The battle over water could be a boon to exchange traded fund (ETF) investors, but let’s hope no one loses their nose over it. Ouch!
Water’s future could offer opportunities for investors who think of it as a commodity, benefiting companies involved in the sale, purification, distribution and infrastructure of the element.
The Chicago Tribune reports that T. Boone Pickens, corporate bigshot and oil tycoon, has been buying up water rights in the Texas panhandle based on the belief that water is going to become scarce and salable. The logic is that climate change, shrinking lakes and rivers, mixed with population growth will transform water into a commodity.
New York’s tap water supply is already threatening to become a victim of climate change.