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5-Star ETFs Poised to Pop: PowerShares Water Resources

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares Water Resources Portfolio (NYSE: PHO  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PowerShares Water Resources and see what CAPS investors are saying about the ETF right now.

PowerShares Water Resources facts

Inception

December 2005

Total Assets

$884.4 million

Investment Approach

Seeks investment results that correspond to the Palisades Water Index, which is comprised of companies whose water or water-related activities stand to benefit from meeting the issues associated with the provision of water and the management of water resources.

Expense Ratio

0.60%

Dividend Yield

1.1%

1-Year Return / 3-Year / 5-Year Annualized Returns

(2.4%) / 13% / (0.7%)

Top 10 Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight

Veolia Environnement (NYSE: VE  ) (4.3%)

AECOM Technology (NYSE: ACM  ) (4.3%)

ITT (NYSE: ITT  ) (4.1%)

Alternatives

PowerShares Global Water (NYSE: PIO  )

Guggenheim S&P Global Water (NYSE: CGW  )

Source: Morningstar and Motley Fool CAPS.

On CAPS, 99% of the 835 members who have rated PowerShares Water Resources believe the ETF will outperform the S&P 500 going forward. These bulls include Juanito1 and paradigms.

Last year, Juanito1 touched on the tailwinds working in the ETF's favor: "Potable water is becoming more and more scarce. ... [D]emand will rise as the global population rises and as globalization expands and increases standards of living."

PowerShares Water Resources, in particular, sports an expense ratio of 0.60%. That's lower than other "water" ETFs such as PowerShares Global Water (0.75%) and Guggenheim S&P Global Water (0.65%).

CAPS member paradigms expands on the outperform argument:

I own shares in this ETF because I'm convinced that the world's shortage of safe drinking water will be addressed in the coming decades by companies in this ETF. Water infrastructure and water treatment technologies are in demand everywhere, but will be particularly important in developing nations.

What do you think about PowerShares Water Resources, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track PowerShares Water Resources? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Veolia. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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