When thinking of ETFs in t he commodity sector most investors think of Oil and metals. There is a commodity that investors may not be aware of that is posting good returns. That commodity is water There is a growing world demand for clean water worldwide. In the US the aging infrastructure that delivers water needs to be replaced.
One ETF that takes advantage of these investment opportunities is Powershares Water Resources (PHO). With many exchange traded funds down or just treading water for the year so far, PHO is performing above average. As of July 6th it is up over 9% which is not bad for the recent market conditions. While gold and oil related ETFs are currently performing better, their volatility is much greater and next month could be a different story.
The Powershares Water Resources Portfolio is based on the Palisades Water Index
