Water as a Socially Responsible Investment Vehicle

Waterdrops After Rain

A fundamental necessity for ALL life forms on earth is clean, potable water. Yet sustainable sources of fresh water are in limited supply, particularly in poorer areas of the world.  Water is the ONLY resource that is not replaceable with another – oil can be made obsolete through the use of new, renewable energy sources, food sources can be substituted one for another, but pure water has no equal.

According to the United Nations, two thirds of all nations will be water stressed in the near future, and nearly 1.8 billion people suffer from water scarcity.  Alhough the earth is mostly water, only about 3% of it is fresh.  Investing in the creation of new technologies that can create fresh water from other sources, such as fog and sea water is not only socially responsible, it is potentially very lucrative as well.  Other areas where extensive research efforts are focused include new, sustainable ways of managing the existing water supplies without degradation of the local ecosystems, water conservation methods, and new methods for water transportation and delivery.


According to the GreenMoney Journal, funds and ETFs invested in water resources include the Claymore S&P Globale Water Index ETF, Dow Jones US Water Index,ISE-B&S Water Index, Janney Global Water Index,  New Kinetics Water Infrastructure Fund, Praetor Global Water Fund,Powershares Water Resources ETF,Palisades Water Index, and the S&P Water Index.

Some key growth technologies for investment include desalinization plants and technology (MoneyWeek recommends Halma (HLMA)), water quality measurement, leak detection (yes, a lot of the world’s water seeps into the earth through leaky pipes), creation of water from fog, water conservation, and water purification.

One thing is for certain, simply building more dams is NOT the answer!
[Image Credit:  emrank at Flickr under a Creative Commons license]