Market Overview

Pour A Glass Of This New Water ETF

Pour A Glass Of This New Water ETF

Investing in water is a theme made more accessible by exchange traded funds and ETF providers are not shying away from testing the waters, no pun intended, with new water funds.

For example, Tortoise Index Solutions launched the Tortoise Water Fund (BATS: TBLU) on Wednesday. The Tortoise Water Fund is the second ETF in Kansas-based Tortoise's lineup. The new ETF tracks the Tortoise Water Index.

Turning To TBLU

TBLU's underlying index, which is fundamentally-weighted, features exposure to water utilities, equipment providers, engineering and construction firms, water treatment and efficiency companies and irrigation firms.

"We believe that our fund offers the purest exposure to the water industry by tracking an index that incorporates fundamental weighting factors that recognize and adjust for the fragmented nature of the water space,” said Matthew Weglarz, portfolio manager for the fund, in a statement.

Related Link: A Neutral View On A Big Utilities ETF

“The urgent need for investment in this essential asset, and the infrastructure that supports it, is becoming increasingly recognized and our fund provides a more direct way for investors to access the opportunity.”

TBLU's top 10 holdings combine for nearly 55 percent of the new ETF's weight. The ETF holds 34 stocks with top 10 holdings including American Water Works Company Inc (NYSE: AWK), Aqua America Inc (NYSE: WTR) and Mueller Water Products (NYSE: MWA).

Joining The Ranks

TBLU becomes the latest ETF to list on the Bats Exchange, bringing that number to 151 ETFs from 27 different issuers.

“In January, Bats welcomed 13 ETFs to its U.S. market. In the fourth quarter of 2016, Bats welcomed a total 34 ETFs from 13 providers. Bats remained the largest exchange operator for U.S. ETF trading over 2016 and won 30 percent of all new U.S. ETF listings vs only 9 percent for 2015. Including transfers from competitor venues, Bats welcomed 85 ETF listings to its U.S. market, an increase of 145 percent over 2015. During the year, Bats won 17 percent of ETF switches,” according to Bats.

TBLU charges 0.4 percent per year, or $40 on a $10,000 investment.


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