This article comes from the official account "Yingwei Financial Investing" of Wechat, author Tezcan Gecgil and translator Li Shanwen.

Water, arguably the most important natural resource on the planet, also provides market participants with a strong reason to invest-water industry companies are currently in a strong position and value and demand are expected to continue to grow in the coming years.

The global water intelligence agency Global Water Intelligence predicts their expectations for water value growth over the next few years:

"the value of the global water market, including the combined operational and capital expenditure of utilities and industrial water users on water and wastewater, is expected to grow from $770 billion in 2018 to $914.9 billion in 2023."

In addition to the growing value, as the global population continues to grow, the demand for water continues to grow. Research by Taikan Oki of the Institute of Industrial Science at the University of Tokyo shows that:

"the daily liquid intake per person is 1.5-3.0 liters. At the same time, each person needs 50-100 litres of water a day to ensure basic human health. In addition, in farmland, each person needs to consume 3-4 cubic meters of Rain Water per day to produce food for mankind. "

Considering that the world's population is about 7.594 billion, and the population continues to grow. On the annual World Water Day (March 22), the global media are also urging that the global water supply is under pressure.

However, human ingenuity has led to the emergence of innovative enterprises around the world dedicated to the protection, treatment and recycling of water resources. Infrastructure investment is also increasing significantly around the world, including the United States, which is expected to invest $109 billion a year in water infrastructure over the next 20 years.

To sum up, water resources is also an important financial asset, so it is a reasonable choice to include water companies in the long-term investment portfolio. Here are some ETF of related investments:

Invesco Water Resources ETF (PHO.US)

Current price: $44.20

52 week price range: $26.19-$45.50

Dividend yield: 0.41%

Cost ratio: 0.60%

The Invesco Water Resources ETF (NASDAQ:PHO) (PHO) provides investors with exposure to the water industry. Among the companies covered by the fund, some provide products to protect and purify water resources, while others provide services in the drinking water and wastewater industries. The fund, established in December 2005, is rebalanced quarterly and restructured every April.

PHO currently holds shares in 36 companies and tracks the Nasdaq OMX US Water index, and the top 10 companies in the fund currently account for about 55 per cent of total assets of $1.2 billion. As far as the industry is concerned, the fund is quite diversified, including 30.34% for machinery, 20.10% for water, 7.83% for medical equipment and supplies, 7.79% for construction products and 7.65% for chemical products.

American companies such as wastewater treatment utility American Water Engineering Corporation (AWK.US), global technology innovator Danaher Corp (DHR.US), water sanitation and infection prevention solutions provider ECL.US, analytical instrument manufacturer WAT.US and diversified technology group ROP.US are among the leaders in the ETF.

PHO prices have risen about 14% since the start of the year, hitting an all-time high of $45.50 on Nov. 9. The long-term Pmax E and B were 27.42 and 4.55, respectively.

Judging from short-term technical charts, PHO is currently overbought and investors need to be cautious. Potential profit-taking could push the fund down to $42.5 or less, providing a better entry point for long-term market participants.

Total knot

There are other water resources ETF that deserve long-term attention, including:

Ecofin Global Water ESG Fund (EBLU.US)

First Trust Water ETF (FIW.US)

Invesco Global Water ETF (PIO.US)

Invesco screenp Global Water Index ETF (CGW.US)

Finally, we want to focus on another Chinese fund, Global X MSCI China Utilities ETF (CHIU.US). Although it is not a direct investor in water resources, CHIU provides investors with exposure to some Chinese water resources companies.

According to Aquatech, a water technology platform, "as people's demand for water increases, so do water shortages, pollution, falling groundwater tables and floods / droughts. In order to meet these challenges, the Chinese government is increasingly encouraging foreign companies to enter China's water market. For example, developers of energy-efficient water treatment, filtration products, pumps and water systems are likely to see business growth in China. As a result, long-term investors may also want to pay attention to China's development. Water could become a core asset class in China.