As water becomes more scarce and the world is hit hard by drought, now could be the time to look toward the exchange traded fund (ETF) that tracks the resource.
Charles Wheelan at Yahoo! Finance wonders if the U.S. is paying enough attention to increasing water shortage issues. He points out that skyrocketing oil prices have caught people off guard — imagine if we could have the same foresight when it comes to water.
It’s no secret that the U.S. has its water issues and as Wheelan explains the Southwest has been developing communities non-stop complete with desert swimming pools and lawns, and the Southeast was in a drought most of the fall. Even the Great Lakes are drying up as most of the water drawn up is not returned.
Consider the great political and turmoil and economic costs caused by the shortage of oil over the past century. Water – a clear liquid gold, could be next.
- PowerShares Water Resources (PHO) up 20% year to date
- Claymore S&P Global Water (CGW) up 4.4% since May launch
- PowerShares Global Water (PIO) up 2.1% since June launch
- First Trust ISE Water (FIW) up 12.2% since May launch
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.