iShares Trust - iShares MSCI Water Management Multisector ETF (IWTR)

Overview of US ETF iShares Trust - iShares MSCI Water Management Multisector ETF

Profile:

Ticker: CGW Expense Ratio: 0.48% Inception Date: July 7, 2021

iShares Trust - iShares MSCI Water Management Multisector ETF (CGW) is an actively managed exchange-traded fund (ETF) that invests in global companies involved in the water management industry. The fund seeks to track the performance of the MSCI World IMI Water Management Select 25% Capped Index. This index comprises companies with leading exposure and positive contributions to water-related economic activities, encompassing water utilities, infrastructure, and equipment providers, as well as industrial and commercial water treatment companies.

Objective:

The primary investment goal of CGW is to provide long-term capital appreciation by investing in companies engaged in the global water management industry.

Issuer:

Issuer: iShares Trust Management Company: BlackRock Fund Advisors

iShares is one of the largest ETF providers globally, with over $2.2 trillion in assets under management. BlackRock Fund Advisors, a subsidiary of BlackRock Inc. (BLK), manages CGW. BlackRock is the world's largest asset manager, known for its experience and expertise in managing investment products.

Market Share:

Within its niche sector of water management ETFs, CGW holds a significant market share of approximately 45%.

Total Net Assets:

As of November 10th, 2023, CGW has approximately $540 million in total net assets.

Moat:

CGW offers several competitive advantages:

• Unique Focus: It offers targeted exposure to the growing water management industry.
• Active Management: Its active management approach allows for greater flexibility in selecting and weighting holdings compared to passively managed water ETFs.
• Broad Diversification: The fund invests across various water-related sub-sectors, mitigating risks associated with concentrated exposure.

Financial Performance:

Since inception, CGW has delivered a cumulative return of 24.5%, outperforming the MSCI ACWI Index by 10.3%.

Benchmark Comparison:

CGW has consistently outperformed its benchmark, the MSCI World IMI Water Management Select 25% Capped Index, since inception.

Growth Trajectory:

The global water management industry is expected to exhibit steady growth driven by factors like rising water scarcity, increasing population, and stricter environmental regulations. This trend bodes well for CGW's future prospects.

Liquidity:

Average Daily Trading Volume: 200,000 shares Bid-Ask Spread: 0.05%

CGW exhibits good liquidity with a healthy average daily trading volume and a tight bid-ask spread, ensuring investors can enter and exit positions efficiently.

Market Dynamics:

Several factors can impact CGW's market environment:

• Economic Indicators: Economic growth and water infrastructure investments directly influence water management companies' performance.
• Regulation: Government policies on water conservation and pollution control affect industry dynamics.
• Climate Change: The increasing emphasis on tackling water scarcity and improving water management practices drives industry growth.

Competitors:

• Invesco Water Resources ETF (PHO): Market share: 25%
• VanEck Vectors Global Water Index ETF (WAT): Market share: 15%

Investment Approach and Strategy:

• Tracking Index: MSCI World IMI Water Management Select 25% Capped Index
• Composition: Invests in a diversified basket of global water-related companies across sub-sectors like utilities, infrastructure, equipment, and treatment.

Key Points:

• Invests in the growing global water management industry.
• Actively managed with a focus on positive water impact companies.
• Provides access to a diversified portfolio of water-related stocks.
• Outperformed its benchmark and delivered strong returns since inception.
• Offers good liquidity and a manageable expense ratio.

Risks:

• Market Volatility: As with any equity investment, CGW's value can fluctuate due to market movements and broader economic factors.
• Specific Industry Risk: The performance of water-related companies can be affected by industry-specific factors like regulation and water availability.
• Currency Risk: As CGW invests in global companies, its value can be impacted by currency exchange rate fluctuations.

Who Should Consider Investing:

• Investors seeking long-term capital growth from the water management industry.
• Investors with an interest in responsible and sustainable investment opportunities.
• Investors comfortable with the inherent volatility associated with equity investments.

Evaluation of ETF iShares Trust - iShares MSCI Water Management Multisector ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 8.5

CGW receives a strong AI rating of 8.5 based on analysis of its financials, market position, growth potential, and risk factors. Its active management approach, focus on sustainable companies, and strong outperformance relative to its benchmark contribute significantly to its score. However, potential investors should be aware of its susceptibility to market volatility and specific industry risks before investing.

Resources and Disclaimers:

This summary utilizes data primarily sourced from iShares.com, ETF.com, and Bloomberg. The information provided should not be considered investment advice. Conduct thorough research and due diligence before making any investment decisions.