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Asset Class: Miscellaneous Sector
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Best ETF back tested: First Trust Water ETF (FIW)
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Long-Term Performance: 9.58% CAGR
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S&P 500 Performance: 8.23% CAGR
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Back test timeframe: June 2007 – January 2020
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Number of ETFs available in this asset class: 31
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Number of ETFs in this asset class that are 10-years old or older: 15
FIW vs SPY: May 11, 2007 – February 7, 2020
FIW vs SPY: June 2007 – January 2020
The Deep Value ETF Accumulator rankings for the 15 oldest Miscellaneous Sector ETFs:
The 4 top ranked Miscellaneous Sector ETFs head-to-head comparisons:
FIW vs CGW vs PHO vs PZD: June 2007 – January 2020
FIW vs CGW vs PHO vs PZD: May 14, 2007 – February 7, 2020
FIW vs CGW: June 2007 – January 2020
CGW vs PHO: June 2007 – January 2020
PHO vs PZD: November 2006 – January 2020
Stated objectives of 4 top ranked Miscellaneous ETFs:
FIW: The First Trust Water ETF is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE Clean Edge Water Index. The ISE Clean Edge Water Index is a modified market capitalization-weighted index comprised of exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry. The Index begins by establishing the total population of stocks in the potable and wastewater industry and eliminates stocks which do not meet the Index’s baseline eligibility requirements. To meet Index eligibility, a stock must satisfy market capitalization, liquidity and weighting concentration requirements. The Index selects the top 36 stocks in the industry by market capitalization. The Index is rebalanced on the application of the above model on a semi-annual basis.
CGW: The Invesco S&P Global Water Index ETF (the “Fund”) is based on the S&P Global Water Index (the “Index”). The Fund will invest at least 90% of its total assets in the securities American depositary receipts (ADRs) and global depositary receipts (GDRs) that comprise the Index. The Index is comprised of developed market securities including water utilities, infrastructure, equipment, instruments and materials. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are rebalanced semiannually.
PHO: The Invesco Water Resources ETF (Fund) is based on the NASDAQ OMX US Water Index (Index). The Fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (ADRs) and global depositary receipts (GDRs) of companies in the water industry that comprise the Underlying Index. The Underlying Index seeks to track the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The Fund and the Index are rebalanced quarterly and reconstituted annually in April.
PZD: The Invesco Cleantech™ ETF (Fund) is based on the Cleantech Index™ (Index). Cleantech considers a company to be a cleantech company when it derives at least 50% of its revenues or operating profits from cleantech businesses, which are defined as: businesses that provide knowledge-based products or services that add economic value by reducing cost and raising productivity and/or product performance, while reducing the consumption of resources and the negative impact on the environment and public health. The Fund generally invests in all of the securities comprising its Underlying Index in proportion to their weightings in the Underlying Index. The Fund and the Index are rebalanced and reconstituted quarterly.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator articles on Miscellaneous Sector ETFs:
Best Long-Term Performance Miscellaneous Sector ETFs 1.2
Best Long-Term Performance Miscellaneous Sector ETFs 1.1
Disclosure: We currently own shares of FIW and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.