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.
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.
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