As the global water supply becomes increasingly unbalanced, the case for “hydrocommerce” becomes more clear. Investors can access efforts to fix this dire situation with water-industry focused exchange traded funds (ETFs).
The need for clean water is a pressing one. Based on recent surveys, groundwater levels, reservoirs, lakes and other forms of water capture and supply sources are running dangerously low around the world. Worse, investment in water infrastructure is nearly non-existent – the EPA estimates that the United States alone is $600 billion behind in water system upgrades.
In other areas of the world, it’s even worse. Countries with little or no infrastructure, such as Haiti, are in serious need of usable water. Natural disasters like earthquakes only exacerbate the situation. [Are water ETFS the next investment wave?]
This presents an opportunity for investors who want exposure to an issue that’s getting more and more attention, says William S. Brennan for Investor Ideas. With global water shortages looming and the availability of potable water continuing to dwindle, there will be significant opportunities for the companies that provide the solutions to these issues. [How does one bridge water with profits?]
What’s more, a larger investment movement will focus on areas where water shortages are more pressing and where there is access to many sub-sectors that are involved in its extraction, treatment, regulation, metering, conveyance and resource management on both the domestic and global stage.
For more stories about water, visit our water category.
- PowerShares Water Resources (NYSEArca: PHO)
- PowerShares Global Water (NYSEArca: PIO)
- Claymore S&P Global Water (NYSEArca: CGW)
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.