PowerShares Water Resource E.T.F.

PHO-Q

CWW-T in Canada is his preference because of currency risk.

ETF for water that includes desalination, pipelines, valve companies, etc. Has a 5% holding in water, which he considers to be the next oil. Municipalities starting to focus on how they are going to supply water.

Infrastructure on water resources, which will get the largest chunk of spending over the next 25 years. Need for clean water is great, especially in emerging economies.

Little pricey with a PE ratio of 21/22 and may be slightly on the volatile side. Excellent way to play infrastructures. Benefits from $41 trillion in spending of which 22% will be in water. Globally diversified. Would start modestly and gradually build on it.

Water resources. Long-term outlook over the next 5-10 years is excellent. Valuation is a little pricey at 21X earnings. Wouldn't be surprised if the Democrats won't have major spending plans focused in infrastructure in which water is a key area. (See Top Picks for his infrastructure play.)

(A Top Pick June 29/06. Up 25.6%.) Sold off in January because the underlying stocks in that basket were rising to levels that he couldn't justify.

Up about 20% year to date. An amalgam of about 40 or 50 different water companies world wide, such as General Electric, Suez, etc.

Likes the demographics moving forward. Within this basket of water-type companies is water filtration, water purification, and wastewater management. Good price. Buy and hold over the next decade.

A basket of water resources including GE, Suez, water distribution, water purification, waste water management. One of the themes moving forward is going to be clean water. Good price.