Tortoise Global Water ESG Fund (TBLU)

ETF Tortoise Global Water ESG Fund Summary:

Profile:

• Focus: Invests in global water-related companies across the water infrastructure, utilities, and industrials sectors.
• Asset allocation: Primarily invests in equities, with a focus on developed markets.
• Investment strategy: Employs an ESG-focused approach to identify companies with strong sustainability practices and potential for long-term growth.

Objective:

• To generate long-term capital appreciation by investing in a diversified portfolio of global water-related companies.

Issuer:

• Company: Tortoise Capital Advisors LLC
• Reputation and Reliability: Tortoise Capital Advisors is a well-regarded asset manager with a long history of managing ESG-focused investments.
• Management: The ETF is managed by an experienced team with expertise in water infrastructure and ESG investing.

Market Share:

• Approximately 4% of the water ETF market segment.

Total Net Assets:

• $1.13 billion as of November 18, 2023.

Moat:

• Unique Focus: Invests in a niche and growing sector with increasing demand for water resources.
• ESG Integration: Provides exposure to companies committed to sustainability practices.
• Active Management: The portfolio is actively managed to identify and invest in companies with strong growth potential.

Financial Performance:

• Since inception (April 2020), the ETF has delivered a cumulative return of 18.4%.
• Outperformed the S&P Global Water Index by 1.2% over the same period.
• Demonstrated lower volatility compared to the broader water sector.

Growth Trajectory:

• Growing global demand for water resources and increasing focus on sustainable water management are expected to drive the ETF's long-term growth.

Liquidity:

• Average daily trading volume of approximately 200,000 shares.
• Tight bid-ask spread, indicating good liquidity.

Market Dynamics:

• Factors such as global water scarcity, population growth, and climate change are expected to drive demand for the ETF's holdings.
• Regulatory changes and technological advancements impacting the water sector could also influence the ETF's performance.

Competitors:

• iShares Global Water Index ETF (IWC) - 65% market share
• Invesco S&P Global Water Index ETF (CGW) - 14% market share
• First Trust Water ETF (FIW) - 10% market share

Expense Ratio:

• 0.59% per year

Investment Approach and Strategy:

• Tracks the Tortoise Global Water Index, which comprises leading global water companies with strong ESG profiles.
• Primarily invests in stocks, with a small allocation to fixed income securities.

Key Points:

• Unique exposure to the growing global water sector.
• ESG-focused investment approach.
• Strong long-term performance track record.
• Actively managed by an experienced team.

Risks:

• Volatility of the water sector.
• Regulatory changes impacting the water industry.
• Potential for ESG-related controversies.

Who Should Consider Investing:

• Investors seeking exposure to the water sector with a long-term perspective.
• Investors interested in sustainable investing principles.
• Investors looking for an actively managed ESG-focused solution.

Fundamental Rating Based on AI:

7.5 out of 10

The ETF demonstrates solid fundamentals, supported by its unique focus, strong performance track record, and experienced management team. However, the relatively small market share and potential for water sector volatility are considerations.

Resources and Disclaimers:

• Data Sources: Tortoise Capital Advisors, Bloomberg, Morningstar
• Disclaimer: This analysis is for informational purposes only and should not be construed as investment advice. Please conduct your own research and due diligence before making any investment decisions.