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The First Trust Water ETF (FIW) was launched on May 8, 2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Water segment of the equity market.
Rising U.S. water bills are boosting investment in infrastructure, treatment and regulated utilities, putting water ETFs in focus for investors.
First Trust Water ETF is comprised of 36 U.S. companies that derive a substantial portion of their revenues from the potable and wastewater industry. Its expense ratio is 0.50%. Annual reports from the American Water Works Association consistently highlight the need for massive water infrastructure spending to address long-term affordability issues for millions of households. This has been a challenge for many years, and FIW keeps underperforming the broader market, implying that there's more to consider than just demand.
First Trust Water ETF (NYSEARCA:FIW - Get Free Report) saw a large increase in short interest in September. As of September 15th, there was short interest totaling 18,269 shares, an increase of 216.5% from the August 31st total of 5,773 shares. Currently, 0.1% of the company's stock are sold short. Based on an average trading
Bank of America Corp DE lowered its holdings in First Trust Water ETF (NYSEARCA:FIW) by 1.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 512,084 shares of the company's stock after selling 7,726 shares during the
The First Trust Water ETF (FIW) was launched on May 8, 2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Water segment of the equity market.
First Trust Water ETF is downgraded to 'sell' due to persistent weak fundamentals and lackluster performance. FIW's static, market-cap-weighted portfolio results in low turnover but limited improvement in quality, growth, and value metrics since my last review in February. Key portfolio metrics—high P/E ratios, weak EBIT margins, and low ROIC—continue to undermine FIW's risk-adjusted returns.
Data centers receive sharp criticism for their high water usage, but the impact on the broader water industry and for investors is also about infrastructure bottlenecks, regulation, and emerging technologies, among other things. Utilities companies must navigate significant changes when hyperscalers enter their territory—in some cases, a new data center operator may immediately become one of the largest customers in the region.