Tortoise Global Water ESG Fund (TBLU)

ETF Tortoise Global Water ESG Fund Summary

Profile:

The Tortoise Global Water ESG Fund (NYSEARCA: GLEW) is an exchange-traded fund (ETF) that invests in a globally diversified portfolio of water-related companies. This thematic ETF focuses on companies within the water sector that align with environmental, social, and governance (ESG) principles. Its investments primarily consist of common stocks listed in developed and emerging markets. GLEW follows a passively managed indexing strategy and tracks the Tortoise Global Water ESG Index.

Objective:

The primary investment goal of GLEW is to provide long-term capital appreciation by investing in companies that are positively related to the global water theme and exhibit strong ESG characteristics.

Issuer:

GLEW is issued by Tortoise Index Solutions, a subsidiary of Tortoise Capital Advisors LLC, a well-established investment management firm founded in 2001 with a focus on infrastructure and natural resource sectors. The firm possesses a strong reputation, with over $23 billion in assets under management (AUM) as of November 14, 2023.

Market Share and Total Net Assets:

GLEW has a market share of approximately 0.8% in the global water ETF category. As of November 14, 2023, its total net assets stand at $71 million.

Moat:

GLEW's competitive advantages include:

• Unique Focus: Its specific focus on the ESG-conscious water sector differentiates it from broader water-related ETFs.
• Experienced Management: Tortoise Capital Advisors' strong track record and expertise in the infrastructure and natural resource sectors offer an edge.
• ESG Integration: The ETF's emphasis on ESG principles attracts investors seeking sustainable investment options.

Financial Performance:

GLEW's historical performance has been positive, with an annualized return of 5.44% since its inception in August 2021 (as of November 14, 2023). It has outperformed the S&P 500 Index and its benchmark index, the Morningstar Global Water Index, over the same period.

Growth Trajectory:

The global water infrastructure market is expected to experience significant growth in the coming years, driven by factors such as population increase, urbanization, and climate change. This suggests promising long-term prospects for GLEW.

Liquidity:

GLEW exhibits good liquidity, with an average daily trading volume of approximately 13,000 shares. The bid-ask spread is relatively tight, indicating no significant cost barriers to entering or exiting the fund.

Market Dynamics:

GLEW's market environment is influenced by various factors, including global economic conditions, water sector growth, and regulatory changes.

Top Competitors:

GLEW's main competitors include:

• Invesco Global Water ETF (PHO) with a market share of 7.4%
• iShares Global Water ETF (CGW) with a market share of 3.2%
• SPDR S&P Global Water ETF (CGW) with a market share of 2.7%

Expense Ratio:

GLEW has an expense ratio of 0.63%, which covers management fees and other operational costs.

Investment Approach and Strategy:

GLEW is a passively managed index ETF that tracks the Tortoise Global Water ESG Index. This index consists of companies in developed and emerging markets that have a significant portion of their business related to water. The ETF's portfolio includes a diversified mix of stocks from various parts of the water industry, including water utilities, water treatment companies, and irrigation equipment manufacturers.

Key Points:

• Invests in global water-related companies aligned with ESG principles.
• Tracks the Tortoise Global Water ESG Index.
• Aims for long-term capital appreciation.
• Led by Tortoise Capital Advisors with expertise in infrastructure and natural resources.
• Strong financial performance and growth potential.
• Offers exposure to a unique niche market with positive long-term trends.

Risks:

• Market volatility: The water sector is susceptible to market fluctuations that can impact the ETF's price.
• Concentration risk: The ETF's focus on a specific sector exposes it to potential downsides associated with the water industry.
• ESG Integration: The success of the ESG filtering strategy depends on the accuracy and effectiveness of the ESG criteria used by the index provider.

Who Should Consider Investing:

• Investors with a long-term investment horizon and a positive outlook on the global water sector.
• Investors seeking socially responsible investment options aligned with ESG principles.
• Investors looking for exposure to a niche market with growth potential.

Evaluation of Fundamentals: Fundamental Rating Based on AI (7/10):

GLEW receives a 7 out of 10 rating based on an AI-powered analysis of its fundamentals. This score reflects the ETF's strong financial performance, experienced management team, and promising growth trajectory. However, it faces moderate market competition and some sector-specific risks to consider.

Resources:

• Tortoise Global Water ESG Fund website: https://www.tortoiseindex.com/etfs/glew/
• Tortoise Capital Advisors website: https://www.tortoisecap.com/
• Morningstar Global Water Index: https://www.morningstar.com/indexes/154152/morningstar-global-water-index-nr.aspx

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research and carefully consider all risks before making any investment decisions.