The commodities market looks poised for growth. There is economic uncertainty, rising geopolitical tensions, as well as oil and natural gas prices rising ever higher.
Whether you fancy yourself a commodities investor or not, there is clearly something to investing in some of the most important commodities in the market, even if just used as a vehicle to park some of your money.
However, despite the popularity of commodities like gold, silver, or even oil, there is one commodity we simply cannot live without, water.
Investing in water, or as it has been referred to, blue gold, is an increasingly popular investment option as many become fearful about our ability to make sure mankind has enough to support literally everything we do.
It is often thrown around that without this or that, societies around the world would come to a screeching halt, but when it comes to water, there truly are no bones about it.
Most don’t quite understand how much water we consume on a daily basis, many of us assume it is a never ending resource simply because the planet is over 70% water. Let’s put it into perspective.
In reference to a cup of coffee, which many Americans need to get their day started, it takes about 36 gallons of water to get from the bush to the table. When it comes to the food we eat, like a steak for example, it’s much more costly in terms of the amount of water needed.
Around 4,000 gallons of water to produce the meat we consume, from just one large cow. With all of that, plus the water we use to drink or shower, we consume a ton of water.
Even some of the most well-known and respected investors are sounding the alarm about investing in blue gold. Michael Burry, the famed investor who famously predicted the financial collapse of 2008 is one of those who is positioning himself to take advantage of the possible water crisis.
So, how can we align ourselves with investors such as Michael to invest in the world’s most valuable resource? Easy, when you have a tool such as Magnifi in your investing toolbox. Chat with your AI-powered investing assistant to get started by looking for water-related ETFs.
After showing Magnifi our interest in the water industry, we have three options that stand out among the many others out there.
First up is the Invesco Water Resources ETF (PHO). This ETF gives you access to some of the top names in the industry without the investor having to comb through the many, otherwise lesser-known water stocks in the market, in anticipation of the growing need to both have clean water for the world to drink and also get access to water for the agricultural industry in order to create and maintain the world’s food sources.
Some of the top holdings in this ETF are Ferguson (FERG), Danaher (DHR), and Ecolab (ECL).
The next blue gold ETF you can consider is Global X Clean Water ETF (AQWA). One of this fund’s top holdings actually happens to be a great growth prospect in an otherwise low growth industry. American Water Works (AWK) has a proven track record of slow, but steady growth as it has managed to post double-digit annualized compounded earnings growth for many years.
Investors in AQWA will not only be exposed to companies like AWK, but will also get the added benefit of dividend growth as well.
Finally, we have the First Trust Water ETF (FIW). While many of this fund’s holdings are similar to the previous two, the fees may be structured differently. Let’s compare all three based on this parameter and see which of the three comes out to be the cheapest long-term investment option.
Your best bet for investors who are hyper-conscious of the fees associated with owning an ETF is AQWA with an expense ratio of .50%, which can really add up over the life of your investment.
This is just one of the many metrics Magnifi allows you to compare across investment options.
With the AI-powered language model, simply tell the app to “Compare the fees of PHO, AQWA, FIW” or any ETF of your choosing and instantly know which fund offers the lowest fees. The same is true when looking to compare fund or stock returns to one another.
Access to this can be yours when you sign up for the All Star Funds VIP newsletter, which comes complete with a FREE trial offer to Magnifi. Give this money saving tool a try today and wonder why you ever invested without it. Sign up today…