CGW: INVESCO S&P GLOBAL WATER INDEX ETF
What this ETF is trying to do
The Invesco S&P Global Water Index ETF (ticker: CGW) is an exchange-traded fund that focuses on the water industry. It holds a variety of companies involved in different parts of the water sector. This list of holdings is partial, meaning we are only looking at some of the largest companies in the fund.
Top Holdings:
• American Water Works Co Inc: 8.23%
• Xylem Inc: 7.50%
• Essential Utilities Inc: 5.82%
• United Utilities Group PLC Class A: 5.82%
• Severn Trent PLC: 5.28%
• Veralto Corp: 4.77%
• Ecolab Inc: 4.16%
• Geberit AG: 3.84%
• Watts Water Technologies Inc Class A: 3.42%
• Advanced Drainage Systems Inc: 3.40%
What the numbers show
The current price of one share is $63.99. An estimated price from roughly one year ago was about $63.57.
When looking at how this ETF has performed, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions (dividends) paid out.
• One-Year Performance: The one-year price return was approximately 0.66%. However, the one-year total return was higher, at about 2.25%.
• Three-Year Performance: Over three years, the price return was approximately 38.48%, while the total return was approximately 46.12%.
• Year-to-Date (YTD): So far this year, both the price return and the total return are approximately 1.55%.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. The distribution yield for this ETF is approximately 1.56%. This number describes the cash paid out relative to the ETF's price. It is important to remember that a high yield does not mean you earned that same amount in total return.
The trailing distributions were approximately $0.9959 per share. The data shows that these payments happen on an irregular or less frequent basis.
NAV erosion explanation
"NAV erosion" refers to a decline in the value of the underlying assets that make up the ETF. StockValueFinder uses an "erosion-risk score" to measure this risk.
For CGW, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag. This means the fund's price trends do not currently trigger a severe warning for erosion risk.
Pros
• Positive Long-Term Returns: The ETF has shown positive total returns over one, three, and five years.
• Stability: The erosion-risk score suggests the fund is currently stable.
Cons
• Irregular Income: Distributions are not paid out on a regular, predictable schedule.
• Low Recent Price Growth: The one-year price return was relatively low at approximately 0.66%.
Beginner takeaway
When studying CGW, remember that the share price and the total return are different numbers. If you only look at the share price, you might miss the extra value provided by distributions. Also, while this ETF pays a distribution yield, those payments happen irregularly. Always look at both the price movement and the total return to get the full picture.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | n/a | 9.23% |
| 2 | AMERICAN WATER WORKS CO INC | AWK | 7.88% |
| 3 | XYLEM INC | XYL | 7.00% |
| 4 | ESSENTIAL UTILITIES INC | WTRG | 5.69% |
| 5 | UNITED UTILITIES GROUP PLC CLASS A | n/a | 5.69% |
| 6 | SEVERN TRENT PLC | n/a | 5.13% |
| 7 | VERALTO CORP | VLTO | 4.79% |
| 8 | ECOLAB INC | ECL | 4.14% |
| 9 | GEBERIT AG | n/a | 3.48% |
| 10 | WATTS WATER TECHNOLOGIES INC CLASS A | WTS | 3.32% |