5-Star ETFs Poised to Pop: PowerShares Water Resources

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares Water Resources Portfolio (NYSE: PHO) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PowerShares Water Resources and see what CAPS investors are saying about the ETF right now.

PowerShares Water Resources facts

Inception

December 2005

Total Assets

$805.6 million

Investment Approach

Seeks investment results that generally correspond to the price and yield of the NASDAQ OMX US Water Index. The underlying index seeks to track the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses, and industries.

Expense Ratio

0.62%

Dividend Yield

0.8%

1-Year / 3-Year / 5-Year Annualized Returns

30.8% / 7.4% / (1.7%)

Top 3 Holdings and Portfolio Weight

Flowserve (9.2%)
American Water Works (8%)
Pentair (7.7%)

Alternatives

PowerShares Global Water
First Trust ISE Water
Guggenheim S&P Global Water

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 99% of the 827 members who have rated PowerShares Water Resources believe the ETF will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, All-Star FutureMonkey, succinctly summed up the bull case for our community:

Many of the players in this ETF have been held down by the construction downturn during recession, etc and yet has stayed close to the [S&P 500] broadly. Water and water infrastructure is increasingly important locally and globally. ... Patient investing for this one, no short term money deployed.

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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

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