Tortoise Index Solutions has launched the Tortoise Water Fund (TBLU), an ETF designed to track the total return of the Tortoise Water Index, which comprises companies that are substantially engaged in the water infrastructure and water management industries.
“Water is critical for economic growth and social stability. We believe that there is a tremendous need in the market for a quality index that accurately represents the water industry,” says Jeremy Goff, Tortoise director. “Creating this product is a natural extension of our strategy to provide essential asset solutions in wrappers that are desired by advisors and investors.”
TBLU will employ a passive approach to provide exposure to water infrastructure, management and treatment companies that appear poised to benefit from the expected and much needed investment to rebuild existing infrastructure, construct new infrastructure and better manage and enhance the sustainability of this vital, but finite resource.
“We believe that our fund offers the purest exposure to the water industry by tracking an index that incorporates fundamental weighting factors that recognise and adjust for the fragmented nature of the water space,” says Matthew Weglarz, portfolio manager for the fund. “The urgent need for investment in this essential asset, and the infrastructure that supports it, is becoming increasingly recognised and our fund provides a more direct way for investors to access the opportunity.”