Watering the World
In its latest (June 18, 2007) edition on page 17, BARRON'S mentions that more than a billion people around the world are without decent drinking water, which helps explain the flood of exchange-traded funds now focusing on international water interests.
The latest is the PowerShares Global Water Portfolio (ticker: PIO), which began trading Wednesday along with four other new PowerShares ETFs. A Texas water consultancy, Palisades Water Index Associates, developed Global Water's underlying index, a sector-weighted list of 41 international companies providing water or treating it, plus firms making technology or offering services related to water.
The PowerShares fund will update its index quarterly to reflect public offerings that can make a splash, and to rebalance sector weightings as new projects and regulations move stocks.
Competitor Claymore S&P Global Water Fund (ticker: CGW) updates holdings once a year. So far, it has quenched investors' thirst nicely, rising nearly 3% just since its launch in May. It's based on the S&P Global Water Index, a 50-stock list. Half the companies represented are water utilities or infrastructure plays, and the other half produce water equipment and related materials.
Other water ETFs focus on U.S. companies, some with global reach. PowerShares Water Resources Portfolio (ticker: PHO), established in late 2005, is up about 12% so far this year, and First Trust ISE Water Index Fund (ticker: FIW) is up nearly 7% since its May listing.
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The latest is the PowerShares Global Water Portfolio (ticker: PIO), which began trading Wednesday along with four other new PowerShares ETFs. A Texas water consultancy, Palisades Water Index Associates, developed Global Water's underlying index, a sector-weighted list of 41 international companies providing water or treating it, plus firms making technology or offering services related to water.
The PowerShares fund will update its index quarterly to reflect public offerings that can make a splash, and to rebalance sector weightings as new projects and regulations move stocks.
Competitor Claymore S&P Global Water Fund (ticker: CGW) updates holdings once a year. So far, it has quenched investors' thirst nicely, rising nearly 3% just since its launch in May. It's based on the S&P Global Water Index, a 50-stock list. Half the companies represented are water utilities or infrastructure plays, and the other half produce water equipment and related materials.
Other water ETFs focus on U.S. companies, some with global reach. PowerShares Water Resources Portfolio (ticker: PHO), established in late 2005, is up about 12% so far this year, and First Trust ISE Water Index Fund (ticker: FIW) is up nearly 7% since its May listing.
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posted by Bob Moser at
1:12 PM
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