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CGW - ETF AI Analysis

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CGW

Invesco S&P Global Water Index ETF (CGW)

Rating:61Neutral
Price Target:
CGW, the Invesco S&P Global Water Index ETF, has a solid but not top-tier rating, reflecting a portfolio of generally strong water-related companies with some notable risks. Higher-quality holdings like Xylem and Veralto support the fund’s standing through strong financial performance, positive earnings commentary, and strategic initiatives that point to continued growth. However, concerns such as overvaluation, mixed or bearish technical signals, and leverage and cash flow issues at some utilities introduce risk, and the fund’s focus on the global water sector means performance is closely tied to that single industry.
Positive Factors
Focused Water Theme
The ETF targets companies involved in the global water industry, giving investors a focused way to invest in this long-term essential resource.
Global Diversification
Holdings spread across the U.S., U.K., Switzerland, Japan, India, and other countries help reduce reliance on any single market.
Generally Positive Recent Returns
The fund has delivered steady gains so far this year and over the past month, showing resilient recent performance despite a softer three-month period.
Negative Factors
High Expense Ratio
The fund’s fee is relatively high for an ETF, which can gradually eat into investor returns over time.
Sector Concentration in Industrials and Utilities
Nearly all assets are in industrials and utilities, so the fund may be hit hard if these sectors face pressure.
Meaningful Single-Country Exposure
With a large majority of assets in U.S. companies, the ETF remains heavily tied to the performance and regulation of the U.S. market.

CGW vs. SPDR S&P 500 ETF (SPY)

CGW Summary

CGW is the Invesco S&P Global Water Index ETF, which follows the S&P Global Water Index and focuses on companies involved in water utilities, infrastructure, and equipment. It holds well-known names like American Water and Xylem, which help deliver, treat, and manage clean water around the world. Investors might consider CGW if they want long-term growth tied to the essential need for water, along with global diversification in a single fund. A key risk is that it is concentrated in the water sector, so its price can rise or fall more sharply if water-related industries struggle.
How much will it cost me?The Invesco S&P Global Water Index ETF (CGW) has an expense ratio of 0.59%, meaning you’ll pay $5.90 per year for every $1,000 invested. This is higher than average for ETFs because it is passively managed but focuses on a niche sector, which often involves higher costs to track specialized indexes.
What would affect this ETF?The CGW ETF could benefit from increasing global investment in water infrastructure and sustainability initiatives, as well as growing demand for clean water solutions driven by population growth and climate change. However, it may face challenges from regulatory changes, rising interest rates that could impact utilities and industrial companies, or economic slowdowns that reduce infrastructure spending. Its global exposure and focus on water-related industries position it to capitalize on long-term trends but also make it sensitive to sector-specific risks.

CGW Top 10 Holdings

CGW is a pure play on the global water story, with industrials and utilities doing most of the heavy lifting. On the upside, Ecolab and Advanced Drainage Systems have been rising, giving the fund a boost, while European utilities like United Utilities and Severn Trent add steady, dividend-backed momentum. On the other side, Xylem and Veralto have been lagging lately, acting as a bit of a brake despite solid business fundamentals. Overall, the ETF is globally diversified but thematically concentrated in water infrastructure and services.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
9.01%$91.68M
American Water8.64%$87.92M$27.27B-3.21%
73
Outperform
Xylem6.85%$69.67M$29.15B-2.35%
79
Outperform
Essential Utilities6.02%$61.28M$11.79B5.44%
66
Neutral
Veralto Corporation5.34%$54.32M$22.36B-7.91%
76
Outperform
United Utilities4.89%$49.72M£9.23B36.46%
72
Outperform
Ecolab4.08%$41.54M$77.31B9.25%
66
Neutral
Severn Trent4.06%$41.37M£9.51B28.27%
71
Outperform
Advanced Drainage Systems3.59%$36.55M$10.69B26.07%
74
Outperform
Geberit AG3.57%$36.31MCHF17.60B-4.86%
66
Neutral

CGW Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
66.06
Negative
100DMA
64.56
Negative
200DMA
63.31
Positive
Market Momentum
MACD
-0.78
Positive
RSI
34.62
Neutral
STOCH
17.04
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGW, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 66.45, equal to the 50-day MA of 66.06, and equal to the 200-day MA of 63.31, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 34.62 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGW.

CGW Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.02B0.58%
61
Neutral
$9.96B0.39%
65
Neutral
$9.78B0.58%
71
Outperform
$8.80B0.55%
60
Neutral
$7.87B0.56%
64
Neutral
$7.41B0.46%
59
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGW
Invesco S&P Global Water Index ETF
64.05
8.57
15.45%
IGF
iShares Global Infrastructure ETF
CIBR
First Trust NASDAQ Cybersecurity ETF
BAI
iShares A.I. Innovation and Tech Active ETF
GRID
First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index
GUNR
FlexShares Morningstar Global Upstream Natural Resources Index Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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