Global Water ETF: Investing in Rising Water Usage

Water scarcity is rising up the agenda as a major social and economic issue affecting the world's poor. Risks to grain harvests are rising due to the fact that 2.8-billion people live in areas of high water stress. The opportunity for greater water efficiencies is enormous in the developed world too and so is the investment opportunity.

The potential for efficiency gains in water transmission and use are enormous given that about half of water used for irrigation is lost to evaporation and waste, according to a report by the World Economic Water Initiative.

The reality is that water usage is rising all over the world. Changing diet patterns toward meat consumption doubles the need for water for production relative to a vegetarian diet. In the developed world, energy production accounts for nearly 40% of all water withdrawals and that need will grow by 50% by 2025 according to the World Economic Forum.

In the major cities of the world, a staggering amount of water is lost through transmission. In Paris, for example, more than 50% of water is reported to be lost through leakage in the pipes. In China, 60% of cities suffer water shortages and that problem will only grow as populations continue to urbanize.

Claymore S&P Global Water ETF (CGW) offers investors exposure to 50 companies on a global basis that are in water-related businesses. The Criterion Water Infrastructure Fund is more targeted to infrastructure, thus a little less watered down. This is a long term opportunity and investors should get invested now.

Comments

[H2O Fund ma...:]

There are several actively managed mutuals funds which provide an alternative to passively managed products that provide less volatility in an uncertain market. KWINX for global water exposure PFWAX for domestic exposure

Jun 04 08:12 AM

[User 164071:]

I can't find The Criterion Water Infrastructure Fund. Can anyone help? Garey

Jun 04 10:21 AM

[Alan Young:]

Why not compare this to PIO?

Jun 04 11:00 AM

[tc1:]

Alan,
>Why not compare this to PIO?

I believe FP Trading Desk is recommending CGW here because of its greater global exposure and infrastructure emphasis.

Murray Coleman of Index Universe, in an article for S.A. back on Oct 5, 2008, told of some major ETF water funds (FIW, PIO, PHO, CGW) -- nuancing it on how each fund will vary its % of holdings across the 5 major sectors of water-related investments: utilities, wastewater treatment companies, resource managers, infrastructure, and foreign water-related holdings. Some of these different water ETF funds will do better or worse depending on how their largest sector-holdings are doing. CGW, for instance, is strongly weighted with foreign holdings. FIW (at least through last Fall-Winter 08) was strongly weighted on resource managers, and, since this sector outperformed the S&P500, FIW did better than its competitor ETF funds in 2008.

Jun 04 01:21 PM

[Ponce:]

For many years now I have been saying the following.....

"Learn Spanish, learn Chinese and buy water stocks"... Ponce

Spanish for the hired help, Chinese to make deals and water stock because it will be the blue oil of tomorrow.

We can live without oil but not without water.

Jun 05 07:59 AM

[athena:]

I live near desal plants. they will just build more. buy ge.

Jun 05 08:12 AM

[optionsgirl:]

TTEK is a water stock that has been doing very well. Check it out.

Jun 05 01:30 PM

[optionsgirl:]

Correction: water infrastructure stock


On Jun 05 01:30 PM optionsgirl wrote:

> TTEK is a water stock that has been doing very well. Check it out.

Jun 05 01:33 PM

[shredgtr420:]

User 164071 - Garey,
It's a Cdn mutual fund:
www.vengrowth.com/prod...
www.globalblue.ca/pub/...

Jun 05 09:06 PM

[Ponce:]

f76u, you can eat only if you have food and you can save only if you have money......the rich is rich because they added OPM to what they already had and the same is with a country, the US no longer has the means, sorry to say, to be the leader of the world.

Jun 06 09:33 AM

[beaux:]

VE is another way to play water.

Jun 07 02:30 PM

[zenman:]

I have a mock portfolio of 11 water related stocks since 8/08.
CGW has been the best performer, up 58% and 8% Div. dont know about PIO

Jun 13 05:23 AM

[How so?:]

On Jun 13 05:23 AM zenman wrote:

> I have a mock portfolio of 11 water related stocks since 8/08.<br/>CGW
> has been the best performer, up 58% and 8% Div. dont know about PIO

I'm not seeing your reslut when I chart it. was 23 down to 15 now and no Div? Please explain?

Jun 19 08:56 PM

[hydro mojo:]

CWCO is going through osmosis and that is becoming a high demand in the sector due to lack of fresh water in ground. I dont think many know they have this sector within the company

Jun 24 11:30 AM