ETF Evaluator:
Invesco Water Resources ETF ()
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(as of Aug 26)
Best Performing in Natural Resources Over the Last Year
| 88.7% | Global X Copper Miners ETF (COPX) |
| 83.8% | Themes Copper Miners ETF (COPA) |
| 82.3% | Sprott Copper Miners ETF (COPP) |
| 81.2% | Sprott Junior Copper Miners ETF (COPJ) |
| 76.4% | iShares Copper and Metals Mining ETF (ICOP) |
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ETF Details
Invesco Water Resources ETF Overview
Invesco Water Resources ETF (PHO) is a passively managed Sector Equity Natural Resources exchange-traded fund (ETF). Invesco launched the ETF in 2005.
The investment seeks to track the investment results (before fees and expenses) of the NASDAQ OMX U.S. Water IndexSM (the "underlying index").
The fund generally will invest at least 90% of its total assets in securities that comprise the underlying index. The underlying index seeks to track the performance of companies that create products designed to conserve and purify water for homes, businesses and industries. The underlying index is designed to track the performance of U.S. exchange-listed companies that create products that conserve and purify water for homes, businesses, and industries. The fund is non-diversified.
About Invesco Water Resources ETF (PHO)
There are 3 members of the management team with an average tenure of 14.35 years: Peter Hubbard (2007), Michael Jeanette (2008) and Pratik Doshi (2020). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and NASDAQ OMX US Water TR USD index with a weighting of 100%. Invesco Water Resources ETF has 42 securities in its portfolio. The top 10 holdings constitute 57.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is considered to have an ESG focus with its investment selection and management.
Invesco Water Resources ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Invesco Water Resources ETF has 1.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.4% There is 1.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco Water Resources ETF has 0.1% of the portfolio in cash.
Assets Under Management
The fund has $2 billion in total assets, which is above the $1 billion average for the Natural Resources category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PHO Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco Water Resources ETF expense ratio is average compared to funds in the Natural Resources category. Invesco Water Resources ETF has an expense ratio of 0.59%, which is 12% higher than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco Water Resources ETF has a portfolio turnover rate of 34%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 41% for the Natural Resources category.
Recently, in the month of July 2026, Invesco Water Resources ETF returned 1.5%, which earned it a grade of B, as the Natural Resources category had an average return of -2.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Invesco Water Resources ETF has a trailing yield of 0.58%, which is below the 2.30% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Invesco Water Resources ETF Grades
Year to date, the ETF has returned 0.0%, 6.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 0.1% over the past year (grade of F), 7.2% over the past three years (grade of D) and 4.9% per year over the past five years (grade of D) and 11.7% per year over the past 10 years (grade of B).
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PHO Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PHO Return (NAV) | 1.5% | 2.3% | 0.1% | 7.2% | 4.9% | 11.7% |
| PHO Return (Price) | 1.6% | 2.3% | 0.2% | 7.2% | 4.9% | 11.7% |
| NAV +/- Price Return | -0.088% | -0.059% | -0.029% | -0.022% | -0.002% | -0.005% |
| Natural Resources Avg | -2.2% | -9.2% | 33.5% | 9.8% | 7.4% | 10.4% |
| PHO Grade (NAV) | B | A | F | D | D | B |
| +/- Category (NAV) | 3.7% | 11.5% | -33.4% | -2.6% | -2.5% | 1.3% |
| PHO Tax-Cost Ratio | na | na | 0.2% | 0.2% | 0.2% | 0.2% |
PHO Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PHO Return (NAV) | 0.0% | 7.5% | 8.6% | 18.9% | -14.9% | 31.3% | 20.8% | 37.5% | -6.3% | 23.6% | 13.9% |
| PHO Return (Price) | -0.0% | 7.6% | 8.6% | 18.9% | -14.9% | 31.3% | 20.8% | 37.6% | -6.4% | 23.5% | 14.0% |
| NAV +/- Price Ret | -1.038% | 0.012% | -0.002% | -0.004% | -0.001% | 0.001% | 0.002% | 0.3% | 2.1% | -0.0% | 1.1% |
| Natural Resources Avg | 6.5% | 43.5% | -6.0% | 9.9% | -7.3% | 30.1% | 22.9% | 18.4% | -16.7% | 25.1% | 28.4% |
| PHO Grade (NAV) | D | F | A | B | D | B | B | A | A | C | D |
| +/- Category | -6.5% | -36.0% | 14.6% | 9.1% | -7.5% | 1.2% | -2.1% | 19.0% | 10.4% | -1.6% | -14.5% |
| Risk Measures | |
| Beta: | 0.90 |
| R-Squared: | 52% |
| Standard Deviation: | 15.8% |
| Category Risk Index: | 0.65 |
| Category Risk Rating: | Low |
| Total Risk Index: | 1.29 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 0.6% |
| Total Assets: | $ 2,002 Mil |
| Share Class Assets: | $ 2,002 Mil |
| Turnover: | 34.0% |
| Expense Ratio: | 0.59% |
| Index Fund: | Yes |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | Yes |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 19.2 years | |||
| Average Tenure: 14.3 years | |||
| Managers (Year): Hubbard Peter (2007), Jeanette Michael (2008), Doshi Pratik (2020) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 42 |
| % in Top 10 Holdings: | 57.4% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 1.5% |
Portfolio Allocation |
|
| Domestic Stock: | 98.4% |
| Foreign Stock: | 1.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.1% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Invesco |
| Phone Number: | 800-983-0903 |
| Website: | www.invescopowershares.com |
| Inception Date: | December 6, 2005 |
Expenses and Fees
| Expense Ratio (%): | 0.59% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.53% |
