Topic: How To Invest

Pat: Do you have any recommendations for specific water stocks? Also what do you think of the iShares S&P Global Water Index ETF? Thank you.

Article Excerpt

We haven’t found any water-focused stocks we recommend as buys. That’s mostly because the water business has limited growth prospects in developed countries, and is subject to a lot of regulatory hurdles. It may offer more opportunity in developing countries, many of which are in desperate need of clean water, but investing in these countries exposes you to political risk. However, here’s a look at the iShares S&P Global Water Index ETF: iShares S&P Global Water Index ETF, $21.31, symbol CWW on Toronto (Shares outstanding: 1.5 million; Market cap: $32.0 million; ca.ishares.com), aims to match the performance of the S&P Global Water Index. The index is made up of 50 stocks selected from companies listed on global developed market exchanges. The companies are picked based on the relative importance of the global water industry to their businesses. The index is designed to have balanced representation from different parts of the water industry. Two groups are represented in the index: 25…