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PHO - ETF AI Analysis

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PHO

Invesco Water Resources ETF (PHO)

Rating:72Outperform
Price Target:
PHO, the Invesco Water Resources ETF, earns a solid overall rating thanks to several high-quality water-focused companies with strong financial performance and positive growth outlooks. Standout holdings like Xylem, Mueller Industries, IDEX, and Pentair support the fund’s quality through robust earnings, strategic initiatives, and generally bullish trends, while some positions such as Ferguson and Ecolab are held back by weaker technical signals and valuation concerns. The main risk is that many top holdings show signs of potential overvaluation or overbought conditions, which could increase volatility if market sentiment shifts.
Positive Factors
Focused Exposure to Water Theme
The ETF targets companies tied to water infrastructure, treatment, and technology, giving investors a direct way to invest in this long-term theme.
Sector Diversification Within Industrials and Utilities
Holdings are spread across industrials, utilities, technology, health care, and materials, which helps reduce the impact if one sector struggles.
Several Strong-Performing Core Holdings
Key positions like Ferguson, Mueller Industries, and IDEX have shown strong recent performance, helping support the fund despite some weaker names.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are eaten up by fees over time.
Concentration in a Few Stocks
The top five holdings make up a large share of the portfolio, so poor performance from any one of them could significantly hurt overall returns.
Mixed Recent Performance and Weakness in Some Top Holdings
The ETF’s year-to-date return is slightly negative and several major holdings like Waters, Roper Technologies, Xylem, and Veralto have been weak, which has weighed on overall results.

PHO vs. SPDR S&P 500 ETF (SPY)

PHO Summary

The Invesco Water Resources ETF (PHO) tracks the NASDAQ OMX US Water index and focuses on companies involved in water supply, treatment, and infrastructure. It mainly holds U.S. industrial and utility businesses that help deliver clean water, fix pipes, and improve water systems. Well-known holdings include Ecolab and American Water. Someone might invest in PHO to tap into long-term growth driven by rising global demand for clean water and to add a specialized theme to a diversified portfolio. A key risk is that it’s concentrated in the water sector, so it can rise or fall more than the broader market.
How much will it cost me?The Invesco Water Resources ETF (PHO) has an expense ratio of 0.59%, which means you’ll pay $5.90 per year for every $1,000 invested. This is higher than the average for passively managed ETFs because it focuses on a specialized niche—the water sector—which requires more research and management to track companies in this unique area.
What would affect this ETF?The Invesco Water Resources ETF (PHO) could benefit from increasing global focus on water conservation and infrastructure modernization, driven by growing concerns about water scarcity and environmental sustainability. However, potential challenges include regulatory changes, economic downturns that may reduce infrastructure spending, and rising interest rates, which could negatively impact the industrial and utility sectors that make up a significant portion of the ETF's holdings.

PHO Top 10 Holdings

PHO is very much a U.S.-centric bet on the nuts and bolts of water infrastructure, with industrial names in the driver’s seat. Ferguson, Mueller Industries, and IDEX have been rising, giving the fund a solid boost as demand for plumbing, flow control, and related equipment stays healthy. On the other side, Waters, Xylem, and Veralto have been lagging lately, acting like a bit of an anchor despite decent business fundamentals. Utilities like American Water are more of a steady ballast, helping smooth out the bumps in this water-focused ride.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Ferguson PLC8.48%$174.43M£37.89B53.97%
65
Neutral
Roper Technologies8.44%$173.48M$36.18B-36.14%
71
Outperform
Waters7.86%$161.59M$30.42B-11.80%
70
Outperform
Ecolab7.27%$149.55M$76.11B12.07%
66
Neutral
American Water7.08%$145.51M$25.86B-8.53%
73
Outperform
Mueller Industries4.36%$89.68M$15.04B87.40%
78
Outperform
IDEX4.14%$85.22M$15.19B19.12%
75
Outperform
Xylem3.99%$82.05M$29.25B6.55%
79
Outperform
Pentair3.89%$80.07M$14.83B2.53%
75
Outperform
Core & Main3.89%$79.99M$9.64B-4.79%
71
Outperform

PHO Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
68.90
Negative
100DMA
70.61
Negative
200DMA
71.21
Negative
Market Momentum
MACD
-0.15
Positive
RSI
40.57
Neutral
STOCH
17.95
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PHO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 69.14, equal to the 50-day MA of 68.90, and equal to the 200-day MA of 71.21, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHO.

PHO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.07B0.59%
72
Outperform
$8.06B0.57%
75
Outperform
$5.17B0.49%
72
Outperform
$4.04B0.30%
68
Neutral
$3.67B0.65%
69
Neutral
$1.86B0.51%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHO
Invesco Water Resources ETF
67.45
2.26
3.47%
THRO
Ishares U.S. Thematic Rotation Active Etf
FDN
First Trust Dow Jones Internet Index Fund
IFRA
iShares U.S. Infrastructure ETF
JTEK
JPMorgan U.S. Tech Leaders ETF
FIW
First Trust Water ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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