Although water covers about 70% of the Earth’s surface, we rely on annual precipitation for our actual water supply. About two-thirds of annual precipitation evaporates into the atmosphere, and another 20-25% flows into waterways and is unfit for human use. Only 10% of all rainfall remains for personal, agricultural and industrial use.
Worldwide, around 2.2 billion people live in water-stressed areas, and 4.2 billion lack safe sanitation services. Recent reports have suggested that by 2030, water demand is likely to exceed supply by 40%, and half of the global population will suffer from water stress. To tackle the challenge of water shortages, companies in the water sector are exploring new strategies and leveraging advances in technology in sometimes surprising ways. Implementing solutions to these challenges is critical to survival and fundamental to further economic growth, making this one of the major investment growth opportunities of our time.
Lyxor’s World Water ETF (launched in 2007) invests in companies that derive between 40 and 100% of their revenues from one or many activities in the water value chain: water infrastructure, water treatment, and water utilities.
This blog is for informative purposes only and should not be taken as investment advice. The opinions expressed by Eleanor Willi are her own, as at November 2019,and do not necessarily reflect the views of Lyxor International Asset Management or Societe Generale. Capital at risk. Please read our Risk Warning below.
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