Invesco unveils $2.1 billion fund tackling water scarcity, attracting investor interest
![Invesco unveils $2.1 billion fund tackling water scarcity, attracting investor interest](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/4543864.jpg)
On World Water Day, analyst Mahi Roy highlighted five US-based funds and several companies dedicated to enhancing water access quality and tackling various water-related challenges.
The largest is the $2.1 billion Invesco Water Resources exchange-traded fund, bearing the ticker symbol PHO. Other top-rated funds listed by Morningstar include Calvert Global Water (CFWAX), Invesco S&P Global Water ETF (CGW), Virtus Duff & Phelps Water (AWTPX), and Ecofin Global Water (EBLU).
“Investors looking for exposure to the reliable supply of safe freshwater should carefully consider these investments as part of a well-diversified portfolio,” Roy said. “It’s a small landscape, but it’s also very diverse.”
Also read: India’s Bengaluru faces acute water shortage
While “few options exist that can be categorized as pure-play water companies,” due to the challenges of investing directly in water rights, the funds hold companies that “work to ensure the availability and sustainable management of water,” Roy said.
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Like other environmental, social, and governance (ESG) offerings, the water funds market has faced challenges. These funds experienced a total net redemption of over $150 million in the previous year’s fourth quarter.
Moreover, no new water funds were launched in 2023, following a year in which only one fund, the Ecofin Sustainable Water Fund, was introduced. However, the Ecofin fund was ultimately liquidated after a year due to insufficient asset accumulation.
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