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FIW - ETF AI Analysis

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FIW

First Trust Water ETF (FIW)

Rating:71Outperform
Price Target:
FIW, the First Trust Water ETF, has a solid overall rating driven mainly by strong, growing companies like Xylem, Mueller Industries, and Veralto, which benefit from positive earnings, strategic initiatives, and generally supportive technical trends. Holdings such as Ecolab, Ferguson, and Roper Technologies slightly weigh on the rating due to signs of potential overvaluation and weaker technical momentum. A key risk factor is that many top holdings show cautionary technical signals or valuation concerns at the same time, which could increase volatility if market conditions turn.
Positive Factors
Focused Water Theme
The ETF targets companies tied to the water industry, giving investors a simple way to invest in a long-term essential resource theme.
Sector Diversification Within Industrials
While industrials dominate, the fund also holds health care, utilities, technology, materials, and consumer defensive stocks, which can help spread risk across different parts of the economy.
Healthy Fund Size
With a sizable asset base, the ETF appears established and likely benefits from better trading liquidity than very small niche funds.
Negative Factors
Mixed Recent Performance
The fund’s year-to-date and recent three-month results have been weak overall, showing that the strategy has struggled in the short term.
Underperforming Key Holdings
Several of the largest positions, including Waters, Roper Technologies, Agilent, Xylem, Veralto, and Pentair, have shown weak performance this year, which can drag on the ETF’s returns.
High Fee for an ETF
The expense ratio is relatively high compared with many broad-market ETFs, meaning more of the fund’s returns are eaten up by costs.

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

FIW Summary

The First Trust Water ETF (FIW) is an exchange-traded fund that follows the ISE Clean Edge Water Index, focusing on companies involved in water management, treatment, and infrastructure. It mainly holds U.S. industrial and utility businesses that help deliver clean and reliable water. Well-known names in the fund include American Water and Ecolab. Someone might invest in FIW to tap into long-term growth tied to rising global demand for clean water, while spreading risk across many companies in this theme. A key risk is that it’s concentrated in the water sector, so it can go up or down more than the broader market.
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. industrial names that build and maintain the pipes, pumps, and lab gear behind clean water. Ferguson and Mueller Industries have been rising and are doing much of the heavy lifting for the fund, while steady utility player American Water helps smooth the ride. On the flip side, lab and equipment names like Waters, Agilent, and Xylem have been lagging this year, acting as a bit of an anchor on an otherwise resilient, North America–focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Ferguson PLC4.24%$78.62M£37.89B53.97%
65
Neutral
Mueller Industries4.24%$78.56M$15.04B87.40%
78
Outperform
Roper Technologies4.22%$78.19M$36.18B-36.14%
71
Outperform
American Water4.06%$75.27M$25.86B-8.53%
73
Outperform
Xylem3.99%$73.97M$29.25B6.55%
79
Outperform
Agilent3.99%$73.91M$32.65B8.19%
73
Outperform
Waters3.93%$72.83M$30.42B-11.80%
70
Outperform
Pentair3.89%$72.18M$14.83B2.53%
75
Outperform
Masco3.80%$70.37M$14.96B22.75%
53
Neutral
Veralto Corporation3.74%$69.40M$21.76B-5.34%
76
Outperform

FIW Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
106.84
Negative
100DMA
109.53
Negative
200DMA
110.45
Negative
Market Momentum
MACD
0.03
Positive
RSI
43.36
Neutral
STOCH
24.95
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FIW, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 107.26, equal to the 50-day MA of 106.84, and equal to the 200-day MA of 110.45, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIW.

FIW Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.82B0.51%
71
Outperform
$8.06B0.57%
75
Outperform
$5.17B0.49%
72
Outperform
$4.04B0.30%
68
Neutral
$3.67B0.65%
69
Neutral
$2.07B0.59%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIW
First Trust Water ETF
105.22
4.01
3.96%
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: ―
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