best natural resources to invest in

At the current moment, there are more than 11,000 desalination facilities worldwide. The offers that appear in this table are from partnerships from which Investopedia receives compensation. As of Oct. 2018, PRNEX has generated a 10-year annualized return of 2.62% and has an expense ratio of 0.69%. While the shortage of fresh water is a problem now, the problem will become even more urgent in the future. How to Invest in the World's Most Valuable Natural Resource The world's demand for fresh water will only increase. As technology progresses and solar becomes more cost effective elsewhere in the world, solar investors should also gain exposure to other desalination energy markets as well. An energy problemAt its heart, the scarcity of fresh water is an energy problem. The natural resources sector includes securities of companies engaged in extractive practices of commodities, including mining for coal, metallic ore, sand, gravel and oil shale. Although natural resources have their place in investor portfolios, the industry carries a degree of risk. GE was named Global Water Intelligence's 2012 Desalination Company of the Year, and according to, the conglomerate ranks third in terms of contracted capacity of engineering, procurement, and construction of desalination plants since 2000. Natural resource investing overlaps with more specialized types of investing, including oil and gas investing, precious metals investing, minerals and (base) metals investing, etc. The, Market Vectors Global Alternative Energy ETF. It takes energy to transport fresh water from the coastal areas to inland population centers and aquifers. ETF issuers who have ETFs with exposure to Natural Resources are ranked on certain investment-related metrics, including estimated revenue, 3-month fund flows, 3-month return, AUM, average ETF expenses and average dividend yields. A no-load fund is a mutual fund in which shares are sold without a commission or sales charge. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Despite the media focus on oil, other natural resource providers were represented on the roster of the top 10 performers. It takes energy to convert salt water to fresh water. Stock Advisor launched in February of 2002. Investing in solar companies such as SunEdison should give investors exposure to energy demand from new Middle Eastern desalination plants. Fund manager Rob Young, along with the portfolio management team, seeks long-term capital appreciation by investing a minimum of 80% of fund assets in equity securities of companies related to natural resources. Natural resource investments have a low correlation with other broad sectors, making them a hedge against market downturns in certain instances. This may sound like a lot, but it is only around 0.26% of world demand , which pales in comparison to the 40% excess demand forecast by 2030. Top holdings within FSCHX include DowDuPont at 25.1%, LyondellBasell Industries NV at 9.3% and The Chemours Co. at 7%. Any number of other grains and metals came along for the ride, prompting headlines about the major upward inflection in commodity prices. It raises the question of whether this could be a harbinger of the future of successful energy investing. The T. Rowe Price New Era Fund is one of the oldest natural resources mutual funds, with an inception date of 1969. Investopedia uses cookies to provide you with a great user experience. Investors are not hit with an upfront or deferred sales load and without a minimum investment amount required. The current leaders in desalination are small divisions of large companies such as GE (NYSE:GE) and Dow Chemical (NYSE:DOW). The metric calculations are based on U.S.-listed Natural Resources ETFs and every Natural Resources ETF has one issuer. The latest bounce was more than sufficient to cinch the energy/natural resources group as fund sector of the week. The average North American uses 1,280 cubic meters of fresh water per year. Those who thought the tumble signaled a reversal of the commodity inflation trend and took positions on the short side were then whipsawed this past week as petroleum, gold and a host of other tangibles retraced much of the ground that had been lost a week earlier. The ICON Natural Resources Fund is made available to investors and supported by the ICON funds group. Equity income is primarily referred to as income from stock dividends. Ironically, the week's top energy/natural resources performer was of the "alternate energy" variety that would be expected to benefit from lowering dependency on stuff extracted from the earth. With oil and other commodity prices bouncing around, here's a look at funds in the natural resources sector. In stark contrast, the average African uses only 186 cubic meters per year. ICBMX has generated a 10-year annualized return of 3.53%, with an expense ratio of 1.51%. A minimum investment of $1,000 is required for both nonqualified accounts and IRAs. Richard Widows is a senior financial analyst for Ratings. As of Oct. 2018, DNLAX has generated a 10-year annualized return of 3.31%, with an expense ratio of 1.36%. Since its inception in 1985, FSCHX has sought capital appreciation by investing the majority of investor assets in the common stock of companies principally engaged in the research, development, manufacture or marketing of products and services directly related to the chemical process industry. Another desalination leader is Veolia Environnement (OTC:VEOEY) According to, Veolia Environnement  is the market leader in terms of contracted capacity of engineering, procurement and construction of desalination plants since 2000. The bottom lineThe world's fresh water shortage is a huge problem that requires multifaceted solutions such as improving sewage and irrigation systems, lowering the cost of desalination plants, and realizing cheaper energy costs. Fund managers must invest at least 80% of the fund's $444 million assets in natural resource or natural resource-related companies. As the world becomes more developed, the need for the extraction and processing of natural resources increases, resulting in investment opportunities from a myriad of sources. Companies engaged primarily in water-related activities not listed on the aforementioned indices may also be included at the fund manager's discretion. Being ranked in the top 10 best performing stocks of the Natural Resources sector, the company also succeeded in outperforming the returns generated by some of the popular stock market indexes. Both common stock and preferred stock may be included in the fund's investment mix, and there are no restrictions as it relates to market capitalization. His international experience includes assignments in the U.K. and East Asia. The fund manager, Andreas Fruschki, and the investment team seek long-term capital appreciation by investing a minimum of 80% of fund assets in common stock and other equity securities of companies represented in at least one of the following indices: the S&P Global Water Index, the NASDAQ OMX US Water Index or the S-Network Global Water Index.

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