First Trust Water ETF (FIW US) – Investment PropositionFirst Trust Water ETF (FIW) provides targeted exposure to companies whose revenues are tied to the global water value chain, spanning equipment manufacturers, infrastructure and treatment providers, and regulated utilities across market caps. The fund tracks a rules-based index emphasizing issuers that derive a substantial share of revenue from potable and wastewater activities, seeking a purer play on secular needs such as network rehabilitation, leak ...

Core Viewpoint - The Invesco S&P Global Water Index ETF (CGW) is designed to provide investors exposure to companies involved in water-related technology and management, with a focus on large-cap constituents and a total asset under management of $1.01 billion [2][3]. Group 1: ETF Overview - CGW was launched on May 14, 2007, and is a passively managed sector ETF that tracks the S&P Global Water Index [3]. - The ETF has substantial liquidity, with an average daily trading volume of $1.91 million and a low bid/ask spread of 10 basis points [3]. - The S&P Global Water Index includes companies operating in water-related businesses, requiring a minimum market cap of $300 million and a float-adjusted market cap of $100 million [4]. Group 2: Geographic and Sector Exposure - The portfolio is geographically diversified, with approximately 60% in the US, 11.80% in the UK, 8.33% in Brazil, and 7.33% in Switzerland [5]. - Sector exposure is primarily in industrials (46.74%) and utilities (43.35%), making it a potential portfolio diversifier [7][9]. Group 3: Holdings and Performance - CGW utilizes a sampling method with 64 holdings, where the top 10 holdings account for 55% of the total portfolio weight [12]. - The ETF offers a distribution rate of $1.23 per share, yielding 1.91% on a trailing twelve-month basis, which is higher than the 1.08% yield of the S&P 500 [13]. - Compared to peer ETFs, CGW has a higher concentration in its top holdings, with the First Trust Water ETF (FIW) having a lower concentration at 40.88% for its top 10 holdings [16][18]. Group 4: Investment Strategy and Comparison - The water sector is experiencing secular growth trends, driven by increasing demand for water in various industries, making CGW suitable for both tactical positioning and long-term holding [15]. - CGW is one of the larger water sector ETFs, but FIW may offer a more optimal investment strategy due to its lower expense ratio and relative performance [16][18]. - CGW is best utilized as a satellite position within a diversified portfolio, providing differentiated exposure compared to broader market indices [23].

Group 1: Core Insights - The Invesco Global Water ETF (PIO) debuted on June 13, 2007, providing broad exposure to the Industrials ETFs category [1] - PIO is managed by Invesco and has accumulated over $274.11 million in assets, making it an average-sized ETF in its category [5] - The fund seeks to match the performance of the NASDAQ OMX Global Water Index, which tracks companies focused on water conservation and purification [5] Group 2: Cost and Performance - PIO has an annual operating expense ratio of 0.75%, which is considered high compared to other ETFs [6] - The ETF has a 12-month trailing dividend yield of 1.08% [6] - Year-to-date, PIO has increased by approximately 15.31% and has risen by about 12.26% over the past year [8] Group 3: Holdings and Risk - The top holding, Pentair Plc (PNR), constitutes about 8.22% of the fund's total assets, with the top 10 holdings making up approximately 59.35% of total assets [7] - PIO has a beta of 1.00 and a standard deviation of 17.55% over the trailing three-year period, indicating medium risk [9] Group 4: Alternatives - Alternatives to PIO include the First Trust Water ETF (FIW) and Invesco Water Resources ETF (PHO), with assets of $1.9 billion and $2.22 billion respectively [10] - FIW has an expense ratio of 0.51%, while PHO charges 0.59% [10]

Core Viewpoint - The Invesco Water Resources ETF (PHO) is a smart beta ETF designed to provide broad exposure to the Industrials ETFs category, focusing on companies involved in water conservation and purification [1][5]. Fund Overview - PHO was launched on December 6, 2005, and has accumulated over $2.18 billion in assets, making it one of the larger ETFs in its category [1][5]. - The fund aims to match the performance of the NASDAQ OMX US Water Index, which tracks US companies that create products for water conservation and purification [5]. Cost and Expenses - The annual operating expenses for PHO are 0.59%, which is competitive within its peer group [6]. - The ETF has a 12-month trailing dividend yield of 0.49% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising approximately 62.6% of the portfolio, with Utilities and Information Technology as the next largest sectors [7]. - Ferguson Enterprises Inc (FERG) is the largest holding at about 9.31%, followed by Ecolab Inc (ECL) and Roper Technologies Inc (ROP). The top 10 holdings account for around 60.13% of total assets [8]. Performance Metrics - As of July 31, 2025, PHO has gained approximately 7.23% over the past year and is up about 2.03% year-to-date [10]. - The ETF has traded between $58.13 and $72.14 in the last 52 weeks, with a beta of 0.99 and a standard deviation of 18.12% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the water resources space include the Invesco S&P Global Water Index ETF (CGW) and the First Trust Water ETF (FIW), with assets of $972.33 million and $1.86 billion, respectively [12]. - CGW has an expense ratio of 0.56%, while FIW charges 0.51%, providing investors with lower-cost options [12].

