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Should You Invest in the Invesco Water Resources ETF (PHO)?
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If you're interested in broad exposure to the Industrials - Water segment of the equity market, look no further than the Invesco Water Resources ETF (PHO - Free Report) , a passively managed exchange traded fund launched on 12/06/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $2.06 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Water segment of the equity market. PHO seeks to match the performance of the NASDAQ OMX US Water Index before fees and expenses.
The NASDAQ OMX US Water Index tracks the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 60.80% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Ferguson Plc (FERG - Free Report) accounts for about 8.27% of total assets, followed by Veralto Corp (VLTO - Free Report) and Danaher Corp (DHR - Free Report) .
The top 10 holdings account for about 59.97% of total assets under management.
Performance and Risk
The ETF has added about 5.87% and was up about 22.90% so far this year and in the past one year (as of 03/04/2024), respectively. PHO has traded between $49.77 and $64.43 during this last 52-week period.
The ETF has a beta of 0.98 and standard deviation of 19.18% for the trailing three-year period, making it a medium risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Water Resources ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PHO is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco S&P Global Water Index ETF (CGW - Free Report) tracks S&P GLOBAL WATER INDEX and the First Trust Water ETF (FIW - Free Report) tracks ISE Clean Edge Water Index. Invesco S&P Global Water Index ETF has $960.32 million in assets, First Trust Water ETF has $1.58 billion. CGW has an expense ratio of 0.57% and FIW charges 0.53%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Invesco Water Resources ETF (PHO)?
If you're interested in broad exposure to the Industrials - Water segment of the equity market, look no further than the Invesco Water Resources ETF (PHO - Free Report) , a passively managed exchange traded fund launched on 12/06/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $2.06 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Water segment of the equity market. PHO seeks to match the performance of the NASDAQ OMX US Water Index before fees and expenses.
The NASDAQ OMX US Water Index tracks the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 60.80% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Ferguson Plc (FERG - Free Report) accounts for about 8.27% of total assets, followed by Veralto Corp (VLTO - Free Report) and Danaher Corp (DHR - Free Report) .
The top 10 holdings account for about 59.97% of total assets under management.
Performance and Risk
The ETF has added about 5.87% and was up about 22.90% so far this year and in the past one year (as of 03/04/2024), respectively. PHO has traded between $49.77 and $64.43 during this last 52-week period.
The ETF has a beta of 0.98 and standard deviation of 19.18% for the trailing three-year period, making it a medium risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Water Resources ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PHO is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco S&P Global Water Index ETF (CGW - Free Report) tracks S&P GLOBAL WATER INDEX and the First Trust Water ETF (FIW - Free Report) tracks ISE Clean Edge Water Index. Invesco S&P Global Water Index ETF has $960.32 million in assets, First Trust Water ETF has $1.58 billion. CGW has an expense ratio of 0.57% and FIW charges 0.53%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.