PowerShares Water Resources
Agriculture? Check. Metals? Got it. Oil? Yep, in there too. But what about water? The one natural resource that’s generally missing from many of the broader-based funds is exposure to the world’s most vital commodity — good old H2O.
Despite the fact that much of the world’s surface is covered by water, only about 3% of that is fresh, and the bulk of it is trapped as ice. That’s a huge problem, considering water demand continues to grow unabated as the global population rises exponentially. Analysts estimate that the world will see potable water futures contracts trading on worldwide exchanges in the near future.
Yet, even with the bullish long-term picture, many investors have zero exposure to the commodity. Which is why the PowerShares Water Resources (PHO) could be a great hard asset bet.
The fund is the largest in the sector and tracks 29 different companies associated with the water industry. These include filter and purifying companies, water utilities, and water specific equipment makers. The fund has also been blue gold for investors, outperforming the S&P 500 over the last year and annually since inception in 2005.
Expenses for PHO run 0.62%.
As of this writing, Aaron Levitt was long GNR.