There is a new ETF entrant to the “Water Equities” segment that is worth looking at known as WTRX (Summit Water Infrastructure Multifactor, Expense Ratio 0.80%, $2.6 million in AUM) which launched on August 9 — just several trading sessions ago. Tracking the “Summit Zacks Global Water Index,” the fund joins a niche space that has four other products currently from PowerShares, Guggenheim, and First Trust:
- PHO (PowerShares Water Resources Portfolio, Expense Ratio 0.61%, $717 million in AUM),
- CGW (Guggenheim S&P Global Water, Expense Ratio 0.64%, $424 million in AUM),
- PIO (PowerShares Global Water Portfolio, Expense Ratio 0.76%, $202 million in AUM), and
- FIW (First Trust ISE Water, Expense Ratio 0.57%, $144 million in AUM).
Summit Water Capital Advisors is new to the ETF issuer space with this new ETF launch. WTRX is an interesting fund, because according to fund literature, “Summit Water Capital Advisors is a San Diego-based investment management firm with a 25-year focus on investment strategies in the global water industry. Summit Water leveraged its experience in developing unique proprietary methods for investing in water-related equities, physical water assets, and water infrastructure to create the Summit Zacks Global Water Index, the Summit Water Infrastructure Multifactor ETF’s underlying index.”
Rarely if ever have we seen an investment manager that claims expertise in the specific “Water Equity,” space. A viable sub-sector under the broad category of “Industrial Equities,” the fact that the four aforementioned funds have gathered the assets that they have is testament to investment interest in this space. Thus, we see no reason that another approach here from a seasoned manager of water related assets would not fare well in terms of raising new assets.
More specifically about WTRX (which we will cover in more depth in the future after more live trading registers simple technicals such as 20 and 50 day SMAs for actual technical analysis), “The Underlying Index generally consists of 30-50 stocks that are selected by Zacks Index Services from a universe of domestic and international companies involved in water-related businesses pursuant to the criteria and methodology.”
The most accomplished water-focused ETF, Powershares Water Resource Portfolio (NYSE:PHO) closed at $24.46 yesterday, up +0.04 (+0.16%). PHO has gained nearly 13% year-to-date, almost double the return of the benchmark S&P 500 index in the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.