Should You Invest in the Invesco S&P Global Water Index ETF (CGW)?

Launched on May 14, 2007, the Invesco S&P Global Water Index ETF (CGW) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Water segment of the equity market.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $979.35 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. CGW seeks to match the performance of the S&P GLOBAL WATER INDEX before fees and expenses.The S&P Global Water Index comprises of developed market securities including water utilities, infrastructure, equipment, instruments and materials.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.59%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.95%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Looking at individual holdings, Xylem Inc/ny (XYL) accounts for about 8.3% of total assets, followed by American Water Works Co Inc (AWK) and Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3).The top 10 holdings account for about 54.57% of total assets under management.Performance and RiskThe ETF return is roughly 16.19% and was up about 10.09% so far this year and in the past one year (as of 11/24/2025), respectively. CGW has traded between $51.36 and $65.98 during this last 52-week period.The ETF has a beta of 1.01 and standard deviation of 14.68% for the trailing three-year period, making it a low risk choice in the space. With about 75 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P Global Water Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, CGW is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.First Trust Water ETF (FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (PHO) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.90 billion in assets, Invesco Water Resources ETF has $2.11 billion. FIW has an expense ratio of 0.51%, and PHO charges 0.59%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P Global Water Index ETF (CGW): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks