ETF Evaluator:
First Trust Water ETF (FIW)
Follow This ETF
(as of Aug 14)
Best Performing in Natural Resources Over the Last Year
| 88.7% | Global X Copper Miners ETF (COPX) |
| 83.8% | Themes Copper Miners ETF (COPA) |
| 82.3% | Sprott Copper Miners ETF (COPP) |
| 81.2% | Sprott Junior Copper Miners ETF (COPJ) |
| 76.4% | iShares Copper and Metals Mining ETF (ICOP) |
Risk
Index
Risk
Index
ETF Details
First Trust Water ETF Overview
First Trust Water ETF (FIW) is a passively managed Sector Equity Natural Resources exchange-traded fund (ETF). First Trust launched the ETF in 2007.
The investment seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an equity index called the ISE Clean Edge Water TM Index.
The fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the index. The index is designed to track the performance of small, mid and large capitalization companies that derive a substantial portion of their revenues from the potable water and wastewater industry, according to Clean Edge.
About First Trust Water ETF (FIW)
There are 7 members of the management team with an average tenure of 16.02 years: Daniel Lindquist (2007), Jon Erickson (2007), David McGarel (2007), Stan Ueland (2007), Chris Peterson (2016), Erik Russo (2020) and Roger Testin (2007). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and ISE Clean Edge Water TR USD index with a weighting of 100%. First Trust Water ETF has 38 securities in its portfolio. The top 10 holdings constitute 42.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is considered to have an ESG focus with its investment selection and management.
First Trust Water ETF is part of the Equity global asset class and is within the Sector Equity ETF group. First Trust Water ETF has 5.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 94.6% There is 5.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Water ETF has 0.1% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $1 billion average for the Natural Resources category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FIW Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Water ETF expense ratio is average compared to funds in the Natural Resources category. First Trust Water ETF has an expense ratio of 0.50%, which is 5% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Water ETF has a portfolio turnover rate of 14%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 41% for the Natural Resources category.
Recently, in the month of July 2026, First Trust Water ETF returned -0.8%, which earned it a grade of C, as the Natural Resources category had an average return of -2.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
First Trust Water ETF has a trailing yield of 0.72%, which is below the 2.30% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
First Trust Water ETF Grades
Year to date, the ETF has returned 0.3%, 6.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 0.7% over the past year (grade of F), 6.7% over the past three years (grade of D) and 5.1% per year over the past five years (grade of D) and 12.3% per year over the past 10 years (grade of A).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about First Trust Water ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
FIW Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FIW Return (NAV) | -0.8% | 1.5% | 0.7% | 6.7% | 5.1% | 12.3% |
| FIW Return (Price) | -0.7% | 1.6% | 0.9% | 6.7% | 5.1% | 12.3% |
| NAV +/- Price Return | -0.091% | -0.084% | -0.167% | -0.016% | -0.021% | 0.001% |
| Natural Resources Avg | -2.2% | -9.2% | 33.5% | 9.8% | 7.4% | 10.4% |
| FIW Grade (NAV) | C | A | F | D | D | A |
| +/- Category (NAV) | 1.4% | 10.7% | -32.8% | -3.1% | -2.3% | 1.9% |
| FIW Tax-Cost Ratio | na | na | 0.2% | 0.2% | 0.2% | 0.2% |
FIW Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FIW Return (NAV) | 0.3% | 7.2% | 8.4% | 20.4% | -15.7% | 31.9% | 21.2% | 37.1% | -8.9% | 24.3% | 32.2% |
| FIW Return (Price) | 0.4% | 7.2% | 8.4% | 20.3% | -15.7% | 32.0% | 21.1% | 37.4% | -9.2% | 24.7% | 32.1% |
| NAV +/- Price Ret | 0.316% | 0.001% | 0.003% | -0.003% | 0.003% | 0.003% | -0.004% | 0.7% | 3.8% | 1.8% | -0.2% |
| Natural Resources Avg | 6.5% | 43.5% | -6.0% | 9.9% | -7.3% | 30.1% | 22.9% | 18.4% | -16.7% | 25.1% | 28.4% |
| FIW Grade (NAV) | D | F | A | A | D | B | B | A | A | B | A |
| +/- Category | -6.1% | -36.3% | 14.3% | 10.5% | -8.3% | 1.8% | -1.7% | 18.7% | 7.8% | -0.9% | 3.9% |
| Risk Measures | |
| Beta: | 0.97 |
| R-Squared: | 56% |
| Standard Deviation: | 16.3% |
| Category Risk Index: | 0.68 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 1.33 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 0.7% |
| Total Assets: | $ 1,857 Mil |
| Share Class Assets: | $ 1,857 Mil |
| Turnover: | 14.0% |
| Expense Ratio: | 0.50% |
| Index Fund: | Yes |
| Index Tracked: | Russell 3000 TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | Yes |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 7 | |||
| Longest Tenure: 19.2 years | |||
| Average Tenure: 16.0 years | |||
| Managers (Year): Lindquist Daniel (2007), Erickson Jon (2007), McGarel David (2007), Ueland Stan (2007), Testin Roger (2007), Peterson Chris (2016), Russo Erik (2020) | |||
Portfolio Composition (as of 7/30/26)
| # of Holdings: | 38 |
| % in Top 10 Holdings: | 42.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 5.3% |
Portfolio Allocation |
|
| Domestic Stock: | 94.6% |
| Foreign Stock: | 5.3% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.1% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | First Trust |
| Phone Number: | 800-621-1675 |
| Website: | www.ftportfolios.com |
| Inception Date: | May 8, 2007 |
Expenses and Fees
| Expense Ratio (%): | 0.50% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.53% |
