Water, Water ETFs Everywhere, and New York Has Not a Drop To Drink | ETF Trends

Climate change is threatening the water supply around the world and leading cities to rethink their infrastructure – something that could be a boon to those exchange traded funds (ETFs). Global warming is challenging the ways people think about designing and operate their facilities.

Case in point is New York City’s tap water, which consistently gets rave reviews as being “better than bottled.” But it’s currently under threat to become a casualty of climate change as warmer temperatures threaten mountain reserves that more than nine million people depend upon, reports Jim Efstathiou Jr. for Bloomberg.

Intense storms because of climate change are sure to affect the quality of tap water, as rains mix silt and mud into reservoirs. New York City may be required to filter all of the water coming into the tap water, in defense against pollutants, microbes, excess turbidity and bacteria.

Development is the biggest threat to the health of the water systems and the people who thrive on them, as fertilizers and bacteria can flow into the water. Since 1988, around $2 billion has gone toward sewage plant upgrades and programs to help farmers keep their animal wastes out of the stream of things. Expenses are sure to rise, and certain ETFs can help you harness this cause.

  • iShares S&P Global Infrastructure (IGF), down 13.8% year-to-date
  • Macquerie/First Trust Global Infrastructure/Utilities Dividend Income Fund (MFD), down 14.1% year-to-date
  • PowerShares Water Resources (PHO), down 8.8% year-to-date
  • Claymore S&P Global Water (CGW), down 13.3% 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.