Global X Clean Water ETF

Global X Clean Water ETF (AQWA) tracks the Solactive Global Clean Water Industry Index: 40 water utilities and water-industry companies, led by American Water Works, Ferguson and Xylem. It charges 0.50% a year, just under the 0.54% average of similar water funds, but at $23.8 million in net assets (May 31, 2026) it is much smaller than most rivals. Its returns ranked last among those funds over one and three years through October 27, 2026.

• Over the year to Oct 27, 2026, AQWA returned -5.3%, 8th of 8 among similar funds.
• Its worst full calendar year was 2024 (+4.3%); its best was 2023 (+20.1%).
• The deepest fall in its price history was 14.6% (Jul 25, 2023 to Oct 25, 2023), recovered by Dec 13, 2023.

As of May 31, 2026, the fund held 40 securities; the ten largest made up 58.22% of assets.

• Over the three months to May 31, 2026, investors withdrew a net $13.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.10%, +3.06%, -8.85%.

AQWA is an index fund. It aims to match the Solactive Global Clean Water Industry Index before fees, and it does not move to cash when markets fall. Solactive AG is an independent firm. It uses a natural language processing algorithm, which is software that reads filings, earnings-call transcripts and other public documents, to rank companies tied to clean water. It then checks that the top-ranked firms earn at least 50% of their revenue from water treatment and recycling, water storage and distribution, water purifiers and heaters, or water-efficiency consulting.

Companies also need a market value of at least $200 million and average daily trading of at least $2 million over six months (as of January 31, 2026). Each quarter, Solactive and data firm Minerva remove any company that breaches the UN Global Compact's standards on labor, human rights, the environment and corruption. Weights follow each company's stock market value, with caps applied at each twice-yearly review: 8% for any one stock, 40% combined for stocks at 4.5% or more, 4.5% for the rest, and a 0.3% minimum. Weights drift between reviews. American Water Works was 8.2% on May 31, 2026.

Global X Management Company, the adviser, generally holds each index stock in about the same proportions as the index. It sometimes does this through depositary receipts, which are certificates representing foreign shares. The May 31, 2026 holdings report showed no derivatives, and annual turnover was a modest 17%.

• AQWA charges 0.5% a year, versus an average of 0.54% for the similar funds below (4th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

It is a narrow 40-stock fund built around a single theme, water, so it would typically sit as a small slice beside broader holdings.

AQWA adds a concentrated bet on water-related stocks. It launched in April 2021, so it has no record in the 2008 or 2020 crashes. It lost 19.62% in 2022, its worst calendar year, including a 13.41% drop in the second quarter. Its price history starts in October 2022, after that market slump. Since then, its deepest fall was 14.6%, from July to October 2023, and it had recovered by December 13, 2023. Selling shares for income after a year like 2022 would have locked in a sizable loss.

Income is modest: a 1.61% yield over the 12 months to October 27, 2026, paid twice a year. The 0.50% expense ratio is under the 0.54% average for similar funds. In the SEC's standard example on $10,000, that costs $51 in year one and $628 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.