Trang Ho from Investor’s Business Daily takes a look at the recent performance of Water ETFs in “Water ETF Performs Swimmingly vs. S&P”.
According to the U.S. Drought Monitor, 43% of the nation is experiencing weather conditions that range from abnormally dry to exceptionally drought. Water shortages could signal a potential boom for companies engaged in water treatment, equipment, technology, and services.
The most popular of the Water ETFs is the PowerShares Water Resources Portfolio (PHO). This fund is up 2% year to date and up 9% in the past twelve months. PHO has a 0.66% expense ratio and its largest holding is Tetra Tech (TTEK) with a weight of 4.8%.
The Claymore S&P Global Water Index (CGW) is the laggard in the group and has lost 10% year to date and 1% over the past twelve months.
The most thinly traded Water ETF is First Trust ISE Water Index (FIW). This fund boasts the largest returns at 4% year to date and 11% over the past twelve months.