Water resource companies to invest in

Water investors can invest directly in water-related stocks, too. Life Insurance. Mergers and Acquisitions.

How investors can help tap into water opportunities

We know water is the source of life. But it can also be a source for portfolio diversification. Sounds strange, we know but remember: Like gold and oil, water is a commodity — and it happens to be rather scarce nowadays. So, as with any other scarcitythe water shortage creates investment opportunities. Saltwater cannot be used for drinking, crop irrigation, or most industrial uses. Rapid industrialization and increasing resoucre use have contributed to worldwide water shortages.

Barclays uses cookies on this website. They help us to know a little bit about you and how you use our website, which improves the browsing experience and marketing — both for you and for others. They are stored locally on your computer or mobile device. To accept cookies continue browsing as normal. Global water supplies are under pressure, but there are innovative companies aimed at helping to efficiently preserve, treat, and recycle water. Here, we examine how you can invest. Please be reminded that this article serves to illustrate how it is possible to invest in line with this theme.

We know water is the source of life. But it can also be a source for portfolio diversification. Sounds strange, we know but remember: Like gold and oil, water is a commodity — and it happens to be rather scarce nowadays. So, as with any other scarcitythe water shortage creates investment opportunities. Saltwater cannot be used for drinking, crop irrigation, or most industrial uses. Rapid industrialization and increasing agricultural use have contributed to worldwide water shortages.

Pollution also highlights the need for clean water. In the U. Overseas, highly publicized incidents in Russia, China, and elsewhere demonstrate that pollution isn’t limited to the West. Of course, fouled water supplies further limit the amount of freshwater available for human use.

Here are some of the more popular indexes designed to track various water-related investment opportunities:. The Bloomberg World Water Index and the MSCI World Water Index provide a look at the water industry from an international perspective, although it can be rather difficult to find current information about either index.

There are also a variety of utility indexes that include some water stocks. A look at the holdings of any of the water indexes provides an easy way to begin your search for suitable investment opportunities. Companies from blue-chip stalwart General Electric to small-cap Layne Christensen are all seeking a piece of the water market.

In addition to direct stock purchases, some of the larger firms offer dividend reinvestment plans. When it comes to bottled water, the market is growing internationally. Demand is on the rise from China to Mexico, following in the footsteps of the spike in U.

Estimates suggest that within the last ten years American per-capita consumption of bottled water has doubled water resource companies to invest in the average American drinks approximately bottles of water a year. On the desalination front, some countries currently rely on desalination for at least part of their freshwater consumption needs. If stock picking doesn’t interest you, ETFsmutual fundsand unit investment trusts UITs also provide plenty of opportunities to invest in water.

The iShares Dow Jones U. Based on popularity, new alternatives are slowly emerging. Water Equities portfolio. Recent years have seen an upswing in the demand for investments that seek to profit from the need for fresh, clean water. There are currently numerous ways to add water exposure to your portfolio; most simply require a bit of research.

Opportunities to invest in this scarce resource are flowing freely, so dive in! Renewable Energy. Top ETFs. Your Money. Personal Finance. Your Practice. Popular Courses. Login Newsletters. Commodities Oil Gold Metals. Investing Commodities. The Dow Jones U. It contains over 35 stocks. Compare Investment Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

Related Articles. Commodities Commodities: The Portfolio Hedge. Partner Links. Hotelling’s Theory Hotelling’s theory posits that owners of non-renewable resources will only produce supplies if they can yield more than available financial instruments. Exchange of Futures for Physical EFP Definition An exchange of futures for physical EFP is a private agreement between two parties to trade a futures position for the underlying actuals.

Fungibles Goods Definition Fungibles goods refer to securities or other items that are equivalent such that, for practical purposes, they are interchangeable.

Investing in Water / Top 5 WATER ETFs to Buy

Choosing for water

Mergers and Acquisitions. When it comes to bottled water, the market is growing internationally. There are currently numerous ways to add water exposure to your portfolio; most simply require a bit of research. Junk Bonds. Penny Stocks. It also invests in large-cap water companies, with over 50 companies represented in the fund. If stock picking wqter interest you, ETFsmutual fundsand unit investment trusts UITs also provide plenty of opportunities to invest inest water. Cramer’s Blog. Based on popularity, new alternatives are slowly emerging. Water is a big supply and demand market, resouurce deep research is required to find out who needs water most, and who needs it. Any investment with land and water tends to attract lawyers and contracts, often complex ones. With the water resource companies to invest in of water-related ETFs, water investing strategies companiies to be complex and are highly regulated. Disability Insurance. Credit Cards. Once you have the right to use the water you can charge companies and governments think farms and towns and cities to access the water covered in your investment contract.