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Should You Invest in the Invesco Global Water ETF (PIO)?
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Launched on June 13, 2007, the Invesco Global Water ETF (PIO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Water segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $275.52 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. PIO seeks to match the performance of the NASDAQ OMX Global Water Index before fees and expenses.
The NASDAQ OMX Global Water Index is designed to track the performance of companies worldwide that are creating products that conserve and purify water for homes, businesses and industries.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.08%.
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.Looking at individual holdings, Pentair Plc (PNR) accounts for about 7.93% of total assets, followed by Ecolab Inc (ECL) and Veolia Environnement Sa (VIE).
The top 10 holdings account for about 59.1% of total assets under management.
Performance and Risk
The ETF has gained about 15.54% so far this year and is up roughly 6.25% in the last one year (as of 09/22/2025). In that past 52-week period, it has traded between $35.79 and $45.736.
The ETF has a beta of 1.01 and standard deviation of 17.19% for the trailing three-year period, making it a medium risk choice in the space. With about 46 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Global Water 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, PIO 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.
First Trust Water ETF (FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (PHO) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.93 billion in assets, Invesco Water Resources ETF has $2.23 billion. FIW has an expense ratio of 0.51%, and PHO charges 0.59%.
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 Global Water ETF (PIO)?
Launched on June 13, 2007, the Invesco Global Water ETF (PIO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Water segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $275.52 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. PIO seeks to match the performance of the NASDAQ OMX Global Water Index before fees and expenses.
The NASDAQ OMX Global Water Index is designed to track the performance of companies worldwide that are creating products that conserve and purify water for homes, businesses and industries.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 1.08%.
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.Looking at individual holdings, Pentair Plc (PNR) accounts for about 7.93% of total assets, followed by Ecolab Inc (ECL) and Veolia Environnement Sa (VIE).
The top 10 holdings account for about 59.1% of total assets under management.
Performance and Risk
The ETF has gained about 15.54% so far this year and is up roughly 6.25% in the last one year (as of 09/22/2025). In that past 52-week period, it has traded between $35.79 and $45.736.
The ETF has a beta of 1.01 and standard deviation of 17.19% for the trailing three-year period, making it a medium risk choice in the space. With about 46 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Global Water 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, PIO 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.
First Trust Water ETF (FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (PHO) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.93 billion in assets, Invesco Water Resources ETF has $2.23 billion. FIW has an expense ratio of 0.51%, and PHO charges 0.59%.
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.