5 Best Industrial ETFs

2. Invesco Water Resources ETF (NASDAQ:PHO)

5-Year Performance as of August 14: 82.33%

Invesco Water Resources ETF (NASDAQ:PHO) tracks the performance of the NASDAQ OMX US Water Index. This index aims to monitor the progress of US-listed firms that are involved in water conservation and purification in residential, commercial, and industrial settings. Established on June 12, 2005, Invesco Water Resources ETF (NASDAQ:PHO) offers an expense ratio of 0.59% and holds a portfolio of 39 stocks as of August 11. It is one of the best industrial ETFs to monitor. 

Ecolab Inc. (NYSE:ECL) is the largest holding of Invesco Water Resources ETF (NASDAQ:PHO).Ecolab Inc. (NYSE:ECL) provides solutions and services for water management, hygiene, and infection prevention worldwide. The company’s operations are divided into three segments – Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences. On August 3, Ecolab Inc. (NYSE:ECL) declared a $0.53 per share quarterly dividend, in line with previous. The dividend is distributable on October 16, to shareholders of record on September 19. 

According to Insider Monkey’s first quarter database, 53 hedge funds were bullish on Ecolab Inc. (NYSE:ECL), compared to 47 funds in the prior quarter. Bill & Melinda Gates Foundation Trust held the largest position in the company, comprising 5.2 million shares worth $863.7 million. 

Madison Sustainable Equity Fund made the following comment about Ecolab Inc. (NYSE:ECL) in its second quarter 2023 investor letter:

“Ecolab Inc. (NYSE:ECL) is benefiting from price increases put in place last year to offset inflationary pressures. The price increases more than offset flattish volumes and are modestly ahead of raw material inflation resulting in a return to earnings growth. We believe that Ecolab’s profitability will improve going forward from market share gains and its fast-growing bioprocessing business.”