First Trust Water ETF (FIW)

Overview

The fund is an investment vehicle that aims to generate returns by investing primarily in companies involved in the potable water and wastewater industry. It pledges to allocate at least 90% of its net assets, including funds borrowed for investment, into securities that are included in an index specifically designed to track the performance of small, mid, and large capitalization companies. These companies are selected based on their significant revenue generation from the potable water and wastewater sector, underlining the fund's focus on tapping into the growth and development within this essential service industry. This approach aligns with Clean Edge's methodology for identifying influential players in the water industry, thereby promising investors exposure to a segment with critical importance to global infrastructure and sustainability efforts.

Products and Services

The fund offers investors an opportunity to invest in a diversified portfolio focusing on the water industry, comprising:

• Index-Linked Investments: The fund invests primarily in securities that are part of an index tracking the performance of companies across various capitalizations in the potable water and wastewater sector. This method ensures diversification and exposure to different segments of the market, increasing the potential for risk-adjusted returns.
• Revenue-Focused Company Selection: Investment choices are centered around companies that derive a substantial portion of their revenues from the water industry. This criterion aims to secure growth by tapping into businesses directly involved in water provision and treatment, leveraging their intrinsic value and growth potential within the global market.