Should You Invest in the First Trust Water ETF (FIW)?

Core Insights - The First Trust Water ETF (FIW) is designed to provide broad exposure to the Industrials - Water segment of the equity market and was launched on May 8, 2007 [1] - The ETF has amassed over $1.87 billion in assets, making it one of the larger ETFs in its category [3] - The fund seeks to match the performance of the ISE Clean Edge Water Index, which includes companies deriving substantial revenue from the potable and wastewater industry [4] Cost and Performance - The annual operating expenses for FIW are 0.51%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.71% [5] - The ETF has gained approximately 7.40% year-to-date and is up about 4.83% over the past year, with a trading range between $90.26 and $111.02 in the last 52 weeks [8] Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, accounting for about 57.50% of the portfolio, with Utilities and Healthcare following [6] - Ferguson Enterprises Inc. represents about 4.74% of total assets, with the top 10 holdings comprising approximately 39.78% of total assets under management [7] Risk Profile - The ETF has a beta of 1.02 and a standard deviation of 18.25% over the trailing three-year period, indicating a medium risk profile [8] Alternatives - The First Trust Water ETF holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns and momentum [9] - Other alternatives in the water ETF space include Invesco S&P Global Water Index ETF (CGW) and Invesco Water Resources ETF (PHO), with assets of $990.66 million and $2.21 billion respectively [10]