The ISE Clean Edge Water Index (HHO) is a modified market capitalization-weighted index designed to track the performance of companies that derive a substantial portion of their revenues from the potable water and wastewater industry. Industry exposure includes water distribution, infrastructure (pumps, pipes, and valves), water solutions (purification and filtration), and ancillary services such as consulting, construction, and metering.
An exchange traded fund, FIW, is based on the ISE Clean Edge Water Index and is sponsored by First Trust Advisors L.P. See index components and learn more about our methodologies, up-to-date performance, and licensed products below.
ISE Clean Edge Water Index Components
ISE Clean Edge Water Index Semi-Annual Changes
As a result of Clean Edge’s universe selection and NASDAQ review and calculation, the following securities were most recently added or removed from the Index as of Monday, June 19, 2017:
Additions: A. O. Smith Corporation (AOS); Aqua Venture Holdings Limited (WAAS); Connecticut Water Service, Inc. (CTWS); Middlesex Water Company (MSEX); and York Water Company (YOWR).
Removals: Ashland Global Holdings Inc. (ASH); Cadiz Inc. (CDZI); Crane Company (CR); Layne Christensen Company (LAYN); and PICO Holdings, Inc. (PICO).
ISE Clean Edge Water Index Performance
Historical index performance is available here.
ISE Clean Edge Water Index Methodologies
The ISE Clean Edge Water Index (HHO) (formally the ISE Water Index) began on December 29, 2000 at a base value of 28.80. Click here to learn more.
Index eligibility is limited to specific security types only. The security type eligible for the Index include common stocks, ordinary shares, and depositary receipts. Security types not eligible for the index include closed-end funds, exchange-traded funds (ETF), holding companies, investment vehicles or Real Estate Investment Trusts (REIT).
To be eligible for inclusion in the Index, a security must meet the following criteria:
- the issuer of the security must derive a substantial portion of their revenues from the potable and wastewater industry, according to Clean Edge;
- be listed on The Nasdaq Stock Market, the New York Stock Exchange or NYSE MKT;
- a minimum worldwide market capitalization of $100 million;
- a minimum free float of 20%;
- a minimum three-month average daily dollar trading volume (ADDTV) of $500 thousand;
- one security per issuer is permitted;
- have “seasoned” for at least three months on an index recognized market;
- the issuer of the security may not have entered into a definitive agreement or other arrangement which would likely result in the security no longer being Index eligible;
- may not be issued by an issuer currently in bankruptcy proceedings; and
- the issuer of the security may not have annual financial statements with an audit opinion that is currently withdrawn.
For detailed methodology information visit here.
Financial Products Based on the ISE Clean Edge Water Index
The First Trust Water ETF (FIW) is based on the ISE Clean Edge Water Index (HHO) and is sponsored by First Trust Advisors L.P.
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Clean Edge, Inc., does not make any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund.