Should You Invest in the Invesco S&P Global Water Index ETF (CGW)?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
0mins
Source: NASDAQ.COM
- Invesco S&P Global Water Index ETF (CGW): Launched in 2007, passively managed ETF providing exposure to the Industrials - Water segment of the equity market.
- Benefits of Passively Managed ETFs: Low costs, transparency, flexibility, and tax efficiency make them popular among investors for long-term investment.
- Index Details: Sponsored by Invesco, CGW seeks to match the performance of the S&P GLOBAL WATER INDEX comprising developed market securities related to water utilities and infrastructure.
- Costs and Performance: CGW has an expense ratio of 0.56%, a dividend yield of 1.47%, and has shown positive returns over the past year.
- Alternatives and Bottom Line: Investors can consider other ETF options like First Trust Water ETF (FIW) and Invesco Water Resources ETF (PHO) in the same sector. Screening for products matching investment objectives is recommended.
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Analyst Views on AWK
Wall Street analysts forecast AWK stock price to rise
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 128.370
Low
122.00
Averages
129.00
High
139.00
Current: 128.370
Low
122.00
Averages
129.00
High
139.00
About AWK
American Water Works Company, Inc. is a water and wastewater utility company. The Company's primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other businesses that provide water and wastewater services to the United States government on military installations, as well as municipalities. The Company operates its business through the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states. The Company's utilities operate in states such as Pennsylvania, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maryland, Tennessee, Virginia and West Virginia. The Company also serves commercial customers, fire service customers, industrial customers, public authorities, other utilities and community water and wastewater systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Funding: In 2025, the Foundation awarded a total of $1.7 million in grants to 80 organizations across 12 states, including nine organizations in New Jersey, demonstrating the company's ongoing investment and support for local environmental initiatives, thereby strengthening its influence within the community.
- Importance of Community Partnerships: Mark McDonough, President of New Jersey American Water, emphasized that strong community partnerships can significantly improve the quality of life for residents dependent on waterways, indicating the company's strategic role in promoting local environmental projects.
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- PayPal Management Change: Following a 21% drop in PayPal's stock price, the new CEO may consider strategic alternatives; with a current valuation below 8 times forward earnings, any proactive measures from management could trigger a rebound in stock price and restore investor confidence.
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- Historical Funding Review: In 2025, the Foundation awarded a total of $1.7 million in grants to 80 organizations across 12 states, supporting various community organizations including nine based in New Jersey, demonstrating the company's ongoing commitment to local environmental protection.
- Importance of Community Partnerships: Mark McDonough, President of New Jersey American Water, emphasizes that strong community partnerships can significantly improve waterways and the quality of life for residents who depend on them, indicating the company's strategic commitment to sustainable development.
- Long-term Investment Commitment: Since 2012, the Foundation has invested over $25 million through grants and matching gifts to actively support communities, highlighting the company's long-term dedication to environmental protection and social responsibility.
See More
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- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
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New Jersey American Water Launches 2026 Environmental Grant Program
- Grant Program Launch: New Jersey American Water has announced the launch of the 2026 American Water Charitable Foundation Water and Environment Grant Program, inviting community partners to apply for grants aimed at promoting clean water, environmental education, and conservation projects, which is expected to enhance community management of water resources.
- Increased Funding: In 2025, the Foundation awarded a total of $1.7 million in grants to 80 organizations across 12 states, including nine organizations in New Jersey, demonstrating the company's ongoing investment and support for local environmental initiatives, thereby strengthening its influence within the community.
- Importance of Community Partnerships: Mark McDonough, President of New Jersey American Water, emphasized that strong community partnerships can significantly improve the quality of life for residents dependent on waterways, indicating the company's strategic role in promoting local environmental projects.
- Long-term Investment Commitment: Since 2012, the Foundation has invested over $25 million through grants and matching gifts to actively support communities, reflecting the company's commitment to sustainability and laying the groundwork for future environmental initiatives.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
Market Sell-Off Drives Tech Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, highlighting its robust growth potential in payroll processing.
- Merger Prospects for AWK: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, yet its merger with Essential Utilities has shareholder approval; if regulatory approval is granted, it could help maintain long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a 21% drop in PayPal's stock price, the new CEO may consider strategic alternatives; with a current valuation below 8 times forward earnings, any proactive measures from management could trigger a rebound in stock price and restore investor confidence.
- Widespread AI Concerns: The market's apprehension regarding the potential disruptive impact of generative AI across various sectors has led to significant sell-offs, affecting not only tech stocks but also non-tech names, reflecting a cautious investor sentiment about the economic outlook.
See More
New Jersey American Water Launches 2026 Environmental Grant Program
- Grant Program Launch: New Jersey American Water announces the 2026 American Water Charitable Foundation Water and Environment Grant Program, inviting community partners to apply for grants aimed at promoting clean water, environmental education, and water-based recreation projects, which is expected to enhance community environmental quality.
- Historical Funding Review: In 2025, the Foundation awarded a total of $1.7 million in grants to 80 organizations across 12 states, supporting various community organizations including nine based in New Jersey, demonstrating the company's ongoing commitment to local environmental protection.
- Importance of Community Partnerships: Mark McDonough, President of New Jersey American Water, emphasizes that strong community partnerships can significantly improve waterways and the quality of life for residents who depend on them, indicating the company's strategic commitment to sustainable development.
- Long-term Investment Commitment: Since 2012, the Foundation has invested over $25 million through grants and matching gifts to actively support communities, highlighting the company's long-term dedication to environmental protection and social responsibility.
See More
White House Considers Cost Burden on Data Centers
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
