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.
ISE Clean Edge Water Index Components (Last updated April 2020)
ISE Clean Edge Water Index Semi-Annual Changes
As a result of the March 2020 evaluation (applied in April due to the Covid-19 pandemic) and/or intra-quarterly changes, the following securities were most recently added or removed from the Index:
Additions: Algonquin Power & Utilities Corp (NYSE: AQN) and Forterra (NASDAQ: FRTA)
Deletions: Aquaventure Holdings (NYSE: WAAS) and Primo Water (NASDAQ: PRMW)
Historical changes are
ISE Clean Edge Water Index Performance
Historical index performance is available
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
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 arrangementwhich 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- the issuer of the security may not have annual financial statements with an audit opinion that is currently withdrawn.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
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.