ESG funds boost US water stocks

US water utilities share prices are benefiting from an inflow of ESG funds.

In a report published by CNBC, water utility stocks are enjoying a rally as ESG funds have moved into stock such as Aqua America, American States Water Co and American Water Works with the share prices of these companies having reached record levels this year, outperforming the S&P 500. The move follows concerns about water scarcity in some areas of the US, although Angie Storozynski an analyst at Macquarie Capital, points out that many US water utilities are located in the US northwest where water scarcity isn’t a problem. She also says that many of these companies also have low ESG scores.