Kent Croft, portfolio manager at Croft Investment Management, believes water utilities are attractive for investors with conservative portfolios. Others, like Shawn Hackett, president, Hackett Financial Advisors, argues that water conservation and lower water use could diminish utilities’ revenues. Sharlene Leurig, senior manager, water program at Ceres, though, contends that water prices will likely rise in the future to better reflect the basic fundamentals of supply and demand. [This Water ETF Could Rally]
While water is a resource, investors should not expect the water industry to act like other commodity stocks, according to Twibell.
“Water is not some place people go when there’s a big commodity boom or inflation,” Twibell added. “It’s not on people’s radar screen…. I look at it like tech, it moves part and parcel with the rest of the market,” he said.
PowerShares Water Resources Portfolio
For more information on the water industry, visit our water category.
Max Chen contributed to this article.