Trading Water ETFs
Water exchange traded funds (Water ETFs) are an interesting sub-group of ETFs. They track indexes composed of stocks of companies involved in water related business; like water purification, water bottling, irrigation, pump and filter manufacturing, water distribution, beverages, and so on. Water ETFs are very good instruments to diversify a portfolio, to make long-term investments and to passively invest in a growing industry.
Now there are a number of ETFs which track various 'water indexes', major ones include PowerShares Water Resource ETF and iShares Dow Jones US Utilities Index ETF. Some main indexes that water ETFs track are Palisades Water Index, Dow Jones US Water Index, ISE B&S Water Index, S&P 1500 Water Utilities Index, Bloomberg World Water Index and MSCI Work Water Index. These indexes differ considerably from one another in capitalization, composition and performance.
World water consumption and irrigation needs are growing daily and the demand for pure water is always on the rise. Thus investing in water ETFs can offer good returns. But the trader should be careful with his ETF picking and portfolio management. ETFs tracking a very small market/sector, can be riskier investments, and it is not wise to allocate a major part of the portfolio to these funds.
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Now there are a number of ETFs which track various 'water indexes', major ones include PowerShares Water Resource ETF and iShares Dow Jones US Utilities Index ETF. Some main indexes that water ETFs track are Palisades Water Index, Dow Jones US Water Index, ISE B&S Water Index, S&P 1500 Water Utilities Index, Bloomberg World Water Index and MSCI Work Water Index. These indexes differ considerably from one another in capitalization, composition and performance.
World water consumption and irrigation needs are growing daily and the demand for pure water is always on the rise. Thus investing in water ETFs can offer good returns. But the trader should be careful with his ETF picking and portfolio management. ETFs tracking a very small market/sector, can be riskier investments, and it is not wise to allocate a major part of the portfolio to these funds.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
posted by NobleTrading at
10:08 AM
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