Invesco Water Resources ETF

Invesco Water Resources ETF (PHO) is an index fund that holds the US-listed companies in the Nasdaq OMX US Water Index. These are businesses that make products to conserve and purify water. With about $2.0 billion in net assets as of July 31, 2026, it is the largest of the eight similar funds compared here. But its 0.59% expense ratio is higher than the 0.53% of First Trust Water ETF (FIW), which shares 73% of its holdings.

• Over the year to Oct 27, 2026, PHO returned -1.6%, 4th of 8 among similar funds.
• Its 5-year annualized return was +5.6% and its 10-year +12.5%.
• In the 2020 COVID crash it fell 34.8% and regained its old high 6.5 months after the low.
• Its worst full calendar year was 2008 (-32.4%); its best was 2019 (+37.6%).
• The deepest fall in its price history was 55.6% (Jun 5, 2008 to Mar 9, 2009), recovered by Jan 29, 2013.

As of Jul 31, 2026, the fund held 40 securities; the ten largest made up 57.47% of assets. It also reported 7.4% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $118.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.07%, +5.03%, +1.49%.

PHO tracks the Nasdaq OMX US Water Index, which Nasdaq, Inc. compiles. The index picks companies listed on the NYSE, NYSE American, Cboe or Nasdaq that create products to conserve and purify water for homes, businesses and industries. It can include common stocks and American depositary receipts (ADRs), which are US-traded certificates that stand for shares of foreign companies. As of June 30, 2026, the index had 40 members, with market values from $465 million to $78.4 billion.

The fund uses "full replication." That means it generally owns every stock in the index, in the same proportions as the index. It must keep at least 80% of net assets in water-industry companies, and it counts the index's members as those companies. Because it follows the index, it generally buys or sells a stock only when the index adds or drops it, even if that stock is doing poorly. The prospectus reports portfolio turnover of 34%.

PHO is "non-diversified," so it can put more of its money into a few companies than a diversified fund can. As of July 31, 2026, Roper Technologies (9.1%) and Ecolab (8.2%) were the largest holdings, followed by Ferguson Enterprises, Waters Corp. and IDEXX Laboratories. The top 10 made up 57.5% of the fund, and about 95% was in US companies.

• PHO charges 0.59% a year, versus an average of 0.54% for the similar funds below (6th of 8, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $60 in the first year and $738 over 10 years (assuming a 5% annual return).

PHO is a narrow, non-diversified bet on one theme, and it has fallen by more than half in the past, so it fits best as a small slice next to broader holdings.

PHO adds focused exposure to water-related companies, but it has had deep drops. It fell 55.6% between June 5, 2008, and March 9, 2009, and did not get back to its earlier peak until January 29, 2013. Its worst calendar year was 2008, when it lost 32.4%. It dropped 34.8% in the 2020 COVID crash and had recovered by October 7, 2020. In 2022 it fell 27.4% and did not recover until December 14, 2023. Anyone who had to sell shares during those stretches would have locked in losses. Income is small: the trailing 12-month yield was 0.5% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested would cost about $60 in the first year and $738 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.