Why Invest in Water?

LOW COST FUNDS: Water could prove the most profitable commodity investment as demand for fresh water has increased at more than twice the rate of global population growth

Kenneth Lamont 21 April, 2015 | 3:38PM

 

 
 
 

Kenneth Lamont: The main investment thesis underlying an investment in global water equities revolves around the scarcity of fresh water as a commodity. Indeed, over recent years demand for fresh water has increased at more than twice the rate of global population growth, leading to dramatic predictions of future shortfalls between supply and demand. 

Additionally, fresh water resources are not evenly distributed across the globe, with even highly developed regions such as California, not immune to crippling shortages. This environment is likely to provide an increasing number of opportunities for companies involved in the treatment and distribution of water globally. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares Global Water ETF USD Dist GBP3,780.00 GBX0.13
Lyxor World Water ETF Dist A/I GBP3,809.50 GBX-0.03

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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