tiprankstipranks
Advertisement

FIW - ETF AI Analysis

Compare

Top Page

FIW

First Trust Water ETF (FIW)

Rating:71Outperform
Price Target:
FIW, the First Trust Water ETF, earns a solid overall rating thanks to several strong core holdings like Xylem, Mueller Industries, Veralto, and IDEX, which show robust financial performance, positive earnings outlooks, and supportive technical trends that underpin the fund’s quality. However, weaker names such as Masco and Ferguson, with mixed financial results, higher leverage, and some bearish technical signals, modestly weigh on the rating. The main risk factor is valuation and momentum: several key holdings appear potentially overvalued or overbought, which could increase volatility if market conditions turn.
Positive Factors
Focused Exposure to the Water Theme
The ETF gives investors targeted access to companies tied to water infrastructure, treatment, and technology, which can benefit from long-term demand for clean water and upgraded systems.
Broad Sector Mix Within Industrials
While industrials dominate the fund, it also holds meaningful stakes in health care, utilities, technology, materials, and consumer defensive stocks, helping spread risk across different parts of the economy.
Healthy Asset Base
With a sizable level of assets under management, the fund appears established and likely benefits from better trading liquidity than very small niche ETFs.
Negative Factors
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are eaten up by fees compared with many low-cost index funds.
Heavy Concentration in Industrials and the U.S.
More than half of the portfolio is in industrial companies and almost all holdings are U.S.-based, so performance is heavily tied to one sector and one country.
Recent Performance Weakness
The ETF has shown weak performance so far this year, with several top holdings lagging, which may weigh on returns if conditions do not improve.

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

FIW Summary

The First Trust Water ETF (FIW) is a fund that follows the ISE Clean Edge Water Index and focuses on companies tied to the global water industry. It holds businesses involved in water treatment, infrastructure, and technology, mostly in the U.S. Well-known names in the fund include American Water and Agilent. Someone might invest in FIW to tap into long-term growth from rising demand for clean water and to add a specialized theme to a broader portfolio. A key risk is that it’s heavily focused on water-related and industrial companies, so its price can move up and down more than a fully diversified fund.
How much will it cost me?The First Trust Water ETF (FIW) has an expense ratio of 0.51%, meaning you’ll pay $5.10 per year for every $1,000 invested. This is higher than average because FIW is actively managed and focuses on a niche sector, which typically requires more research and specialized expertise.
What would affect this ETF?The First Trust Water ETF (FIW) could benefit from growing global demand for clean water driven by climate change, population growth, and urbanization, which may boost companies in water management and technology. However, it could face challenges from regulatory changes, rising interest rates affecting industrial and utility sectors, or economic slowdowns that reduce infrastructure investments. FIW’s focus on U.S.-based holdings and its exposure to sectors like Industrials and Utilities makes it sensitive to both domestic economic conditions and environmental policies.

FIW Top 10 Holdings

FIW is a pure play on the water theme, with a heavy tilt toward U.S. industrials and infrastructure names. Lab and measurement specialists like Waters and Agilent have been rising, helping to power recent gains, while American Water adds a steady, utility-like backbone to the portfolio. On the flip side, Roper Technologies and Xylem have been more mixed to lagging, occasionally acting like weights on the fund’s progress. Overall, FIW is concentrated in water-focused industrial and utility leaders, mostly rooted in North America.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Waters5.09%$99.15M$37.05B44.69%
70
Outperform
Agilent4.81%$93.60M$39.08B27.35%
73
Outperform
Roper Technologies4.60%$89.52M$39.56B-24.72%
71
Outperform
Mueller Industries4.08%$79.50M$14.69B54.58%
78
Outperform
Veralto Corporation4.03%$78.56M$22.96B-8.69%
76
Outperform
American Water3.97%$77.42M$26.66B-6.91%
73
Outperform
Ferguson PLC3.93%$76.61M
65
Neutral
IDEX3.91%$76.23M$16.99B48.15%
75
Outperform
Masco3.78%$73.70M$14.09B11.86%
53
Neutral
Xylem3.71%$72.28M$27.31B-15.65%
79
Outperform

FIW Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
107.52
Positive
100DMA
106.04
Positive
200DMA
108.58
Positive
Market Momentum
MACD
1.57
Negative
RSI
62.30
Neutral
STOCH
85.77
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FIW, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 109.44, equal to the 50-day MA of 107.52, and equal to the 200-day MA of 108.58, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIW.

FIW Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.93B0.50%
71
Outperform
$6.71B0.57%
74
Outperform
$5.35B0.49%
72
Outperform
$4.59B0.30%
68
Neutral
$4.37B0.65%
70
Neutral
$2.08B0.59%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIW
First Trust Water ETF
112.86
2.74
2.49%
THRO
Ishares U.S. Thematic Rotation Active Etf
FDN
First Trust Dow Jones Internet Index Fund
IFRA
iShares U.S. Infrastructure ETF
JTEK
JPMorgan U.S. Tech Leaders ETF
PHO
Invesco Water Resources ETF
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: ―
Table of Contents
Advertisement