Today, PowerShares is launching a new ETF which focuses on water resources. The PowerShares Water Resources Portfolio (PHO) will track the Palisades Water Index (ZWI) and will invest in companies involved with the treatment and technology of potable water.
Why would they create an ETF so narrowly focused on water? Global water consumption is growing twice as fast as the population and a UN report says that 2 billion people worldwide will face severe water shortages by the year 2025 if water consumptopn remains at the same rate. Hydrogen Ventures estmates that with the need of more water, it will take about $660 billion over the next 20 years to develop water infrastructure.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.