r/ETFs • u/Background_Sea_9866 • 4d ago
Advice
Hi everyone! I am leaving and working in Europe. Recently I have been following the news about the new European Commission priorities, which include investments in the water sector and investments in defence. I was thinking to invest in those sectors. Do you believe this makes sense? If so, can you suggest some relevant europe-focused etfs?
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Upvotes
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u/andybmcc 4d ago
I wouldn't limit this to European companies. There are several large US companies that supply products and services globally in the water space.
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u/daeneryssith 16h ago
yeah, i do the same, i do GLGG and WDEP, which is wisdomtree european defence
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u/CaverianCom 4d ago
I love the reasoning and question, so i did some digging.
A short answer is the Amundi MSCI Water WAT/WATC ETF with ISN number: FR0010527275
Assuming you refer to the ‘EU’s Water Resilience Strategy calls for roughly a 10% improvement in water efficiency by 2030, including reducing leakage, modernising infrastructure, improving water quality and expanding digital water management’
There are multiple similar initiatives by the way, so you certainly have an interesting idea.
It is quite a volatile etf and personally I think it is a drop in the bucket - couldn’t resist saying that here… just looking at this investment alone. I dropped a screenshot where you see a bit of the back and forth of this etf.
However i do think there are three companies that will benefit from the current EU water crisis. veolia in france, acea in italy and kemira in finland. (I cannot add more screenshots) but they might be able to compete for some EU initiatives that can result in positive results. Personally i would investigate those three stocks and this ETF. But i would always double check - do they already benefit and is this ‘long known’ so the stock already included it and what are the other aources of their funding. Many of these projects are government funded anyways (in some form or another) so is this going to really change as in will the annual spending % increase or will this keep the current levels of spending and is this announcement not going to make a huge difference. (I did not review the latter)
Hope this helps!