Powershares Water Resources Portfolio - (PHO)

Water, water everywhere, and not a drop to drink...

Powershares Water Resources Portfolio - (PHO)
Photo by Rose Galloway Green / Unsplash

After my Random Thoughts About Trends post, I decided to take a deeper look at one of the Water ETFs available. I did a quick check on the Powershares Water Resources ETF (PHO) and its holdings. Despite a small correction between March and June 2006, PHO has been steadily marching upward. I might consider adding this ETF to my 401K account.

(c) Stockcharts

In case you are wondering, here's what the ETF seeks to accomplish:

The investment seeks results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Palisades Water index. The fund normally invests at least 80% of total assets in American Depositary Receipts and common stocks of companies in the water industry. In pursuit of its objective, it may invest at least 90% of total assets in American Depositary Receipts and common stocks that comprise the Palisades Water index. It is nondiversified. [via Yahoo]

2024 Update

It's nice to take a trip down money lane and see where I screwed up and where I was lucky; I sometimes confuse being smart with luck. PHO is one of these small-time winners if you hold it for a long time. I should've bought a few shares of it and ignored it for almost 20 years.

In fact, it's doing better than FXI which is pretty interesting considering PHO is concentrated around one industry and FXI has many different types of industries.

On the long-term chart, from inception, PHO is ahead. In fact, it's making all-time highs (ATH), and the last time it did that was in mid-May 2024.

(c) neuralmarkettrends.com

Zooming in, this chart looks pretty good BUT it's not a high-flying performer like NVDA. PHO is up almost 10% for the year. It's been on a solid upward trend since mid-2016. It even has a 0.52% dividend yield!

(c) neuralmarkettrends.com

This ETF is a boring and quiet ETF, not one to get rich on but one to use to build a stable portfolio.

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