Following My Own Advice: Increased My Investment in PHO (a.k.a Water)

This morning I sold my position in PowerShares Dynamic Semiconductors (PSI) and used the proceeds to buy more PHO, PowerShares’ water ETF. The reason I am interested in investing in water has been explained before, but why PSI?

There are two reasons: First, I already have an investment in semiconductor and that’s TSM, a stock that I have owned for more than four years (I bought TSM at $7.29 and it closed at $10.77). In addition to the share price appreciation, TMS also has an annual dividend yield of 2.90% and it is my second best performing stocks so far, only behind LFC. Then the performance of PSI has been disappointing. I got in PSI in May 2006 at $18.72 a piece and for almost a year, the fund didn’t really go anywhere. Since I only have 200 shares of PSI, the loss isn’t hard to swallow. The following is a chart showing performance of TSM, PSI, and S&P 500 for the past two years.

With this change, now I own 392 shares of PHO.