As water-related investing gets more and more attention, exchange traded funds (ETFs) are looking to get a piece of this $400 billion global industry.

With many media reports treating water as a scarce natural resource in danger of depletion, Katie Southwick for Advisor Perspectives explains why they feel opportunities exist in infrastructure focusing on water recovery, purification and delivery.

Despite the earth comprising nearly 80% water, only 3% of it is fresh. On top of this, only 1% of the fresh water is available for consumption. With a growing demand for water, water infrastructure is an industry with vast amounts of investment opportunities.

The Environmental Protection Agency (EPA) estimates that the United States needs $500 billion of water infrastructure investment over the next 20 years. Globally, infrastructure investments are well under way, as China is expected to spend roughly $120 billion in water infrastructure in only the next few years.