Water ETFs: A Clear Opportunity

Includes: CGW, PIO
by: Tom Lydon

As one of the primary elements humans need for survival, demand for clean, drinkable water isn’t going to go away. In fact, it’s a situation that’s becoming increasingly dire. This makes ETFs that hold companies on a mission to produce clean water an opportunity.

Most of the world is made up of non-potable salt water, and the drinking water that humans need for survival accounts for about 3% of the earth’s water. Dan Denning & Chris Mayer for The Daily Reckoning say that most of that “water” is trapped in glaciers and icecaps, while the remaining 97% is unfit for consumption.

Water-related ETFs don’t invest in water itself. Instead, they hold companies involved in various aspects of water production, including creating potable water, water treatment, and technologies and services directly related to water consumption.

Water is going to continue to be a major geopolitical theme and could grow into a major investment opportunity as solutions to this worsening problem are sought.

  • PowerShares Water Resources (NYSEArca: PHO)

  • PowerShares Global Water (NYSEArca: PIO)

  • Claymore S&P Global Water (NYSEArca: CGW)