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Should You Invest in the Invesco S&P Global Water Index ETF (CGW)?
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Designed to provide broad exposure to the Industrials - Water segment of the equity market, the Invesco S&P Global Water Index ETF (CGW - Free Report) is a passively managed exchange traded fund launched on May 14, 2007.
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 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $986.65 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.
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 0.58%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.61%.
Sector Exposure and Top Holdings
ETFs 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, Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3) accounts for about 10.04% of total assets, followed by American Water Works Co Inc (AWK) and Xylem Inc/ny (XYL).
The top 10 holdings account for about 56.19% of total assets under management.
Performance and Risk
The ETF has lost about 1.92% so far this year and is up roughly 2.88% in the last one year (as of 06/02/2026). In that past 52-week period, it has traded between $60.49 and $68.86.
The ETF has a beta of 0.95 and standard deviation of 14.31% 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 good 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 $1.77 billion in assets, Invesco Water Resources ETF has $1.97 billion. FIW has an expense ratio of 0.5%, 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)?
Designed to provide broad exposure to the Industrials - Water segment of the equity market, the Invesco S&P Global Water Index ETF (CGW - Free Report) is a passively managed exchange traded fund launched on May 14, 2007.
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 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $986.65 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.
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 0.58%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.61%.
Sector Exposure and Top Holdings
ETFs 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, Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3) accounts for about 10.04% of total assets, followed by American Water Works Co Inc (AWK) and Xylem Inc/ny (XYL).
The top 10 holdings account for about 56.19% of total assets under management.
Performance and Risk
The ETF has lost about 1.92% so far this year and is up roughly 2.88% in the last one year (as of 06/02/2026). In that past 52-week period, it has traded between $60.49 and $68.86.
The ETF has a beta of 0.95 and standard deviation of 14.31% 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 good 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 $1.77 billion in assets, Invesco Water Resources ETF has $1.97 billion. FIW has an expense ratio of 0.5%, 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.