ladders11

Will Water ETFs Be 'Blue Gold'?

Water could be a major issue, but that doesn't guarantee investor returns.

These ETFs feature many chemical companies as water treatment is a chemical process. Input costs cannot be ignored. Furthermore, water is, as the post above states, largely a public good. I don't see any guarantee that water companies will achieve pricing power or be able to control input costs. Meanwhile, several major companies involved in water are debt-laden and shedding assets (including VE & GE).

Also the ETFs have expense ratios pushing 1.0%, and they're filled with companies less than half-engaged with water treatment and filtration - most simply aren't doing business in China. And frankly, GE is the dominant player in the water industry yet they're too big to be included in the funds.