I’m not sure I’ve mentioned it here before, but one of my favorite investment themes is water. There are many tailwinds behind the theme, ranging from declining precipitation in the U.S. southwest, to upgrading of water supplies worldwide in both developing and developed countries, but water is one of the more obvious one-decision investments I have made in some time.
My holdings? I currently do it through ETFs, with positions in PowerShares’ PHO and Claymore’s CGW. You can find more by following the links.
Downbeat but useful reading here.
Related posts:
I think you mean, “Making Money from Droughts”
Paul
What’s your hold timing for these. I suspect very long term, but just checking.
I owned CGW when it first came out, held it for about 5 months but it seems the volume never picked up much and I felt like it was too early to get in on water yet. Sold it for about even but will probably come back to it in the near future
I read the post title in my reader as “Making Money from Doughnuts” and immediately clicked through.
just buy wtr.. This is a no brainer.
What about the PowerShares ETF “PIO”. Its for global water companies rather than just US companies.
Nitin, the best thing to do is to research each ETF’s holdings and see what works for you.
Personally, I have owned PHO since January, 2007. I have found it works best for me. It is more balanced in its holdings and not as concentrated in a couple of specific stocks like CGW (20% of which is VEOLIA & SUEZ)
As far as global exposure, I am satisfied with PHO’s coverage. I felt the PIO ETF was too concentrated in Japan and France.
To invest in water one must look beyond one single industry. Utilities, infrastructure, industrials, metering and even the healthcare sector all come together to provide potable water. For the number of securities I want to hold in my Roth IRA, an ETF is the perfect answer to gaining exposure to water. I get coverage in all of the industry groups mentioned above on a global scale.
Long PHO
BTW,
PHO assets – $2 billion
CGW assets – $284 million
WTR has been going sideways for a year. In Oct. last year it was 23.. now it’s basically 23.
Check out BWTR after earnings.