Water of drinking quality is in constant demand all over the world. Some countries have better resources than others but the demand is always there. With the steady growth of the world’s population that demand will only continue to grow. Coupled with the world’s finite water supply is what is making a water ETF a popular investment option.
The demand for products from companies whose focus is water is possibly at its greatest. Companies that produce purification systems, companies that source or create and bottle drinking water and companies that are finding efficient ways to use water for irrigation purposes on farms. They are all necessary to continue the supply of water to the population. Therefore investment in such businesses would be an obvious choice.
A water ETF, or exchange traded fund is an investment in these companies who are operating within the industries that deal with the use of water in any way possible. There are several different water exchange traded funds you could invest in, here will list a few:
PowerShares Water Resources Portfolio (PHO) whose focus is on potable water, water treatment for safe drinking and anything else directly relating to water consumption.
PowerShares Global Water Portfolio (PIO) as above their focus is on potable water, water treatment for safe drinking and anything else directly relating to water consumption.
Claymore S&P Global Water ETF (CGW) comprised of around 50 different companies dealing with the global demand for water and the necessary infrastructure surrounding the accessibility and availability of water around the globe.
First Trust ISE Water Index Fund (FIW) primarily dealing in waste water and potable water industries.
A good broker will be able to go over these options with you to discuss what may suit you best. There are several more water ETF options however these are the most common options, especially for those starting out with exchange traded fund investing. Same as contributing to biotech ETF, investment in the water industry is a sensible investment. There is no other product that could rival the value of water, and if there was, chances are it would be created by one of the companies you’d be investing in. As changes in the economy continue to occur there is one thing that wont, and that is the world’s need for life, which as we all know, requires safe and usable water. Getting onboard now with an investment in water will put your investment portfolio in a very good position for the future. Contact your broker to talk it over now.