Waters

IDEX

Pentair

Roper Technologies

Ferguson PLC

Ecolab

Mueller Industries

AECOM

Agilent Technologies

American Water Works

First Trust Water ETF

FIW tracks an index of the 36 largest US-listed water companies, weighted equally within five tiers.

FIW holds 36 companies involved in the potable and wastewater industry. It's well established with $1.84 billion in AUM, but its 0.53% expense ratio is on the high end. Valuation is also concerning. FIW trades at 24.28 forward earnings and only offers 10.01% estimated earnings growth, both of which are worse than XLI, the broad-based Industrials sector ETF. I also found FIW's earnings momentum underwhelming. On average, its components delivered only a 3.47% earnings surprise last quarter.

FIW: Water Remains Expensive

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My investment strategy focuses on generating income from dividends and distributions, supplemented by writing covered calls and cash-secured puts. More broadly, I hold a mix of high-yield and dividend-growth investments, with the approach of both receiving high cash flow and seeing it grow over time as well. With my ETF approach, there are funds that fit both of these categories, some really "boring" names and then those that get more interesting in the "reaching-for-yield" category.

A Look At My 10 ETF Holdings

Launched on 05/08/2007, the First Trust Water ETF (FIW) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Water segment of the equity market.

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

First Trust Water ETF provides exposure to companies in the freshwater treatment and distribution industry. The FIW ETF has a 5-year compounded annual return of 15.0%, outperforming the S&P 500 Index. However, its portfolio is currently trading at 29.3x P/E. While I like the water treatment and distribution investment theme, I am hesitant to invest at current valuations.

FIW: Popular Investment Theme Trading At Elevated Valuations

The First Trust Water ETF holds 36 companies that derive a substantial portion of their revenues from the potable water and wastewater industry. Over the last two years, I have relied on fundamental analysis to justify not buying FIW. In previous reviews, I've noted issues with FIW's valuation, quality, and earnings momentum. FIW has shown improvement on these factors over the last year, and despite it offering solid growth potential, it trades at 23.25x earnings, a rich multiple for the Industrial sector.

FIW: Still Expensive, But This Water ETF Is Flowing In The Right Direction

Invesco S&P Global Water Index ETF

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Ecofin Global Water Fund

Let's dedicate Mar 22 to safe and sufficient water. The water industry seems an excellent investment option to tap the growth.

Dive Into These ETFs on World Water Day

First Trust Water ETF provides broad exposure to the water industry through a passively managed fund. Investing in water stocks is attractive due to growing demand, limited supply, infrastructure investment, regulatory factors, and diversification benefits. FIW has outperformed other water ETFs in terms of annualized returns and offers a favorable backdrop for investment in the water industry.

FIW ETF: Investing In Water

FIW's strategy is based on the modified market cap-weighted ISE Clean Edge Water Index. The factor mix under the hood is not completely flawless. There are valuation concerns, while quality could be better. Growth is attractive, but this parameter is less important now. This year, FIW has been mostly a disappointment, especially in July-September.

FIW: Look At Factors Coldly, Consider Valuation Risks

FIW holds 36 securities that derive substantial revenue from the potable water and wastewater industry. Fees are 0.53% and FIW has outperformed SPY over the last 16 years. The water industry faces several long-term challenges as identified by the American Water Works Association. In particular, supply chain issues related to the Build America, Buy America Act are concerning. FIW remains an expensive fund to own based on forward earnings and trailing cash flow. Wall Street analysts also don't appear bullish on FIW's constituents either, indicating possible short-term headwinds.

FIW: Supply Chain, Valuation Concerns A Threat To This Long-Running Water ETF

Xylem

Badger Meter

Valmont Industries

Advanced Drainage Systems

Essential Utilities

Water is a crucial component throughout the economy. These water stocks and ETFs stand to gain.

Best Water Stocks to Buy

FIW provides dedicated exposure to 36 companies that derive a substantial portion of their revenues from the potable and wastewater industry. The ETF was launched in May 2007. FIW has outperformed SPY since its May 2007 launch. It also has a higher earnings growth rate and a smaller valuation premium compared to my July and October 2022 reviews.

FIW: This Water ETF's Looking To Make A Big Splash

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Consumer Staples Select Sector SPDR Fund

Wall Street witnessed the second-largest bank failure in U.S. history last week. A crypto-centric bank too failed.

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The planet is suffering from a severe lack of potable water - and that is increasingly true even here in the United States. The First Trust Water ETF invests in companies that provide solutions: water testing, treatment, infrastructure, pumps, utilities, distribution, and purification and filtration, for example.

FIW: Because The Planet Is Running Out Of Potable Water

FIW holds 36 companies that derive a substantial portion of their revenues from the potable and wastewater industry. The fund's popularity is increasing, now with $1.14 billion in AUM. However, even considering the sharp decline this year, FIW trades at an expensive 26.77x forward earnings. And since it's a thematic ETF, FIW offers few diversification benefits.

FIW: Water Is Expensive

Water is one of the world's most widely used and coveted resources. Similar to other commodities like gold and oil, water assets can significantly diversify any portfolio.

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Global X Clean Water ETF

Worsening Shortages Put Spotlight on Water ETFs

FIW tracks 36 stocks that derive a substantial portion of their revenues from the potable and wastewater industry. It has a 0.53% expense ratio and just over $1B in AUM. Fundamentally, FIW scores poorly. It's much less volatile than the overall market, but its valuation is rich and FIW lacks the growth potential of other small- and mid-cap peers.

First Trust Water ETF: Early Q2 Earnings Results Are Encouraging

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With a wild first half of the year in the books, investors may want to go thematic with the best ETFs to buy now for the second. The post 7 Best ETFs to Buy Now for July 2022 appeared first on InvestorPlace.

7 Best ETFs to Buy Now for July 2022

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For some investment advisers and stock-pickers, so-called green investing is far from just a feel-good move.

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Many investors have likely heard the saying that "data is the new oil", which, I would note, was coined before the Putin invaded Ukraine and oil jumped back over $100/bbl.

The FIW ETF: Because Water Is More Essential Than Oil (Or Data)

In many regions of the world - including right here in America - water scarcity is becoming an increasingly critical problem.

FIW: This Water ETF Is A Great Way To Beat The Market

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The passage of the $1 trillion bill could provide long-term support for these ETFs.

Infrastructure Bill To Boost ETFs

Danaher

Water has become a multi-billion dollar industry, so these three water stocks should make outstanding additions to any long-term portfolio. The post 3 Worthy Water Stocks to Tap As Drought Becomes a New Normal appeared first on InvestorPlace.

3 Worthy Water Stocks to Tap As Drought Becomes a New Normal

In a runoff between ETF.com's Jessica Ferringer and ETF Action's Mike Akins, which water ETF wins?

ETF Battles: AQWA Vs FIW Vs PHO

Over the past year, the First Trust Water ETF has outperformed the S&P 500 by 10%+ and even bettered the Nasdaq-100 triple Qs as well. The FIW ETF tracks the ISE Clean Edge Water Index, which invests in the top-36 companies in the potable and wastewater industries.

News for First Trust Water ETF ETF (FIW)