Water ETFs To Invest In 2016 – Best ETFs For Full Exposure To Water

2-Water ETFs to Invest in 2016 - Technical Analysis

There is a huge difference in technical analysis when it comes to ETFs-- Mostly because there is not much historical data available for them. ETFs are one of the newest forms of investing after all.

With that, here are the steps you can take in order to select the ETF that is right for you:

1- Start with a water company that you know of and like: If you are a frequent shopper of a specific water brand on the consumer side, or you use an industrial water utility you can start by looking into water ETFs which hold those shares within their basket

2- Select the ETF(s) which has exposure to both industrial and utility water companies: ETFs are all about diversification. So if you are going through the trouble of finding an ETF, it's best to select the one that covers all sectors

3- Do a quick research on other holdings of that ETF: You want to make sure that your ETF is a basket of juicy fruits. Or the gathering of ultra-sexy people. However you'd like to interpret the ETF metaphor!

4- Conduct technical analysis on the chart to see where the prices stand: While it is not necessary to use traditional technical indicators and chart patterns when it comes to ETFs, it is always good to checkout the chart and figure out the habits of it. Is this a cycling ETF? Has it been moving up since its formation? Is this a good time to buy or should you wait for it to go lower?

Voila! You've got yourself an ETF!

3-Water ETFs to Invest in 2016 - Invest Diva's Picks

After conducting the steps above, I selected the following Water ETFs to invest in 2016 for my own portfolio:

1- Guggenheim S&P Global Water ETF (CGW)

Focuses on 50 global companies that specialize in water-related business activities. The vast majority of the CGW is weighted in industrial stocks such as Pentair plc (NYSE: PNR) and utilities such as American Water Works Company Inc (NYSE: AWK).

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