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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 core holdings like Idexx Laboratories, Xylem, Veralto, and IDEX, which show strong financial performance, positive earnings sentiment, and supportive technical trends that underpin the fund’s growth potential. Some larger positions such as Roper Technologies, Ecolab, Ferguson, Waters, and Agilent add stability but are held back by signs of bearish or mixed momentum and concerns about high valuations, which slightly dampen the ETF’s overall appeal. The main risk factor is the fund’s concentration in specialized water-related and industrial companies, where elevated valuations and sector-specific challenges could increase volatility if market conditions turn less favorable.
Positive Factors
Targeted Water Theme
The fund focuses on companies tied to water resources and related technologies, giving investors specialized exposure to a long-term infrastructure and environmental theme.
Sector Diversification Within Industrials and Health Care
Holdings are spread across several sectors such as industrials, health care, technology, materials, and utilities, which helps reduce the impact if one industry faces a downturn.
Healthy Fund Size
With nearly two billion dollars in assets, the ETF is a well-established product that is likely to have good trading liquidity for everyday investors.
Negative Factors
High Expense Ratio
The fund’s fees are relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Weak Recent Performance
The ETF has delivered negative results so far this year and over the last few months, indicating recent performance has been soft.
Concentration in U.S. Industrials and a Few Large Holdings
Almost all assets are in U.S. stocks, heavily tilted toward industrial companies, and a small group of top positions makes up a large share of the portfolio, increasing sensitivity to this niche segment and those specific names.

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

PHO Summary

The Invesco Water Resources ETF (PHO) is a fund that follows the NASDAQ OMX US Water index and focuses on companies tied to the water industry. It holds businesses that help treat, test, move, and manage water, such as Ecolab and American Water. This ETF may appeal to investors who want growth from long-term trends like rising demand for clean water, while also adding a specialized theme to their portfolio. A key risk is that it is heavily focused on water-related companies, so its value can swing more than a broad market fund if this sector falls out of favor.
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 a pure play on U.S. water infrastructure and technology, with industrial names like Roper Technologies and Ferguson setting the tone. Roper has been rising recently, helping to pull the fund forward, while Ecolab’s more mixed, slightly lagging action has taken a bit of shine off the top. Waters and Agilent have been steady to rising, adding a quiet tailwind, but Idexx Laboratories is losing steam and weighing on returns. Overall, the ETF is tightly focused on water-related industrials and health care tools, with little geographic diversification beyond the U.S.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Roper Technologies8.94%$187.41M$39.56B-24.72%
71
Outperform
Ecolab8.06%$168.95M$78.14B4.51%
66
Neutral
Ferguson PLC7.22%$151.18M
65
Neutral
Waters6.94%$145.47M$37.05B44.69%
70
Outperform
Idexx Laboratories6.48%$135.85M$44.10B-10.85%
78
Outperform
Veralto Corporation4.33%$90.69M$22.96B-8.69%
76
Outperform
Xylem3.98%$83.30M$27.31B-15.65%
79
Outperform
American Water3.97%$83.24M$26.66B-6.91%
73
Outperform
Agilent3.90%$81.67M$39.08B27.35%
73
Outperform
IDEX3.57%$74.78M$16.99B48.15%
75
Outperform

PHO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
68.45
Positive
100DMA
67.91
Positive
200DMA
69.82
Positive
Market Momentum
MACD
1.24
Negative
RSI
68.26
Neutral
STOCH
90.44
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PHO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 69.94, equal to the 50-day MA of 68.45, and equal to the 200-day MA of 69.82, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 68.26 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHO.

PHO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.08B0.59%
72
Outperform
$6.71B0.57%
74
Outperform
$5.35B0.49%
72
Outperform
$4.59B0.30%
68
Neutral
$4.37B0.65%
70
Neutral
$1.94B0.50%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHO
Invesco Water Resources ETF
73.31
2.29
3.22%
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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