Reasons why and How to Invest in Water Commodity?

              How to Invest in Water Commodity?

Water that is clean and suitable for drinking is essential to life reasons why I have done an extensive research on how to how to invest in water commodity. A purification system provides several benefits. It is recommended by the US Center for Disease Control to drink a minimum of 3.7 litres for adult men and 2.7 litres for adult women daily from all sources because of the several benefits to health.

Here are some most important reasons to consider investing in purified water.

Plastic Disposal Minimization

Bottled water in plastics instead of drinking from the tap contributes to pollution - because disposing plastic bottles fill up the landfills. The plastic that holds it is not healthy for the planet. To solve this problem, a treatment system provides clean, potable water right from the tap even in individual homes.

Water Appliances Stay Longer

Appliances can also benefit from high quality water. Softened water will prolong the efficiency of appliances, which will save on costs in the long run. There will be less need for soap and detergent to clean appliances and make them last longer. Using cold water to wash dishes and clothes will not interfere with their performance.

According to extensive research that I have carried out, when laundry machines and dishwashers were tested to run for more than 241 cycles, washers using treated water had almost no scale buildup, while those with untreated variety needed scale removal so they could work properly.

When it comes to water heaters, researchers discovered that the heater remained to be efficient until about 16 years when using treated water. On the other hand, running untreated water cuts the efficiency of the heater by up to half because of the buildup of scale.

Essential to Health

There is a clear connection between water and health. A good number of the leading causes of outbreaks are being linked to the water that affected the people drinking it.

Water that contains organic and inorganic matter can also cause serious health complications. Studies further reveal that high content of lead in drinking water have been linked with children's learning disabilities, delays in development.

Protects From Harmful Organisms

According to the Environmental Protection Agency reports (EPA), 90% of the water supply worldwide is not suitable for drinking unless properly treated.

More often than not, untreated water has micro-organisms that could cause vomiting and diarrhoea, among other illnesses. Thanks to advanced water purification systems, such microorganisms can be eradicated to make the water safe to drink.

The main approach on how to invest in Water Commodity is through Exchange-Traded Fund (ETFs)

. The idea of water as a speculative investment recently got a boost from the launch of Waterfind, an Australian futures exchange for trading in water. Since the exchange went live in late March 2014 many billion liters of water have changed hands through its online marketplace. Though that's a drop in the bucket in terms of global water reserves, it is still an important symbolic step in the commoditization of water as an investment vehicle.

But you don't have to live in Australia or learn about futures to add water investments to your portfolio. Some American exchange-traded funds offer exposure to companies and entities whose success rises and fall with the price of water.

·         First Trust ISE Water Index Fund (FIW) holds a global portfolio of companies that earn their revenue from the potable and wastewater industry, 90 percent based in the U.S.

·         PowerShares Water Resources Portfolio (PHO) is the biggest and most popular of these ETFs. Consisting of mostly small and mid-cap companies that produce products to conserve and purify water for business and industry, it includes well-known names such as American Water Works (AWK), Flowserve (FLS) and Toro (TTC).

·         PowerShares Global Water Resources Portfolio (PIO) is similar to PHO except that, per its name, it has a more global focus. Though American companies make up the largest allocation, the United Kingdom, France, Brazil and Japan are also well-represented.

·         S&P Global Water Index ETF (CGW) includes domestic and international companies and is half water utilities and half water equipment and materials companies

Conclusion

Installing a water treatment system at home is the easiest way to access clean water, which is critical to every individual's health. Not only is it the fast and easiest way to let a family stay healthy, but also the cheapest.

Aside from purifying drinking water, treating household water will help lengthen the life of water-using appliances. It may be expensive to install a water purification system, but has more advantages to the health of a family, as well as being more cost-efficient in the long run.