Core Insights - The Invesco Water Resources ETF (PHO) is designed to provide broad exposure to the Industrials - Water segment of the equity market, launched on December 6, 2005 [1] - The ETF has amassed over $2.2 billion in assets, making it one of the larger ETFs in its category [3] - PHO seeks to match the performance of the NASDAQ OMX US Water Index, which tracks companies focused on water conservation and purification [3] Fund Details - The annual operating expenses for PHO are 0.59%, which is competitive within its peer group [4] - The ETF has a 12-month trailing dividend yield of 0.49% [4] - The fund has a heavy allocation in the Industrials sector, approximately 62.4% of the portfolio, with Utilities and Information Technology also significant [5] Holdings - Ferguson Enterprises Inc (FERG) is the largest holding, accounting for about 9.31% of total assets, followed by Ecolab Inc (ECL) and Roper Technologies Inc (ROP) [6] - The top 10 holdings make up approximately 60.13% of total assets under management [6] Performance Metrics - Year-to-date, PHO has gained about 8.05%, and it is up approximately 5.7% over the last year as of July 25, 2025 [7] - The fund has traded between $58.13 and $72.14 in the past 52 weeks [7] - PHO has a beta of 0.99 and a standard deviation of 18.19% for the trailing three-year period, indicating medium risk [7] Alternatives - PHO carries a Zacks ETF Rank of 3 (Hold), suggesting it is a sufficient option for investors seeking exposure to the Industrials ETFs area [8] - Other ETF options in the space include Invesco S&P Global Water Index ETF (CGW) and First Trust Water ETF (FIW), with assets of $983.39 million and $1.88 billion respectively [9]

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]

Core Insights - The Invesco Global Water ETF (PIO) provides broad exposure to the Industrials - Water segment and is passively managed, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][3] Fund Overview - PIO has assets exceeding $275.24 million and aims to match the performance of the NASDAQ OMX Global Water Index, which tracks companies focused on water conservation and purification [3] - The ETF has an annual operating expense ratio of 0.75%, making it one of the more expensive options in its category, with a 12-month trailing dividend yield of 1.08% [4] Holdings and Sector Exposure - The top holding, Pentair Plc (PNR), constitutes approximately 8.22% of total assets, followed by Veolia Environnement Sa (VIE) and Ecolab Inc (ECL) [5] - The top 10 holdings represent about 59.35% of total assets under management, indicating a concentrated investment strategy [6] Performance Metrics - PIO has experienced a gain of approximately 15.15% over the past year and is up about 9.49% year-to-date as of July 22, 2025 [7] - The ETF has traded within a range of $35.79 to $45.25 over the last 52 weeks, with a beta of 1.01 and a standard deviation of 17.74%, categorizing it as a medium-risk investment [7] Investment Alternatives - PIO holds a Zacks ETF Rank of 2 (Buy), suggesting it is a favorable option for investors seeking exposure to the Industrials ETFs segment [8] - Other alternatives include the First Trust Water ETF (FIW) and the Invesco Water Resources ETF (PHO), with assets of $1.85 billion and $2.19 billion respectively, and lower expense ratios of 0.51% and 0.59% [9]

Core Insights - The Invesco S&P Global Water Index ETF (CGW) is designed to provide broad exposure to the Industrials - Water segment of the equity market, launched on 05/14/2007 [1] - The ETF has accumulated over $981.10 million in assets, positioning it as an average-sized ETF in its category [3] - The ETF has a 12-month trailing dividend yield of 1.97% and annual operating expenses of 0.56% [4] Sector Overview - The Industrials - Water sector is ranked 4th among the 16 Zacks sectors, placing it in the top 25% [2] - Sector ETFs like CGW offer low-risk and diversified exposure to a broad group of companies within specific sectors [2] Fund Details - CGW aims to match the performance of the S&P Global Water Index, which includes developed market securities related to water utilities, infrastructure, equipment, instruments, and materials [3] - The top 10 holdings of CGW account for approximately 52.15% of total assets, with Xylem Inc (XYL) being the largest holding at 7.94% [5][6] Performance Metrics - The ETF has increased by about 14.91% year-to-date and is up roughly 9.62% over the past year, with a trading range between $51.36 and $63.29 in the last 52 weeks [7] - CGW has a beta of 0.97 and a standard deviation of 16.98% over the trailing three-year period, indicating it is a low-risk investment option [7] Alternatives - CGW holds a Zacks ETF Rank of 2 (Buy), indicating strong potential based on expected asset class return, expense ratio, and momentum [8] - Other ETFs in the water sector include the First Trust Water ETF (FIW) and the Invesco Water Resources ETF (PHO), with assets of $1.85 billion and $2.19 billion respectively [9][10]