There is an exchange traded fund (ETF) opportunity for investors to bank on the water theme, PowerShares Water Resources (PHO). PHO tracks the Palisades Water Index, which invests in the common stocks of companies in the water industry, reports Jonathan Bernstein of ETFZone.com. PHO is heavily weighted in the industrial sector, utilities and business services. The fund has international holdings, but many holdings are small cap water infrastructure companies, such as purification facilities.
Clean water is already scarce and has become a commodity. With the current degradation of the natural resource, especially in emerging markets areas of the world, the lack of incentive to protect it is still not intense. Therefore, clean water must either be found, or efficiently(cost) made. This is where there is opportunity for investors.
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.