As explained on an NPR segment on water, a water market can be described as a stock market for water . Instead of offering financial products like stocks and bonds, sellers in water markets can offer short or long term leases on their water rights and even sell them outright.
Also know, how do you trade water rights?
In most countries where water can be traded, farmers can buy or sell water rights, which entitle them to a given share of total available water within a season. The water volume that each right holder gets is called his allocation. When needed, farmers can also buy or sell water on the seasonal allocation market.
Additionally, how do water entitlements work?
A water entitlement is a property right that can be transferred independently of a water allocation. The transfer of a water entitlement is commonly referred to as 'permanent' trade, although entitlement transfers can be: for all or part of an entitlement. to change owners.
How do I buy stocks in water?
To review, here are a few ETFs and stocks for water investing:
- American Water Works Co. (AWK)
- Agua America (WTR)
- Invesco Water Resources ETF (PHO)
- First Trust Water ETF (FIW)
- Tortoise Global Water ESG Fund (TBLU)
- Invesco S&P Global Water Index ETF (CGW)
- PowerShares Global Water Portfolio ETF (PIO)
Why is Michael Burry investing in water?
Weary of negative real interest rates and high levels of debt, Burry has turned to the one commodity he views as a safe investment: water. Burry believes the best way to invest in water is through food – i.e., by growing food in water-rich environments and transporting it to water-poor regions.