Water ETFs
Water is one of the most essential resources on the planet, and growing demand from urbanisation, agriculture, and climate change is driving investment into water infrastructure, treatment, and conservation.
This list covers all US-listed water ETFs, spanning domestic and global equity strategies focused on water utilities, purification technology, and infrastructure companies.
AUM figures are updated monthly. Click any row to expand fund details and top holdings.
| Fund | Ticker | AUM ▼ | ||||
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Invesco Water Resources ETFInvesco |
PHO | $2,060M | ||||
Invesco Water Resources ETFThe Invesco Water Resources ETF (PHO) tracks the Nasdaq OMX US Water Index, providing exposure to approximately 39 US-listed companies that develop and deliver products designed to conserve and purify water for residential, commercial, and industrial applications. The fund uses a modified liquidity-weighted methodology that emphasises more established, easily tradeable water companies. PHO’s strategic approach provides diversified exposure across three primary sectors — Industrials, Utilities, and Technology — capturing companies at different points in the water value chain from infrastructure operators and equipment manufacturers to treatment technology providers. As the largest US water ETF with over $2.2 billion in AUM, it offers deep liquidity and tight bid-ask spreads for investors seeking thematic water exposure. Fund Details
AUM$2,060M
Expense Ratio0.59%
Inception12/06/2005
ExchangeNasdaq
StructureETF
Top 5 Holdings
Roper Technologies (ROP)8.53%
Waters Corporation (WAT)8.36%
Ferguson Enterprises (FERG)8.01%
Ecolab Inc. (ECL)7.44%
American Water Works (AWK)7.32%
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First Trust Water ETFFirst Trust |
FIW | $1,843M | ||||
First Trust Water ETFThe First Trust Water ETF (FIW) tracks the ISE Clean Edge Water Index, a modified market capitalisation-weighted index of exchange-listed companies that derive substantial revenues from potable water and wastewater operations. Launched in 2007, FIW holds approximately 38 securities focused on water supply, treatment, and wastewater management. FIW’s distinguishing factor is its narrow thematic focus on water infrastructure and treatment rather than broad utilities exposure. The fund concentrates exclusively on firms operating in potable water supply and wastewater management, with semi-annual rebalancing and screening for market capitalisation, liquidity, and concentration standards to maintain a disciplined water-sector approach. Fund Details
AUM$1,843M
Expense Ratio0.51%
Inception05/08/2007
ExchangeNYSE Arca
StructureETF
Top 5 Holdings
American Water Works (AWK)4.31%
Roper Technologies (ROP)4.22%
Xylem Inc. (XYL)4.21%
Waters Corporation (WAT)4.19%
Ferguson Enterprises (FERG)4.10%
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Invesco S&P Global Water Index ETFInvesco |
CGW | $1,070M | ||||
Invesco S&P Global Water Index ETFThe Invesco S&P Global Water Index ETF (CGW) tracks the S&P Global Water Index, investing at least 90% of its assets in developed-market securities including water utilities, infrastructure companies, equipment manufacturers, and materials providers. The fund holds approximately 77 companies across the global water industry value chain. CGW is distinguished by its global developed-market scope and balanced sector allocation, with roughly equal exposure to Utilities and Industrials. This dual focus gives investors access to both regulated water utilities providing stable cash flows and industrial companies driving water technology innovation. It is the primary choice for investors seeking international diversification within the water theme. Fund Details
AUM$1,070M
Expense Ratio0.58%
Inception05/14/2007
ExchangeNYSE Arca
StructureETF
Top 5 Holdings
SABESP (SBSP3)8.94%
American Water Works (AWK)7.70%
Xylem Inc. (XYL)6.92%
Essential Utilities (WTRG)5.37%
Veralto Corporation (VLTO)5.27%
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Invesco Global Water ETFInvesco |
PIO | $280M | ||||
Invesco Global Water ETFThe Invesco Global Water ETF (PIO) tracks the Nasdaq OMX Global Water Index, investing at least 90% of its assets in global exchange-listed companies that create products designed to conserve and purify water for homes, businesses, and industries. The index is liquidity-weighted and selected through SustainableBusiness.com LLC’s third-party analysis. PIO’s distinction lies in its truly global scope and focused mandate on water conservation and purification solutions. Rather than tracking broad water utilities, the fund emphasises companies developing innovative products and technologies that address water scarcity and quality challenges across multiple sectors and geographies, positioning it as a thematic play on water infrastructure and treatment innovation worldwide. Fund Details
