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Should You Invest in the Invesco S&P Global Water Index ETF (CGW)?
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Looking for broad exposure to the Industrials - Water segment of the equity market? You should consider the Invesco S&P Global Water Index ETF (CGW - Free Report) , a passively managed exchange traded fund launched on May 14, 2007.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $1.03 billion, 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.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 1.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3) accounts for about 8.1% of total assets, followed by Xylem Inc/ny (XYL) and American Water Works Co Inc (AWK).
The top 10 holdings account for about 55.84% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P Global Water Index ETF return is roughly 4.15% so far, and was up about 21.46% over the last 12 months (as of 01/29/2026). CGW has traded between $51.36 and $66.365 in this past 52-week period.
The ETF has a beta of 1.02 and standard deviation of 14.22% for the trailing three-year period, making it a low risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P Global Water Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CGW is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $1.95 billion in assets, Invesco Water Resources ETF has $2.13 billion. FIW has an expense ratio of 0.51%, and PHO charges 0.59%.
Bottom Line
To 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.
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Should You Invest in the Invesco S&P Global Water Index ETF (CGW)?
Looking for broad exposure to the Industrials - Water segment of the equity market? You should consider the Invesco S&P Global Water Index ETF (CGW - Free Report) , a passively managed exchange traded fund launched on May 14, 2007.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $1.03 billion, 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.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 1.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3) accounts for about 8.1% of total assets, followed by Xylem Inc/ny (XYL) and American Water Works Co Inc (AWK).
The top 10 holdings account for about 55.84% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P Global Water Index ETF return is roughly 4.15% so far, and was up about 21.46% over the last 12 months (as of 01/29/2026). CGW has traded between $51.36 and $66.365 in this past 52-week period.
The ETF has a beta of 1.02 and standard deviation of 14.22% for the trailing three-year period, making it a low risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P Global Water Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CGW is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $1.95 billion in assets, Invesco Water Resources ETF has $2.13 billion. FIW has an expense ratio of 0.51%, and PHO charges 0.59%.
Bottom Line
To 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.