Toby Smith dives into water ETF
“We’ve been tracking the water industry for a while and it’s been crystal clear that water is an area we want to dive into,” says Toby Smith in his ChangeWave Investing. Here, he looks at a water-focused ETF.
“Water is often taken for granted, but that is changing. A combination of global profitable growth and years of neglect are main to a tidal wave of demand for water infrastructure and various technologies.
“It’s forecasted that by 2025, nearly two-thirds of the global population will habitable in countries where water will be a scarce commodity. Climate change could exacerbate the problem. Clearly, water issues cross all boundaries.
The water industry combines the best attributes of a good defensive strategy coupled with many ‘offensive’ plays. From a growth perspective, spending on water projects at all levels is on the upswing due to years of infrastructure neglect
“One great way for all investors to participate is by investing in an ETF with a water focus, such as PowerShares Water Resources (NYSE: PHO).
“The beauty of that water ETF is that it gives us exposure to each of the companies that were highest rated in our survey (comprising approximately one-third of the PHO holdings). PHO plus has a well-balanced portfolio, with no loner stock representing more that 4% of the total. IN our view, it’s clear that the water industry will see above-average growth well into the future.”
Each day, Steven Halpern’s TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation’s main financial newsletter advisors.
Original post by Steven Halpern
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