What Are Water ETFs?
There are a number of exchange-traded products that offer exposure to companies in the water industry. The most popular ETF in the space is the PowerShares Water Resource Portfolio (PHO) which is roughly comprised of 30 companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption. The second largest offering is the PowerShares Global Water Portfolio (PIO), which offers similar exposure as PHO, except with a more diversified portfolio of international holdings; top allocations by country include the U.S., France, United Kingdom, Japan, Brazil, and Singapore.
Guggenheim offers the S&P Global Water Index ETF (CGW), which is comprised of 50 companies, split equally between water utilities and water equipment and materials companies. The least popular offering in the space is the First Trust ISE Water Index Fund (FIW); this ETF holds a basket of approximately 40 companies that derive a substantial portion of their revenues from the potable and wastewater industry.