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CGW

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CGW

ETF full name: Invesco S&P Global Water Index ETF

Segment: Global water

ETF provider: Invesco

CGW key details
Issuer Invesco
Dividend  $0.66
Inception date May 14, 2007
Expense ratio 0.57%
Management company Invesco
Average 3-5 EPS N/A
Average Annualized Return 45.26%
Investment objective Replication
Investment geography Global water
Benchmark S&P Global Water Index
Leveraged N/A
Median market capitalization $12.0 billion
ESG rating MSCI 7.8/10
Number of holdings 50
Weighting methodology  Weighted Market capitalization

About the CGW ETF

Invesco S&P Global Water Index ETF CGW was initiated in May 2007 and is meant to track the S&P Global Water Index. Its market capitalization amounts to $12.00 billion, with an average yearly return of 45.26%.

CGW Fact-set analytics insight

The CGW consists of 50 holdings, 52% of which are in the United States. With the rest of its holdings geographically dispersed, the United Kingdom amounts to approximately 15% of the units. As far as the industries go, almost 52% of the companies are related to industrials, with the utilities following a 36% share.

The CGW, like other ETFs based on the S&P index, uses weighted market capitalization for its methodology.

CGW performance analysis

CGW performance analysis

Unlike other industries that the Covid-19 pandemic has heavily impacted, CGW is appealing to the investors primarily due to the prospective scarcity of water supplies, which, coupled with the rising global population, could propel the shares of companies that deal with water supply and treatment. After the initial shock caused by disruptions in operations due to Covid lockdowns, the ETF has been on an upward path ever since, as the graph goes to prove.

The CGW ETF pays dividends quarterly. For the last quarter, the dividend amounted to $0.66 on the share at an expense ratio of 0.57%.

On the MSCI ESG scale, XLK ETF has a 7.88/10 double-A rating. The fund was declared to be of higher-than-average resilience in environmental, governmental, and social changes.

 

CGW ETF RATING

Resource ETF DATABASE ETF.com MarketWatch Morningstar.com Money.usnews.com
CGW Rating AA AA 4 ***** 3.8/10
CGW ESG Rating  7.88/10 AA N/A N/A N/A

CGW key holdings

The CGW ETF relies on the infrastructure companies and water equipment and materials firms, with no dominating role by either of the holdings, save for maybe American Water Works Inc.

So the US firm is the only unit close to a double-digit share in the ETF. The company reported a 7% growth in its earnings per share in the year’s first trimester.

Close behind is the American water technology provider Xylem, which posted a 12% jump in revenue in the last three-month period. While the trend may not be as whopping as some seen by the technology companies, or the pharmaceutical firms, the upticks still prevail throughout the constituents’ list.

Here are the top 10 holdings making up the CGW ETF.

Ticker Holding name % of assets
AWK American Water Works Company, Inc. 9.75%
XYL Xylem Inc. 8.91%
VIE Veolia Environnement SA 5.48%
HLMA Halma plc 5.39%
GEBN Geberit AG 5.21%
PNR Pentair plc 4.67%
WTRG Essential Utilities, Inc. 4.56%
UU SUEZ SA 4.13%
SEV United Utilities Group PLC 3.59%
SVT Severn Trent plc 2.91%

Industry outlook

The global population has been on a continual upward path, and the United Nation’s latest communique warned that over 2 billion people already live in countries with high water stress. It means that almost one-third of the people live in countries with either scarce water supply or subpar water quality. With climate change underway, the projections don’t get a lot less gloomy.

 

Water management companies sound like a solid choice to invest in; it would seem. For the most part, that thinking stands to reason. One possible pitfall is that the strength of the tie between the water scarcity and the fund’s performance is difficult to determine. While the water ETFs are on a safer side, be sure to check the concentrations before you invest and be prepared for less-than-spectacular profits.

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