Investing in water: which stocks & ETFs on the stock market?

Updated on 27 July 2026

To invest in water on the stock market, you can buy shares in companies from the sector or, more simply, thematic ETFs such as the Amundi MSCI Water, the iShares Global Water or the Amundi PEA Eau, the only water ETF eligible for the PEA (a French tax-advantaged equity savings account). This article compares these investment options, their indices and their risks.

Key takeaways

• The sector breaks down into three main segments: water utilities, distribution and wastewater treatment.
• The Amundi PEA Eau (FR0011882364) is the only water ETF that can be held in a PEA; the others are held in a standard securities account.
• The iShares Global Water is the largest water ETF on the market, with around €1.87 billion in assets as at 29 May 2026.
• The sector remains sensitive to regulation and to climate events, with a risk of capital loss.

Why invest in water?

Investing in water is a theme studied by some investors around the world. Water is an essential resource across many aspects of daily life, from consumption to industry and agriculture. Water-related companies and services may therefore offer growth prospects, with no guarantee.

The water sector covers a range of activities: wastewater management, drinking-water treatment, water infrastructure and water technology. Investors can therefore gain exposure to different facets of the market by buying individual shares or ETFs that track the performance of a water-related index.

The ETFs available in this sector include:

• Amundi MSCI Water UCITS ETF - Acc (FR0014002CH1)
• Amundi MSCI Water UCITS ETF - Dist (FR0010527275)
• Amundi PEA Eau (MSCI Water) UCITS ETF - Capi (FR0011882364, PEA-eligible)
• iShares Global Water UCITS ETF (IE00B1TXK627)
• L&G Clean Water UCITS ETF (IE00BK5BC891)

Good to know : These ETFs track indices such as the MSCI ACWI IMI Water ESG Filtered, the S&P Global Water and the Solactive Clean Water.

Investing in water offers investors several advantages:

1. Strong growth potential: with rising demand for drinking water, companies and services in the water sector could benefit from growth prospects, bearing in mind that any projection remains uncertain.
2. A sustainable investment: investing in water supports the preservation and sustainable management of a vital resource, by backing companies working to improve water efficiency and quality, notably through new technologies.
3. Portfolio diversification: the water sector is generally less correlated with other stock market sectors. Investing in water can therefore diversify a portfolio while giving exposure to the sector's growth potential.

Key point : thanks to that diversification, water investments can help spread the risk across a portfolio, without removing the risk of capital loss. It is still essential to understand how the water sector works and what makes it specific. Environmental regulations and resource-management issues, for example, can affect company performance.

The different segments to explore

When you decide to invest in water, it is important to consider the different segments that make up this broad field. By investing in ETFs (exchange-traded funds), in shares of companies specialising in water or in water-related services, you can diversify your portfolio, bearing in mind that diversification does not remove the risk of capital loss.

The segments worth exploring include:

• The water utilities segment: the companies that supply drinking water to households and industry, and manage wastewater.
• The water distribution segment: the companies that carry water through pipe networks, and service and maintain that infrastructure.
• The water treatment segment: the companies that treat water to make it drinkable, or clean it before returning it to the environment.

In investment terms, the water market has reached close to $300 billion worldwide. With a growing world population, demand for water keeps rising. Investors therefore need to weigh the opportunities the sector offers, by looking at the different companies and products available.

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Which ETFs can you use to invest in water?

Four UCITS ETFs give diversified exposure to the water sector: the Amundi MSCI Water, the iShares Global Water, the L&G Clean Water and the Amundi PEA Eau, the only PEA-eligible ETF.

Investing in water can be an attractive opportunity given the importance of this natural resource. Several companies and ETFs focus on the sector, giving investors a range of ways to put money into a promising field. 

These ETFs generally track stock market indices of the water sector, such as the S&P Global Water, the Solactive Clean Water or the MSCI ACWI IMI Water ESG Filtered. They invest in a basket of shares in different companies, which lets investors spread the risk tied to a single company or a single country.

According to a Research and Markets report, the global water management market was worth $261.94 billion in 2020 and is expected to reach $349.97 billion by 2025, a compound annual growth rate (CAGR) of 6%. That illustrates the sector's potential and the investment opportunities it offers.

Notable companies in the water sector include those specialising in managing water and water-related services, as well as those working on the production of drinking water around the world. To analyse the sector's shares, weigh criteria such as market capitalisation, dividend yield, past performance and future growth prospects.

Only one water ETF is eligible for the PEA:

1. Amundi PEA Eau (MSCI Water) UCITS ETF - Capi (FR0011882364): it tracks the MSCI ACWI IMI Water Custom index and holds companies worldwide with significant exposure to the water sector. Its structure allows it to be held in a PEA despite that international exposure.

