Water Stocks To Buy #5 – PowerShares Water Resources ETF
Given just how many different water stocks there are, investors may be better suited in a broad portfolio. With nearly $1 billion in assets, the PowerShares Water Resources (PHO) is the largest exchange-traded fund (ETF) that covers the sector.
PHO tracks the Nasdaq OMX U.S. Water Index, which focuses on companies that create products designed to conserve and purify water for homes, businesses and industries. Investors are treated to a who’s-who of 29 different water firms — including all the picks on this list. Given that breadth of holdings, PHO makes an ideal play on the water stocks theme.
Performance of the ETF has also been good, averaging about 10.32% annually since PHO’s inception in 2005. That’s performance has managed to beat the S&P 500 by 3% during that time. Helping that performance is the fund’s relatively low expense ratio of 0.60%, or $60 per $10,000 in invested.
All in all, for those investors looking to buy a basket of water stocks, PHO’s a great option.
At the time of publication, Levitt had no positions in the stocks mentioned.