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AQWA - ETF AI Analysis

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AQWA

Global X Clean Water ETF (AQWA)

Rating:66Neutral
Price Target:
AQWA, the Global X Clean Water ETF, earns a solid overall rating driven by strong core holdings like Xylem, Zurn Water Solutions, Pentair, and Watts Water Technologies, which all show healthy financial performance, positive earnings commentary, and supportive growth initiatives. Utilities such as American Water, United Utilities, and Severn Trent add stability through regulated businesses and dividends, though high leverage, negative free cash flow, and some overvaluation and mixed technical signals across several holdings slightly weigh on the fund. The main risk factor is the fund’s concentration in water-related infrastructure and utilities, which ties performance closely to that single theme and to interest-rate and regulatory conditions affecting those companies.
Positive Factors
Strong Year-To-Date Results
The ETF has delivered positive year-to-date performance, showing that its clean water theme has held up reasonably well so far this year.
Leading Holdings With Solid Momentum
Several of the largest positions, such as Ferguson and key UK water utilities, have shown strong gains, helping support the fund’s overall returns.
Global Exposure Within a Focused Theme
Holdings spread across the U.S., U.K., and several other countries provide some geographic diversification while still staying focused on the clean water sector.
Negative Factors
High Sector Concentration
More than half of the portfolio is in industrials and a large share is in utilities, so the fund is heavily exposed to how these two sectors perform.
Mixed Performance Among Top Holdings
Some major positions like Xylem, Pentair, and Core & Main have shown weak year-to-date performance, which can drag on the ETF’s overall results.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning a larger slice of returns goes toward fees each year.

AQWA vs. SPDR S&P 500 ETF (SPY)

AQWA Summary

The Global X Clean Water ETF (AQWA) is a fund that follows the Solactive Global Clean Water Industry Index, focusing on companies involved in water purification, supply, and infrastructure. It mainly holds industrial and utility businesses from the U.S. and the U.K. Well-known names in the fund include American Water and Ferguson. Someone might invest in this ETF to tap into the long-term growth of water demand while also supporting a key environmental theme. A key risk is that it is concentrated in the water sector, so its value can rise or fall more than the broader stock market.
How much will it cost me?The Global X Clean Water ETF (AQWA) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a niche theme, requiring more specialized research and management.
What would affect this ETF?The Global X Clean Water ETF (AQWA) could benefit from increasing global demand for clean water solutions driven by population growth, climate change, and government investments in water infrastructure. However, it may face challenges from rising interest rates, which could impact utilities and industrial companies, as well as potential regulatory hurdles or geopolitical risks affecting its global exposure. The ETF's focus on sectors like Industrials and Utilities, along with top holdings such as Xylem and Pentair, positions it to capitalize on water innovation but also makes it sensitive to broader economic conditions.

AQWA Top 10 Holdings

AQWA is very much a pure-play water story, with industrials and utilities doing most of the heavy lifting. Ferguson and Advanced Drainage Systems have been rising, helping power the fund’s recent momentum, while U.K. utilities like United Utilities and Severn Trent add a steady, dividend-backed current. On the flip side, Xylem, Pentair, and Core & Main have been lagging, acting like a bit of an anchor despite solid long-term narratives. With holdings spread across the U.S. and U.K., the ETF offers global exposure but is tightly tied to the clean water theme.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Ferguson PLC8.46%$2.20M£37.89B53.97%
65
Neutral
American Water8.32%$2.16M$25.86B-8.53%
73
Outperform
Xylem7.95%$2.07M$29.25B6.55%
79
Outperform
Pentair7.59%$1.97M$14.83B2.53%
75
Outperform
United Utilities6.13%$1.59M£9.14B20.48%
72
Outperform
Essential Utilities4.66%$1.21M$11.20B-2.16%
66
Neutral
Severn Trent4.57%$1.19M£9.49B15.10%
71
Outperform
Zurn Water Solutions4.40%$1.14M$8.76B56.63%
79
Outperform
Watts Water Technologies4.29%$1.12M$10.06B47.32%
77
Outperform
Advanced Drainage Systems4.16%$1.08M$11.84B35.39%
74
Outperform

AQWA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
19.53
Negative
100DMA
19.56
Negative
200DMA
19.40
Negative
Market Momentum
MACD
-0.05
Positive
RSI
40.90
Neutral
STOCH
21.82
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AQWA, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 19.59, equal to the 50-day MA of 19.53, and equal to the 200-day MA of 19.40, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AQWA.

AQWA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$25.77M0.50%
66
Neutral
$98.47M1.00%
69
Neutral
$97.41M0.55%
65
Neutral
$97.16M0.50%
59
Neutral
$93.04M0.65%
62
Neutral
$91.72M0.50%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AQWA
Global X Clean Water ETF
19.02
1.35
7.64%
FFND
Future Fund Active ETF
EVX
VanEck Environmental Services ETF
CSNR
Cohen & Steers Natural Resources Active ETF
SOCL
Global X Social Media ETF
IQM
Franklin Intelligent Machines ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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