FIW: Fundamentals Not Compelling For This $2B Water ETF

FIW is a well-established thematic water ETF with a 0.51% net expense ratio and $2.01B in assets under management. Established in 2007, it's delivered competitive returns with S&P 500 ETFs. However, except for the first few weeks of 2026, FIW has consistently trailed SPY with greater volatility. Overall, its small/mid-cap tilt has not helped, which is reflected in the fundamentals. With a $21B weighted market cap, FIW doesn't have the same quality features as SPY. However, its 23x forward P/E is elevated, and its portfolio-level earnings growth rates are low.

Seeking Alpha • Feb 11, 2026

Should You Invest in the First Trust Water ETF (FIW)?

Designed to provide broad exposure to the Industrials - Water segment of the equity market, the First Trust Water ETF (FIW) is a passively managed exchange traded fund launched on May 8, 2007.

Zacks Investment Research • Jan 28, 2026

FIW: An Investment In The Oil Of The 21st Century

First Trust Water ETF offers exposure to companies addressing global water scarcity, a critical issue driven by population growth and climate change. FIW stands out among water ETFs for its focus on potable and wastewater engineering, competitive returns, and strong liquidity. Top holdings, like WAT, A, FERG, and XYL, position FIW to benefit from rising demand for water infrastructure and technology solutions.

Seeking Alpha • Dec 1, 2025

FIW: Water Valuations Recover, But Earnings Signals Disappoint

FIW is comprised of 36 companies operating in the potable and wastewater industry. Its expense ratio is 0.51%, and the ETF has $1.92B in assets under management. FIW has outperformed the S&P 500 Index over the last decade, but it's struggled recently. My last analysis in November urged caution based on high valuation and weak earnings momentum. This article provides an update to those fundamentals and highlights how FIW's valuation has improved. With growth rates staying stable, FIW's forward P/E dropped by 6%.

Seeking Alpha • Oct 2, 2025

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

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.

Seeking Alpha • Jul 16, 2025

FIW: Water Remains Expensive

FIW holds 36 companies involved in the potable and wastewater industry. It's well established with $1.84 billion in AUM, but its 0.53% expense ratio is on the high end. Valuation is also concerning. FIW trades at 24.28 forward earnings and only offers 10.01% estimated earnings growth, both of which are worse than XLI, the broad-based Industrials sector ETF. I also found FIW's earnings momentum underwhelming. On average, its components delivered only a 3.47% earnings surprise last quarter.

Seeking Alpha • Nov 5, 2024

A Look At My 10 ETF Holdings

My investment strategy focuses on generating income from dividends and distributions, supplemented by writing covered calls and cash-secured puts. More broadly, I hold a mix of high-yield and dividend-growth investments, with the approach of both receiving high cash flow and seeing it grow over time as well. With my ETF approach, there are funds that fit both of these categories, some really "boring" names and then those that get more interesting in the "reaching-for-yield" category.

Seeking Alpha • Oct 7, 2024

FIW: Popular Investment Theme Trading At Elevated Valuations

First Trust Water ETF provides exposure to companies in the freshwater treatment and distribution industry. The FIW ETF has a 5-year compounded annual return of 15.0%, outperforming the S&P 500 Index. However, its portfolio is currently trading at 29.3x P/E. While I like the water treatment and distribution investment theme, I am hesitant to invest at current valuations.

Seeking Alpha • Aug 19, 2024

FIW: Still Expensive, But This Water ETF Is Flowing In The Right Direction

The First Trust Water ETF holds 36 companies that derive a substantial portion of their revenues from the potable water and wastewater industry. Over the last two years, I have relied on fundamental analysis to justify not buying FIW. In previous reviews, I've noted issues with FIW's valuation, quality, and earnings momentum. FIW has shown improvement on these factors over the last year, and despite it offering solid growth potential, it trades at 23.25x earnings, a rich multiple for the Industrial sector.

Seeking Alpha • Jun 7, 2024

Dive Into These ETFs on World Water Day

Let's dedicate Mar 22 to safe and sufficient water. The water industry seems an excellent investment option to tap the growth.

Zacks Investment Research • Mar 22, 2024