Exchange traded funds (ETFs) are often touted for their liquidity, but now there is a new truly "liquid" ETF, Claymore S&P Global Water Index (CGW). The ETF launched this week includes both water utilities and infrastructure, and water equipment and materials companies. The ETF is consists of 50 stocks in developed markets around the world, as research points to a global need for clean water.
There is another water ETF available, PowerShares Water Resources (PHO), launched in December 2005. This ETF tracks companies with a focus on the provision of portable water, water treatment and water consumption technology. There are international holdings, but many are small cap water infrastructure companies, such as purification facilities. PHO is up 6% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.