Why This ETF Now Has Marquee Political Support | ETF Trends

These days, investors are hearing plenty about which assets could perform well under a Biden Administration and if the Democrats gain control of the Senate while maintaining a House majority.

However, investors engaged with water exchange traded funds, including the Invesco Global Water Portfolio (NASDAQ: PIO), may want to consider that the Trump Administration is prioritizing water infrastructure in significant fashion.

“President Trump is formally establishing an interagency Water Subcabinet that will streamline the Federal government’s approach to managing America’s water resources and work to upgrade our Nation’s water infrastructure, safeguard public health, and create jobs,” according to the White House.

Water investing is a good way to play a long-term trend as the world still needs to find sustainable sources of potable fresh water, especially with the specter of climate change. PIO features exposure to companies that are associated with global water utilities, infrastructure, equipment, instruments and materials.

Trump Refreshes The Case for PIO

It’s clear President Trump is taking water investments seriously and that could be meaningful for ETFs like PIO if he pulls off the upset and wins a second term.

“Water Subcabinet will identify actions to develop water supply reliability and improve water quality for urban, rural and agricultural communities, ensure successful restoration activities, and examine water challenges facing minority, low-income, and tribal communities,” according to the White House.

As the world reviews the effects of climate change, global population growth and inadequate or aging infrastructures, investors can consider water industry-related exchange traded funds to capture potential long-term opportunities.

PIO YTD Performance

“Trump is supporting opportunities to recruit, train, and retain our Nation’s water workforce to promote water infrastructure development and continue reliable operation of America’s water facilities,” notes the White House.

PIO “generally will invest at least 90% of its total assets in companies listed on a global exchange that create products designed to conserve and purify water for homes, businesses and industries,” according to Invesco.

The fund holds 53 stocks, three-quarters of which hail from the industrial and utilities sectors.

Trump’s “Executive Order directs the Water Subcabinet to coordinate with other Federal agencies to provide assistance and technical support to States, territories, tribes, local communities, and non-governmental entities to bolster our Nation’s water workforce,” according to the administration.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.

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