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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 holdings with strong financial performance and positive growth outlooks, such as Xylem and IDEX, which benefit from robust earnings, strategic initiatives, and supportive technical trends. Other major positions like Roper Technologies, Waters, and Ecolab also add strength through solid fundamentals, but their bearish or overbought technical signals and concerns about rich valuations, along with similar issues at Ferguson and Core & Main, keep the fund from scoring even higher. The main risk factor is that many of its key holdings show signs of potential overvaluation or mixed momentum, which could increase volatility if market conditions turn.
Positive Factors
Strong Leading Holdings
Several of the largest positions, such as Ferguson, Core & Main, and IDEX, have shown strong year-to-date gains, helping support the fund’s overall performance.
Focused Water Theme with Industry Diversification
The ETF targets the water industry while spreading its investments across industrials, utilities, technology, materials, and health care, which helps reduce reliance on any single sector within the theme.
Solid Asset Base
With a large amount of money invested in the fund, it benefits from good liquidity and appears to have strong investor interest.
Negative Factors
High Expense Ratio
The fund’s fee is relatively high for an ETF, which can slowly eat into long-term returns compared with lower-cost options.
Concentration in Top Positions
A meaningful share of the portfolio is tied up in a small group of companies, so weakness in any of these names could noticeably impact the fund.
Heavy U.S. Exposure
With the vast majority of its holdings in U.S. companies, the ETF is heavily tied to the health of the U.S. market and offers limited geographic diversification.

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 involved in water treatment, pipes, pumps, and related technology, mainly in the United States. Well-known holdings include Ecolab and American Water. Someone might invest in PHO to tap into long-term growth from rising global demand for clean and reliable water, while spreading risk across many water-focused companies. A key risk is that it’s concentrated in one sector, so it can rise or fall sharply with changes in the water and infrastructure industries.
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, with an industrial backbone that really sets the tone. American Water has been a steady engine, helping to smooth out the ride while more cyclical names wobble. Ecolab and Ferguson, both recently lagging, have acted like a headwind just as the fund needs them to pull. Roper Technologies and Waters have also been under pressure, keeping a lid on gains. Overall, the ETF is concentrated in industrial and utility names, making it a focused bet on the business of moving, treating, and managing water.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Roper Technologies8.33%$172.45M$35.32B-38.74%
71
Outperform
Waters8.28%$171.44M$31.16B-1.60%
70
Outperform
Ferguson PLC8.10%$167.70M£37.07B55.93%
65
Neutral
American Water7.43%$153.76M$26.80B-6.07%
73
Outperform
Ecolab7.36%$152.32M$77.18B16.14%
66
Neutral
Xylem4.16%$86.08M$31.30B18.03%
79
Outperform
IDEX3.97%$82.18M$14.92B19.33%
75
Outperform
Core & Main3.94%$81.54M$10.01B5.54%
71
Outperform
Mueller Industries3.84%$79.52M$13.40B63.46%
78
Outperform
Veralto Corporation3.83%$79.28M$22.21B-0.13%
76
Outperform

PHO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
70.07
Negative
100DMA
70.93
Negative
200DMA
71.29
Negative
Market Momentum
MACD
-0.26
Negative
RSI
56.42
Neutral
STOCH
92.21
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PHO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 67.22, equal to the 50-day MA of 70.07, and equal to the 200-day MA of 71.29, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 92.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PHO.

PHO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.07B0.59%
72
Outperform
$7.76B0.57%
75
Outperform
$4.75B0.49%
72
Outperform
$3.84B0.30%
68
Neutral
$3.24B0.65%
69
Neutral
$1.85B0.51%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHO
Invesco Water Resources ETF
69.42
7.09
11.37%
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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