A Glass Of Water For Your Portfolio

A recent study from the Natural Resources Defense Council (NRDC) predicts that one-third of counties in the U.S. will be at risk of water shortages by 2050. Fourteen states and some 400 counties located in the Great Plains and South West will experience “extremely high risk” of water shortages during that time period. Water problems aren’t just a local phenomenon. Population growth in the developing world is also having its effect on water consumption. The World Bank estimates that the majority of Indian cities will become dry as a bone by 2020 as groundwater supplies are being used at alarmingly rates. Filtration, new pipes, desalination, and pollution controls all need to be addressed with regards to the world’s growing water problems. For investors with long enough timelines, investment in the sector is a must. The PowerShares Water Resources PHO is the largest and most “liquid” way to play the water sector. The fund focuses on domestic companies fighting the problem. For a global tilt, the Claymore S&P Global Water (CGW) and PowerShares Global Water PIO make excellent choices. Disclosure Statement: The author has a long position in PHO