How can I invest in just water?
There are two main ways to invest in water stocks: invest in individual stocks or invest in ETFs.
Some major water ETFs include:
- First Trust ISE Water Index Fund (FIW)
- Invesco Global Water ETF (PIO)
- Invesco S&P Global Water Index ETF (CGW)
- Invesco Water Resources ETF (PHO)
- Tortoise Water Fund (TBLU)
Is investing in water a good idea?
Investing in water could be a good long-term bet for those concerned about its sustainability. It is also a good option for environmentally focused investors. … The Invesco S&P Global Water Index ETF (CGW) holds water utilities, infrastructure, equipment, instruments and materials companies.
Can you invest in fresh water?
How to invest in water. There are multiple ways to invest in water. You can buy shares of companies that produce water-related equipment, such as pumps, meters and filters, invest in water utilities and environmental companies that clean, purify or distribute water.
Can you buy water as a commodity?
The new scheme was announced in October 2020, triggered by the region’s severe heat, wildfire and droughts. While this could clear up uncertainty around water prices, treating water as a tradable commodity puts basic human rights in the hands of financial institutions and investors.
Are water ETFs a good investment?
Water ETFs have outperformed compared to the broader market in the past year. The water ETFs with the best 1-year trailing total returns are FIW, PHO, and CGW. The top holdings of these ETFs are Danaher Corp., Waters Corp., and American Water Works Company Inc., respectively.
Should water be treated as a commodity?
The 1992 Dublin Principles declared water an “economic good” for the first time and stated that trading water as a commodity is the most efficient means of managing scarce water resources. Although numerous global governments and organizations and several transnational corporations support this view, others disagree.
How does a water company make money?
The utility business is not like most other businesses. … That’s right, utilities do not earn profits on the products they sell—gas, water, and power are provided “at cost” to consumers—but rather from the investment in the assets (the pipes, substations, transmission lines, etc.) that are used to provide the service.
How can we benefit from water shortage?
There are so many different companies globally helping to combat the water-scarcity crisis—from a variety of sectors too. They are developing new treatment technologies, smart water networks, desalination systems, non-revenue water products, metering solutions, outsourcing systems, and testing equipment.