World Water Day brings awareness to our most precious natural resource, so it’s only fitting that we highlight the NASDAQ OMX U.S. Water Index, which tracks companies who conserve,purify, treat and distribute water.
The NASDAQ OMX U.S. Water Index (GRNWATUSL) has 26 of its 28 companies tracking positive returns from the start of this year through 3/20/2013. In that same period, the index has also outperformed the S&P 500 by 2.35%. Year-over-year GRNWATUSL beat the S&P 500 by 11.5%.
While the water segment was hit hard by the financial crisis, the NASDAQ OMX U.S. Water index has fully recovered and is now hitting all-time highs*. The risk factors for the index have also begun to diminish, with 3-month volatility at its lowest levels since 2007– going below 15% in October 2012 and averaging 13% to date through 2013. The realized volatility of the U.S. Water index is now in line with the broader market, something that has not been seen for some time.