Eight Water Stocks to Follow in 2025

As we approach the end of 2024, the stock market has exhibited notable growth, with major indices reaching new heights.

The Nasdaq Composite has risen by 34.4% year-to-date, the S&P 500 by 27%, and the Dow Jones Industrial Average by 16.5% (investopedia.com).

Our focus remains on water-related investments, which continue to demonstrate resilience due to the essential nature of water resources. Here’s an updated overview of key water stocks and ETFs, reflecting their year-to-date (YTD) and five-year performance:

1.) American Water Works Co. Inc. (NYSE: AWK)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +2.5%
• 5-Year Performance: +6%

American Water Works is the largest publicly traded water utility in the U.S., providing water and wastewater services to millions of customers.

Current Price: $129.18

2.) Essential Utilities Inc. (NYSE: WTRG)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +1%
• 5-Year Performance: -18%

Formerly Aqua America, WTRG has faced challenges this year but remains a key player in water utilities with growing natural gas operations.

Current Price: $37.99

3.) California Water Service Group (NYSE: CWT)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: -7.5%
• 5-Year Performance: -6%

CWT operates in water-scarce regions like California and remains well-positioned to address long-term drought challenges.

Current Price: $47.91

4.) American States Water Company (NYSE: AWR)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +2.5%
• 5-Year Performance: -6%

AWR’s operations include water utilities and military contracts, supporting its consistent long-term stability and growth.

Current Price: $82.41

5.) Invesco Global Water ETF (NYSEARCA: PIO)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +3%
• 5-Year Performance: +32%

This ETF tracks global water infrastructure, technology, and service companies, reflecting strong global water investments.

Current Price: $40.33

6.) Invesco Water Resources ETF (NYSEARCA: PHO)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +14%
• 5-Year Performance: +78%

PHO focuses on potable water distribution and conservation technologies, aligning with increasing demand for sustainable solutions.

Current Price: $68.73

7.) Invesco S&P Global Water Index ETF (NYSEARCA: CGW)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +10%
• 5-Year Performance: +39%

CGW provides exposure to leading global water companies, showcasing the critical importance of water infrastructure globally.

Current Price: $57.68

8.) First Trust Water ETF (NYSEARCA: FIW)

Chart from Google Finance. Data accurate as of December 17, 2024.

• YTD Performance: +13%
• 5-Year Performance: +78%

FIW has delivered impressive returns, focusing on water treatment, infrastructure, and technology innovations.

Current Price: $106.28

Summary

While individual water stocks like AWK, WTRG, and CWT faced declines in 2024, their five-year performances remain strong, highlighting the sector’s long-term resilience. Water-focused ETFs such as PHO, PIO, and FIW have posted significant gains both YTD and over five years, underscoring growing investments in water technology and infrastructure.

Water remains a critical resource, and as infrastructure, technology, and sustainability efforts expand, the water sector continues to present opportunities for investors seeking both stability and long-term growth.

Disclaimer:
This article is for informational purposes only and is not intended as financial advice or a recommendation to buy, sell, or trade any stocks, ETFs, or securities mentioned. Readers should conduct their own research or consult with a financial advisor before making any investment decisions. All information provided is for observation and general knowledge only.