Invest in Water
The Claymore S&P Global Water Index ETF (AMEX: CGW) was introduced on the American Stock Exchange. The index consists of 50 companies and provides an even mix of stocks from two segments of the water industry; water utilities and water equipment. The expense ratio is 0.65 percent and the fund has underlying call/put options.
Worldwide demand for water is growing at twice the rate of the population, according to the World Resources Institute. Many developing countries with polluted water sources are investing capital to improve and modernize their water supply infrastructure. The intended beneficiaries for this spending are companies that manufacture water equipment, materials, and technology.
The Claymore Water ETF will compete head-to-head with the PowerShares Water Portfolio (AMEX: PHO). The top three holdings in the Claymore ETF are Veolia Environment, Suez, and Mitsubishi Heavy Industries.
May 18, 2007 12:46 PM | Category: Technology, Water