The water industry and related exchange traded funds (ETFs) are now grappling with possible water shortages as a result of higher temperatures and drier climates.

Earlier-than-expected rapid melting of snowpacks is attributed to dust storms that deposit dirt and sand on snowy mountain tops, which would then allow the darker snow to absorb more heat and sunlight, reports Scott Streater for The New York Times. This has officials worried over water shortages that would occur in late summer.

Thousands of farmers and ranchers depend on slowly melting snowpacks to provide a steady source of water through the year.

The growing problem of dust storms may further grow as grazing, mining and recreational use destroy vegetation and expose soil to winds.

Some seek to introduce native grass or other soil-stabilizing vegetation across regions afflicted. In China, mats were created to try and help stabilize the subsurface and hold down the shifting dunes. Local governments and power companies have also spent millions trying to disburse seed clouds to increase snow on high-elevation mountains.

As we work to find a solution to this problem, and the larger problem of global warming, water industry-focused ETFs could benefit:

• PowerShares Global Water (PIO): up 2.6% year-to-date

• Claymore S&P Global Water (CGW): down 1.3% year-to-date

Max Chen contributed to this article.

Tags: CGW, Commodity ETFs, Global ETFs, Green ETFs, PIO, Socially Responsible ETFs, Water