FIW: The Best Choice If You're Determined To Own A Water ETF

Summary

• FIW is the top-performing water-themed ETF over the past decade, even rivaling the S&P 500 from the perspective of long-term returns.
• While water as an ETF theme is imperfect, FIW offers the purest economic exposure to the water sector available to investors.
• I rate FIW a hold, due to intrinsic challenges in capturing true water exposure, some poorly calibrated holdings, and more attractive long-term opportunities in other market sectors.

Gary Yeowell

Investment Thesis

First Trust Water (NYSEARCA:FIW) has been the best performing water-themed ETF over the past decade and has offered competitive long-term performance even when compared with the fantastic record of the S&P 500. While I am

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.