First Trust Water ETF (FIW)

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Summary

The First Trust Water ETF (FIW) tracks the ISE Clean Edge Water Index. It is an alternative sector fund with a few dozen holdings related to water technology, infrastructure, utilities, etc.

Investment Thesis

FIW is probably not a core fund for the retirement account. It is a unique alternative investment centered around the theme of water. It is currently expensive from both the valuation and expense ratio perspectives, but it is a highly rated fund that has an interesting portfolio of holdings that is worth a look.

Statistics

Updated May 31, 2018:

  • Total Assets: $299.7 million
  • Total Holdings: 38
  • Portfolio Turnover: 24%
  • Net Expense Ratio: 0.56%
  • Distribution Yield: 0.68%
  • P/E Ratio: 28.51
  • Alpha: 8.38
  • Beta: 0.83

Analysis

Morningstar

  • 4-Star Overall Rating
  • Mid Cap Growth Style
  • Average Historic Return
  • Below Average Historic Risk

Portfolio

Country Allocation

  • USA: 98.28%
  • Brazil: 1.72%

Sector Allocation

  • Industrials: 56.21%
  • Utilities: 21.55%
  • Healthcare: 11.99%
  • Materials: 5.68%
  • Technology: 4.55%

Market Cap Allocation

  • Giant: 0.00%
  • Large: 21.93%
  • Mid: 30.35%
  • Small: 30.35%
  • Micro: 4.24%

Top Ten Holdings

  1. IDEXX Laboratories (IDXX) – Medical Equipment
  2. Ecolab Inc (ECL) – Specialty Chemicals
  3. American Water Works (AWK) – Water Utilities
  4. Danaher Corp (DHR) – Medical Equipment
  5. IDEX Corp (IEX) – Industrial Machinery
  6. Roper Technologies (ROP) – Industrial Conglomerates
  7. A.O. Smith Corp (AOS) – Building Products
  8. Pentair PLC (PNR) – Industrial Machinery
  9. Xylem Inc (XYL) – Industrial Machinery
  10. Aqua America (WTR) – Water Utilities

 

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