From its listing to its peak in 2022, the Nasdaq Veles California Water Index (NQH2O) delivered an astounding return of 474.46%, reflecting growing recognition of water as a critical and finite resource, increasingly attracting investor interest.

In 2024, the NQH2O index demonstrated another period of exceptional growth, surging over 120% YTD by mid-year. This unparalleled performance underscores its emergence as a high-performing asset class, driven by the increasing global demand for water-related investments. Despite a slight pullback later in the year, the index remains a standout in financial markets, showcasing water’s growing importance as an investment theme.

Furthermore, the NQH2O index continues to accurately reflect market conditions, with its values responding to recent climatic fluctuations, including the impact of floods during consecutive wet years. Investors now anticipate a potential price rebound in the face of extended dry periods ahead. This market behavior underscores the index’s sensitivity to climatic dynamics and reinforces the critical need for sustainable water management and infrastructure investment to address the challenges of an increasingly volatile climate.