Invesco Global Water ETF

Invesco Global Water ETF (PIO) tracks the Nasdaq OMX Global Water Index. The index holds about three dozen companies around the world that make products to conserve and purify water, such as Roper Technologies, Ecolab and the Brazilian utility SABESP. About 58% of its assets sit outside the United States. It is also the most expensive of eight similar water funds compared, at 0.75% a year against a peer average of 0.52%.

• Over the year to Oct 27, 2026, PIO returned -3.9%, 6th of 8 among similar funds.
• Its 5-year annualized return was +2.1% and its 10-year +8.8%.
• In the 2020 COVID crash it fell 35.8% and regained its old high 5.4 months after the low.
• Its worst full calendar year was 2008 (-45.7%); its best was 2009 (+39.1%).
• The deepest fall in its price history was 64.9% (Oct 31, 2007 to Mar 9, 2009), recovered by Jun 6, 2014.

As of Jul 31, 2026, the fund held 40 securities; the ten largest made up 57.62% of assets. It also reported 5.37% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.06%, +2.76%, -0.58%.

PIO is an index fund. It does not try to beat its benchmark, the Nasdaq OMX Global Water Index. Nasdaq, Inc. builds and maintains that index from exchange-listed companies in the United States and in developed and emerging markets. To qualify, a company must make products designed to conserve and purify water for homes, businesses and industries. As of December 31, 2025, the index held 36 stocks, ranging in size from $355.5 million to $74.4 billion in market value.

The fund uses "full replication." That means it generally owns every stock in the index, in the same proportions as the index. It puts at least 90% of its assets into those stocks or into depositary receipts based on them. Depositary receipts (ADRs and GDRs) are certificates that trade like shares and represent stock in a foreign company. Because the fund is passive, it keeps a lagging stock until the index drops it. Portfolio turnover was 45%.

The fund is "non-diversified," so it can put more money into a few companies. As of July 31, 2026, its ten largest holdings made up 57.6% of assets. The top three were Roper Technologies at 9.4%, Ecolab at 8.5% and Pentair at 7.2%. US stocks were 42.3% of the fund, followed by Japan at 11.1% and Brazil at 10.3%. The fund held no derivatives and uses no leverage.

• PIO charges 0.75% a year, versus an average of 0.52% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $930 over 10 years (assuming a 5% annual return).

PIO is a narrow, non-diversified bet on one theme, and it has suffered deep, slow-to-recover losses, so it fits better as a small add-on than as a foundation.

PIO adds global water companies, from equipment makers to Brazilian utilities, but it has fallen hard in downturns. It lost 64.9% from October 2007 to March 2009, and 2008 was its worst calendar year at -45.7%. It took until June 2014, about 63 months, to recover. It fell 35.8% in the 2020 COVID crash and recovered in about 5 months. It fell 33.6% in 2022 and took about 17 months to get back. Anyone forced to sell during drops like these would lock in losses. Income is small: the yield was 0.89% as of October 27, 2026, paid twice a year. The fund costs 0.75% a year. In the SEC's standard example, that comes to $77 in the first year on $10,000. 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.