Explore the potential benefits and risks of investing in the Invesco S&P Global Water Index ETF (CGW) for your portfolio.
These passively managed ETFs are gaining traction among both retail and institutional investors. They offer low costs, transparency, and flexibility, making them a solid choice for long-term investors. Plus, they provide a low-risk way to get diversified exposure to specific sectors, like water.
The fund is backed by Invesco and has over $853 million in assets. It aims to match the performance of the S&P Global Water Index, which includes various water utilities and infrastructure companies.
When it comes to costs, CGW has an annual operating expense of 0.56%, which is pretty standard for this type of fund. It also boasts a 12-month trailing dividend yield of 2.36%, which is a nice perk for investors.
Even though ETFs spread out risk, it’s still smart to check out what companies are in the fund. American Water Works Co Inc is the biggest holding at about 7.83%, followed by Xylem Inc and United Utilities Group. The top ten holdings make up over half of the total assets.
This year, CGW has seen a dip of about 3.76%, but it’s up around 2.38% over the past year. The fund has a beta of 1, indicating it’s a low-risk option, and it holds around 74 different stocks to help minimize risk.
If you’re considering CGW, it has a Zacks ETF Rank of 3, which means it’s a decent choice for those wanting exposure to the water sector. You might also want to check out alternatives like the First Trust Water ETF or the Invesco Water Resources ETF, which have slightly different focuses and expense ratios.
In short, if you’re curious about ETFs and want to learn more, check out Zacks ETF Center for the latest info and insights. They even have a free newsletter that keeps you updated on top-performing ETFs and market news. Happy investing!
