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5-Star ETFs Poised to Pop: Guggenheim S&P Global Water

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Guggenheim S&P Global Water (NYSE: CGW  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Guggenheim S&P Global Water and see what CAPS investors are saying about the ETF right now.

Guggenheim S&P Global Water facts

Inception May 2007
Total Assets $200.9 million
Investment Approach Seeks investment results that correspond to the S&P Global Water NR Index, which is designed to have a balanced representation from different segments of the water industry.
Expense Ratio 0.65%
Year-to-Date / 1-Year / 3-Year Return (4.6%) / (0.7%) / 10.1%
Top Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight

Veolia Environnement (NYSE: VE  ) (4.3%)

Sabesp (NYSE: SBS  ) (3.6%)

Aqua America (NYSE: WTR  ) (3.5%)

Dividend Yield 2.1%
Alternatives

PowerShares Water Resources (NYSE: PHO  )

PowerShares Global Water (NYSE: PIO  )

Source: Morningstar and Motley Fool CAPS.

On CAPS, 96% of the 170 members who have rated Guggenheim S&P Global Water believe the ETF will outperform the S&P 500 going forward. These bulls include donjuansw and Trade4Profits.

Earlier this year, donjuansw summed up the bull case: "Potable water is scarce in many places already, and with the population boom in developing nations this situation is only going to get worse. Scarcity and pollution, coupled with population growth means that this long-term play will pay off."

Guggenheim S&P Global Water, in particular, sports a dividend yield of 2.1%. That's higher than that of other water ETFs such as PowerShares Water Resources (1%) and PowerShares Global Water (1.7%).

CAPS member Trade4Profits elaborates on the bull case:

Limited supply and high demand make industries surrounding water -- its supply, management, and exchange-traded funds -- attractive opportunities. Water is the one commodity where demand is not subject to the pressures of macroeconomics. Demand for clean water supply and improved water infrastructure is growing around the globe -- driven by a rising population, increased industrial demand, and the need to upgrade or replace the aging pipes carrying our water.

The 21st Century Commodity: Great [long-term] Investment.

What do you think about Guggenheim S&P Global Water, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Guggenheim S&P Global Water? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Veolia, Sabesp, and Aqua America. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 09, 2011, at 8:49 AM, feawtewa wrote:

    They left out the time frame, i believe I read somewhere its supposed to be 20 years or so. I don't understand, is there no room for hard facts?

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