Understanding Invesco S&P Global Water Index ETF (CGW): A Comprehensive Guide

The Invesco S&P Global Water Index ETF (CGW) is a passively managed ETF with $981.10 million in assets, offering broad exposure to the Industrials - Water segment. It tracks the S&P GLOBAL WATER INDEX, comprising developed market securities in water utilities, infrastructure, equipment, instruments, and materials. With an expense ratio of 0.56% and a 12-month trailing dividend yield of 1.97%, the ETF has added 14.91% so far this year and is up 9.62% in the last year. It holds 75 stocks and has a beta of 0.97 and standard deviation of 16.98% for the trailing three-year period.

Title: Invesco S&P Global Water Index ETF (CGW) Performance and Analysis

The Invesco S&P Global Water Index ETF (CGW) has been a notable performer in the water sector, offering investors a diversified and low-risk exposure to the Industrials - Water segment. With a significant asset base of $981.10 million, the ETF has shown robust growth, adding 14.91% so far this year and achieving a 9.62% increase over the past year [2]. This performance is driven by its low expense ratio of 0.56%, making it an attractive option for investors seeking cost-effective exposure to the water sector.

CGW tracks the S&P Global Water Index, which includes developed market securities in water utilities, infrastructure, equipment, instruments, and materials. This broad diversification helps mitigate single stock risk, with the ETF holding 75 stocks. The top holdings, including Xylem Inc (XYL), American Water Works Co Inc (AWK), and Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3), account for approximately 52.15% of total assets under management [2].

The ETF's low beta of 0.97 and standard deviation of 16.98% for the trailing three-year period indicate a low-risk profile, making it suitable for investors seeking stability. Additionally, CGW offers a 12-month trailing dividend yield of 1.97%, providing a modest income stream for investors [2].

Investors interested in the water sector should consider CGW as a solid option, given its strong performance, low costs, and diversified holdings. However, it is essential to evaluate other ETFs in the space, such as First Trust Water ETF (FIW) and Invesco Water Resources ETF (PHO), which also track water indices but have different expense ratios and asset bases [3].

References

[1] https://stooq.com/q/?s=cgw.us
[2] https://finance.yahoo.com/news/invest-invesco-p-global-water-102004481.html
[3] https://finviz.com/news/108960/should-you-invest-in-the-invesco-sp-global-water-index-etf-cgw