ETF Trends
ETF Trends

The water theme for an exchange traded fund (ETF) has been catching on, but slowly. Could water be the next oil-a commodity with huge price appreciation potential, ponders Brett Steenbarger of Trading Markets.com.  The PowerShares Water Resources ETF (PHO) is based on the Palisades Water Index that tracks companies which focus on the provision of portable water, water treatment and water consumption technology. PHO has been strongly correlated to its small-cap stocks and peaked at its price rise in April 2006. It has since recovered from the market decline last May.  Investors should keep an eye on PHO and be sure to sell when it’s below average.

Phochart

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.