There are still parts of the developing world that do not have access to piped water.   In fact, only 11% of households in India do and China is another country facing delivery problems.  As these country’s economy expand, this provides opportunity for growth in water delivery around the world.  Another area of growth is within the U.S.  As most pipes in the country are over 100 years old they will need to be repaired or replaced.

The exchange traded fund, PowerShares Water Resources (PHO) allows for investors to take part in the delivery expansion.  The ETF follows the Palisades Water Index and is comprised of utility, treatment, infrastructure, analytical, resource management and conglomerate companies.  This diversification within the sector touches each aspect of the water delivery system.  Top holdings include Calgon Carbon (CCC), Consolidated Water (CWCO), and Pentair (PNR).  PHO is up 20% year-to-date.

Pho

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.

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