AUM$280M
Expense Ratio0.75%
Inception06/13/2007
ExchangeNasdaq
StructureETF
Top 5 Holdings
Roper Technologies (ROP)9.03%
SABESP (SBSP3)8.81%
Pentair plc (PNR)7.73%
Ecolab Inc. (ECL)7.49%
Ebara Corporation (EBARA)7.17%
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Global X Clean Water ETFGlobal X |
AQWA | $26M | ||||
Global X Clean Water ETFThe Global X Clean Water ETF (AQWA) tracks the Solactive Global Clean Water Industry Index, a market-cap-weighted benchmark of global companies that generate at least 50% of revenues from clean water industry operations. Launched in 2021 and listed on Nasdaq, AQWA provides diversified exposure to approximately 42 securities across the clean water value chain, including treatment, storage, distribution infrastructure, and purification and efficiency strategies. AQWA stands out as the newest and lowest-cost water ETF with an expense ratio of 0.50%. The index incorporates ESG screening for UN Global Compact compliance, aligning with sustainable water management priorities while maintaining broad geographic diversification across developed and emerging markets. Its clean water-specific mandate distinguishes it from broader water utility funds. Fund Details
AUM$26M
Expense Ratio0.50%
Inception04/08/2021
ExchangeNasdaq
StructureETF
Top 5 Holdings
American Water Works (AWK)8.49%
Xylem Inc. (XYL)8.30%
Ferguson Enterprises (FERG)8.11%
Pentair plc (PNR)7.35%
United Utilities Group (UU)6.26%
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Key Terms Full Glossary →
A company that owns and operates water supply and wastewater treatment infrastructure, typically under a regulated monopoly model. Water utilities generate revenue through tariffs charged to residential, commercial, and industrial customers, and tend to offer stable, dividend-paying equity characteristics.
The process of removing contaminants from water to make it safe for a specific end use, such as drinking, industrial processes, or environmental discharge. Water treatment technologies include filtration, reverse osmosis, UV disinfection, and chemical treatment, and represent a growing segment of the water industry as regulatory standards tighten globally.
A condition in which the demand for freshwater exceeds the available supply in a given region. Water scarcity is driven by population growth, urbanisation, agricultural demand, and climate change, and is a primary structural driver behind investment in water infrastructure, conservation, and purification technologies.
An index construction methodology that adjusts traditional market-cap weighting with additional constraints such as concentration limits, liquidity screens, or sector caps. Several water ETF indices use this approach to prevent any single large-cap stock from dominating the portfolio while still reflecting the relative size of constituent companies.
The annual fee charged by an ETF to cover management, administration, and operational costs, expressed as a percentage of assets under management. A lower expense ratio means less drag on returns over time.
The total market value of all investments managed by an ETF. Higher AUM generally indicates greater liquidity, tighter bid-ask spreads, and lower trading costs for investors. AUM fluctuates with market prices and fund inflows or outflows.
FAQ
Water ETFs are exchange-traded funds that invest in companies involved in the water industry, including water utilities, treatment and purification technology providers, infrastructure builders, and conservation-focused businesses. They offer investors diversified exposure to the water sector through a single tradeable security.
There are currently 5 water ETFs listed on US exchanges: PHO, FIW, CGW, PIO, and AQWA. These funds range from US-focused strategies to global portfolios, giving investors multiple options for water sector exposure.
The Invesco Water Resources ETF (PHO) is the largest water ETF with approximately $2.3 billion in assets under management. It tracks the Nasdaq OMX US Water Index and focuses on US-listed water companies.
The Global X Clean Water ETF (AQWA) has the lowest expense ratio among US-listed water ETFs at 0.50%. The First Trust Water ETF (FIW) is the next most affordable at 0.53%.
Yes, most water ETFs pay quarterly dividends sourced from the underlying holdings. Yields vary depending on the fund’s allocation to water utilities versus industrial and technology companies. Funds with heavier utility weightings tend to offer higher dividend yields.
PHO focuses exclusively on US-listed water companies and tracks the Nasdaq OMX US Water Index, while CGW provides global developed-market exposure by tracking the S&P Global Water Index. CGW includes international water utilities and infrastructure companies from Europe and other regions, offering broader geographic diversification.