Water ETFs: A Liquid Asset Play | ETF Trends

Sources for fresh, clean water are scarce. Only 3% of the world’s water is fresh. Global warming and growing populations may make this resource even more scarce. Water exchange traded funds (ETFs) are an easy way to play the search for new sources of drinkable agua.

Kevin Grewal for Minyanville reports that at current global population growth rates, it’s expected that demand for water will grow by nearly 6% annually. The need will likely be most pressing in Asia, particularly India and China. [Water ETFs for a Global Crisis.]

Alan Wheatly for The New York Times reports that a shortage of water in Asia could stunt the growth of these economies if it gets much worse. To address the issue, the Mekong River Commission, made up of Thailand, Laos, Cambodia and Vietnam,  called a special summit meeting.

The commission’s leaders suspected that China was hoarding water behind dams it has built on the Mekong, exacerbating the effects of the drought. China has proved this to be false, but the story illustrates how tight the water supply is in this area of Asia, and how precious the resource is becoming.[Water ETFs To Play A Dwindling Resource.]

CNBC has a series on the water crisis that’s worth watching, as well.

For more stories about the water shortage, visit our water category.

  • PowerShares Water Resources (NYSEArca: PHO): The largest water ETF, focus is on U.S. companies.
  • PowerShares Global Water (NYSEArca: PIO): Focuses on United States, Canada, Finland and Switzerland.
  • Guggenheim S&P Global Water (NYSEArca: CGW)Focuses on United States, United Kingdom, France, Japan and Switzerland.

Tisha Guerrero contributed to this article.

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.