Global Water Price Index (GWPI)
Global Water Price Index (GWPI)
Due to its extensive involvement in global water contracts and projects, H2O Securities recently began developing a global water pricing benchmark. This initiative aimed to formulate an appropriate pricing strategy for its financing solutions, culminating in the creation of the Global Water Price Index (GWPI).
GWPI is a tool that can become a vital financial benchmark for investors and markets focused on water-related pricing. It aims to facilitate engagement with the growing water sector, driven by increasing global water scarcity, by enabling precise risk management, speculative opportunities, and portfolio benchmarking. A key strength of the GWPI is its broad accessibility and market depth, tracking over 100 water-related companies across more than 19 global stock exchanges.
Why is the GWPI Important?
The GWPI acts as a versatile base for various financial instruments, including:
- Derivatives (futures, options, warrants, and Contracts for Difference)
- Water-related Exchange Traded Funds (ETFs)
- Water-related insurance hedges
First Application:
GWPI is currently used by H2O Securities to inform the pricing of its Global Water Index Token, its Investment Grade Digital Security Token focussed on water infrastructure assets.
Regulatory Compliant:
The GWPI is subject to regulatory oversight. We have chosen to adhere to the European Union Benchmark Regulation, Regulation (EU) 2016/1011, as amended. The GWPI is not yet approved as an index and we are striving to achieve the appropriate Administrator certifications.
How is the GWPI Calculated?
The GWPI is built on a strong foundation of five sub-indices:
34%
Equity Sub-Index (ESI)
24%
Technology Sub-Index (TSI)
41%
Utility Sub-Index (USI)
1%
Commodity Sub-Index (CSI)
ETFund Sub-Index (FSI): Planned for future inclusion
The index is calculated four times per day using a price volume weighted average formula. The result is then normalized to a 1.000-point base value, known as the GWPI. Our model has back-tested results from March 16, 2020, covering 1,256 trading days and various sub-indexes, with a total of over 159,600 data points.
GWPI & GWIT Statistics
GWPI & GWIT Micro Trend Analysis
