Can Water ETFs Be a Profit Bridge?

Water as an investment tool is still a relatively new concept, but ETFs can help access and simplify the market.

There are talks about a profit bridge appearing as the stimulus dollars filter through the U.S. economy. Nick Hodge for Energy and Capital reports that $11 billion has been allocated to revamping the U.S. water supply, which could ultimately lead to a profit bridge.

The potential to profit from water comes from many areas, including:

• Drinking water infrastructure and the machines needed to make potable water
• Waste water infrastructure improvements and additions
• State-wide projects and funding for clean drinking water infrastructure projects

About $4 billion has already been delegated to water-related improvements in every state, with another $7 billion in the wings to go toward new water meters ad building more treatment plants.

ETFs are still the best way to access this sector, since trying to choose companies individually could be a time-consuming challenge for most investors.

• PowerShares Water Resources Fud (NYSEArca: PHO): up 18.2% year-to-date



• PowerShares Global Water (NYSEArca: PIO): up 32.5% year-to-date



• First Trust ISE Water Index Fund (NYSEArca: FIW): up 17.5% year-to-date



• Claymore S&P Global Water Index (NYSEArca: CGW): up 26% year-to-date

Comments

[Canuck Econ...:]

looks just like a regular type of ETF to me - and does not seem cheap! In fact, the risk is that after the govt financed joy ride is over and it is time to start paying the piper through govt cutbacks (as we did in Canada from 94-98) this here little group is going to do quite badly! I say, stay away from these.

Sep 17 09:18 PM