Opinions
Larry Berman CFA, CMT, CTA
ISHARES SP GLOBAL WATER IDX ETF
CWW-T
WEAK BUY
Feb 10, 2025
$58.530
Stock price when the opinion was issued
E.T.F.'s
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DON'T BUY
A long-term hold to buy on dips. Not a fan of water stocks. Limits your water stocks to 5% on your portfolio. If you want dividends, go to banks and utilities. These stocks will grow, but likely valuations will run ahead of the stocks. Better to donate to a water charity than buying water stocks.
E.T.F.'s
BUY
He's used it in the past, buy uses something else with more diversity. But CWW is good with fine diversification and has performed well this year. We're in a world dealing with climate change and drought. So getting water to people is becoming a bigger deal and therefore more demand for companies that deal in water. CWW is fairly safe for this need for water.
E.T.F.'s
BUY ON WEAKNESS
Why do the dividends on this and similar ETFs fluctuate so much from quarter to quarter? The lumpiness may be due to M&A activity in the space and CQQ had to distribute a capital gain; or some international stocks pay dividends only once a year, so they're lumpy. Water infrastructure is so essential to human life, and this infrastructure is 100 years old and needs repair. A massive opportunity to rebuild and fix this, but the water space is not cheap.
E.T.F.'s
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Two different companies; one trades in Toronto, and the other in New York. Essentially based on the identical global water index. Ask yourself if you want to own it in CAD or USD, and that will depend on what type of investment account you have. With CWW, most of the underlying securities are not in Canada.
Likes them both. He uses the AQWA ETF, which has better exposure.