Water ETFs

The abbreviation ETF means exchange traded fund and is a stock market based investment. This type of investment has the goal of matching an index, for example the S&P 500 or Nasdaq. Or, an ETF may look towards matching the performance of a commodity or a specific market category. Water ETFs are gaining in popularity with investors choosing this type of investment. In general, exchange traded funds are more appealing to certain investors than simply buying and selling shares of stock. The structure of an ETF is diversified, keeping costs and turnover low. While the shares that comprise an ETF are sold on the open market to anyone, ETFs themselves are usually targeted by big investors. Usually they are a long term investment.

When it comes to water ETFs, the term many investors are using is blue gold. This is because when looked at from the point of view of an investment professional, water is a viable investment because it is becoming more scarce and polluted with time. As mentioned previously, many investors who choose ETFs are large, therefore they have the resources to take advantage of the latest trends in investing. Examples of water ETFs include the First Trust ISE Water Index Fund and the PowerShares Water Resources Portfolio, to name just two.

If you are considering an investment in water ETFs, you may be unsure of which fund is right for you. The advice of an experienced investment advisor is always a wise idea. Hiring an advisor can help you make the best decisions possible without taking over the management of your funds. Unlike managed money funds, using the services of an investor gives you the final say on what to invest in, how much to invest, and so on. Your advisor can educate you further on the water ETFs out there and tell you what he or she believes to be your best bet.

Some of the water ETFs are U.S. based while others are based in other countries. Whether you want a domestic ETF, a foreign one or both is a decision that should be based on your investment goals. And of course, if you have an advisor you can get advice on which exchange traded funds are the smartest choices based on your location, how much you have to invest, whether you plan to hold the ETFs for a long term basis and various other factors. One thing is for sure, water is a precious resource all over the globe, so this investment type is unlikely to lose popularity anytime soon.

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