Daily ETF Watch: Water Fund Planned

January 25, 2016

Newcomer Denver-based Elevation ETF Trust has filed for a global fund that will target companies that generate significant revenues from water-related businesses serving the industrial, utilities and energy sectors. The Summit Water ETF will track the Zacks Global Water Index and trade on the NYSE Arca.

The fund is not the first water-focused ETF—there are already several on the market. The largest is the PowerShares Water Resources Portfolio (PHO | A-46), with $572 million in assets under management. PHO has been trading for over a decade.

The Summit fund will track an index that requires that the component stocks meet liquidity thresholds and have at least $200 million in market capitalization. The methodology seeks to target companies that offer the best risk/return potential while maximizing exposure to water-related business lines. The prospectus noted that the index relies on a proprietary ranking and weighting methodology.

The fund is expected to have 30 to 50 holdings.

Contact Heather Bell at [email protected].

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