With the droughts on the West Coast, and lead crisis expanding from Flint to the rest of the East Coast, investing in water companies sounds like a no brainer. To further back the opportunity, the genius from the movie “The Big Short” also has explained why water is the commodity to buy. Especially if you have passed your Financial Assessment test and are eligible to expand your investing portfolio. With that I finally sat down and wrote about the best water ETFs to invest in 2016, which we have been advising to some Invest Diva students. You don’t have to search no more!

Just as we do for forex and stocks, for our ETF picks I would also get help from the Invest Diva Diamond Analysis.

Water ETFs to Invest in 2016 – The Lazy Crab

1-Water ETFs to Invest in 2016 – Fundamentals

Do you take water for granted? According to experts including Michael Lewis, you shouldn’t.

Why invest in water?

Water is the foundation of life as we know it. However fresh, clean water can not be taken for granted anymore. While the amount of freshwater on the planet has remained fairly constant over time—continually recycled through the atmosphere and back into our cups—the population has exploded. This means that every year competition for a clean supply of water for drinking, cooking, bathing, and sustaining life gets more intense.

While nearly 70 percent of the world is covered by water, only 2.5 percent of it is fresh. The rest is saline and ocean-based. Even then, just 1 percent of our freshwater is easily accessible, with much of it trapped in glaciers and snowfields. In essence, only 0.007 percent of the planet’s water is available to fuel and feed its 6.8 billion people.

To sum it up, we are down to the basics of investing: Shortage of supply and increase of demand.

Why water ETF?

Exchange Traded Funds (ETFs) are some of the most cost-effective investing tools that give you exposure to a variety of assets within a category. And as I’ve explained here, investing in an ETF could be a better choice than a mutual fund to a home-based investor. So if you want to get in the water business without many resources, ETF is the way to go.