Email of the day on how to invest in water
With world population growing the need for clean water is growing as well. How can one invest in this sector?
Thank you for this question which comes up from time to time. Water is essential to life and in short supply where the majority of people live. However, for just that reason the majority of infrastructure is controlled by governments because it is difficult to pass through the full cost of building infrastructure to consumers. Nevertheless, there are a number of ETFs which invest in pipe, metering, waste management and utilities that offer exposure to the sector.
The UK listed iShares Global Water UCITs ETF remains in a reasonably consistent medium-term uptrend.
The US listed First Trust Water ETF has spent most of this year consolidating but continues to hold its progression of higher reaction lows.