Catch a New Wave in Water ETFs

I wrote about the first water ETF, the PowerShares Water Portfolio(PHO) a year and a half ago when it first listed. I bought the fund a couple of days later for myself and for clients, and still own it. But there's a new water ETF on the block, and it already looks mighty tempting for both its broader field and narrower focus.

The water theme is simple to grasp:

• Demand: Demand for water has grown at twice the rate of the population, according to the World Resources Institute.
• Supply: Only 3% of the world's water is drinkable.
• Spending: Many Third World countries that previously have had trouble accessing good drinking water are making huge strides in modernizing their water infrastructure.

With those large forces in play, I believe there's plenty of room for another investment product. Claymore just brought public a new water ETF on Monday that mimics the S&P Global Water Index, which is vastly different from the Palisades Water Index that underlies PHO. ...