As one of the primary things humans need for survival, demand for clean, drinkable water isn’t going to go away. In fact, it’s a situation that’s becoming increasingly dire. This makes exchange traded funds (ETFs) that hold companies on a mission to produce clean water an opportunity.
Most of the world is made up of non-potable salt water, and the drinking water that humans need for survival accounts for about 3% of the earth’s water. Dan Denning & Chris Mayer for The Daily Reckoning say that most of that “water” is trapped in glaciers and icecaps, while the remaining 97% is unfit for consumption. [Quench Your Investment Thirst.]
Water-related ETFs don’t invest in water itself. Instead, they hold companies involved in various aspects of water production, including creating potable water, water treatment, and technologies and services directly related to water consumption.
Water is going to continue to be a major geopolitical theme and could grow into a major investment opportunity as solutions to this worsening problem are sought. [Water: The Next Big Business?]
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.