Other ETFs, which are not PEA-eligible and belong in a standard securities account, can also be considered:

• Amundi MSCI Water UCITS ETF - Acc (FR0014002CH1)
• Amundi MSCI Water UCITS ETF - Dist (FR0010527275)
• iShares Global Water UCITS ETF (IE00B1TXK627)
• L&G Clean Water UCITS ETF (IE00BK5BC891)

These ETFs track different water-sector indices, such as the S&P Global Water, the Solactive Clean Water and the MSCI ACWI IMI Water ESG Filtered. Their performance is tied to the performance of the water-sector shares they hold.

Here are some figures on these ETFs:

Assets and number of holdings according to JustETF, as at 27 May 2026 (Amundi MSCI Water), 29 May 2026 (iShares Global Water), 26 May 2026 (L&G Clean Water) and July 2026 (Amundi PEA Eau).

What are the risks and opportunities in the water market?

Investing in water carries both opportunities and risks. The water sector spans several industries: wastewater management, drinking-water treatment and infrastructure services. Water companies have therefore become a theme studied by many investors.

The world faces rising demand for quality drinking water and for better wastewater management. Investing in water-related shares therefore offers growth potential. 

Investing in the water sector is not without risk, however. One of the main risks comes from regulation and legislation in different countries. Water companies can be subject to government rules, which can affect their profitability.

Natural events such as droughts and climate disasters can also hit the water resources companies need to operate. Those situations can affect their results and, in turn, investor returns.

It is also worth monitoring the performance of the sector's benchmark indices, such as the S&P Global Water and the Solactive Clean Water. These indices bring together the most influential companies in the water sector, and their performance indicates the overall health of the market. Apps such as Finary let you track these positions in one place, across every broker, alongside the rest of your wealth.

Finally, as part of your analysis, assess the market and the companies inside these ETFs carefully. Avoid putting all your eggs in one basket. Diversifying your portfolio reduces the impact of events specific to a single sector or a single company.

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Conclusion on investing in water

Investing in water offers several ways to diversify your portfolio and to contribute to a major global issue. You can approach the sector in several ways, including the following:

• Direct investment in water-related companies: buying shares in companies operating in the water sector, notably those involved in utilities, drinking-water distribution, sanitation and related industries.

• Investment in water ETFs: ETFs (exchange-traded funds) are financial products that let you invest in a basket of shares tied to a specific theme, such as water. Examples of water-sector ETFs include the Amundi MSCI Water UCITS ETF - Acc, the Amundi MSCI Water UCITS ETF - Dist, the Amundi PEA Eau (MSCI Water) UCITS ETF - Capi, the iShares Global Water UCITS ETF and the L&G Clean Water UCITS ETF.

• Choosing the right benchmark index: some stock market indices give exposure to water-related companies, such as the S&P Global Water, the Solactive Clean Water and the MSCI ACWI IMI Water ESG Filtered.

Note that some ETFs are PEA-eligible, such as the Amundi PEA Eau (MSCI Water) UCITS ETF - Capi, which gives access to a favourable tax framework. Check each product's PEA eligibility before investing.

The water sector represents a market estimated at several billion dollars, with companies operating in many countries. For investors looking to diversify their portfolio and support better quality and availability of drinking water worldwide, the sector offers real options.

Investing in water is above all a long-term bet on a scarce resource: choose your ETFs or shares on their PEA eligibility, their fees and their benchmark index, and keep in mind the risk of capital loss inherent in any equity exposure.

Frequently asked questions

Which stocks should you choose to invest in water?

You can target listed companies specialising in water management, distribution or treatment. As non-exhaustive examples, and without any recommendation, these companies operate in public utilities, sanitation or water technology. Check PEA eligibility with your broker.

Is water listed on the stock market?

Water itself is not listed on the stock market, but the shares of water-related companies are. You can invest in those companies or, more simply, in ETFs dedicated to the water sector, which track a thematic index.

How do you buy a water ETF on the stock market?

Open a securities account or a PEA with a broker or a bank, search for the water ETF by name or ISIN, then place a buy order specifying the quantity. Once the order is executed, the units are added to your portfolio, whose performance you should track regularly.

What are the fees and risks of a water ETF?

Water ETFs charge annual fees (TER) of around 0.49% to 0.65%, higher than a broad index ETF. Like any equity investment, they carry a risk of capital loss, amplified by sector concentration and by sensitivity to regulation.

Sources

JustETF, Amundi PEA Eau (MSCI Water) UCITS ETF - product page

JustETF, iShares Global Water UCITS ETF - product page

JustETF, L&G Clean Water UCITS ETF - product page

JustETF, Amundi MSCI Water UCITS ETF - product page

Service-public.fr, the PEA (plan d'épargne en actions): how it works and eligibility