desperate need of water

Water is in short supply. Markets should pay attention

Water is in short supply. Markets should pay attention

The world is in desperate need of water. Drought and increasing temperatures have threatened to impact nearly every major sector of the economy, from energy to agriculture to shipping. Markets are taking note. The S&P Global Water Index, which tracks 50 companies from around the world that are involved in water utilities, infrastructure, equipment and materials, has outperformed the S&P Global Broad Market Index by more than 3 percentage points per year since its beginning in late 2001. So far this year, the Global Water Index return has been nearly 5 percentage points higher than the S&P Global BMI.