FAN vs. PHO

Last updated Jun 24, 2026

FAN (First Trust Global Wind Energy ETF) and PHO (Invesco Water Resources ETF) are both exchange-traded funds - FAN is a Alternative Energy Equities fund tracking the ISE Clean Edge Global Wind Energy Index, while PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index. Both are passively managed. Over the past 10 years, FAN returned 9.88%/yr vs 11.78%/yr for PHO. A 0.63 correlation means they provide meaningful diversification when combined. FAN charges 0.62%/yr vs 0.59%/yr for PHO.

Performance

FAN vs. PHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Global Wind Energy ETF (FAN) and Invesco Water Resources ETF (PHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAN achieves a 20.47% return, which is significantly higher than PHO's -5.09% return. Over the past 10 years, FAN has underperformed PHO with an annualized return of 9.88%, while PHO has yielded a comparatively higher 11.78% annualized return.

FAN

• 1D: -2.65%
• 1M: -5.81%
• YTD: 20.47%
• 6M: 20.15%
• 1Y: 38.86%
• 3Y*: 14.67%
• 5Y*: 4.21%
• 10Y*: 9.88%

PHO

• 1D: -0.30%
• 1M: 2.01%
• YTD: -5.09%
• 6M: -6.73%
• 1Y: -3.23%
• 3Y*: 7.30%
• 5Y*: 5.25%
• 10Y*: 11.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FAN vs. PHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAN First Trust Global Wind Energy ETF	20.47%	40.38%	-8.96%	-3.20%	-13.12%	-11.63%	61.16%	31.22%	-11.40%	16.30%
PHO Invesco Water Resources ETF	-5.09%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%

Correlation

The correlation between FAN and PHO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jun 27, 2008	0.63

Over the past year, the correlation between FAN and PHO has dropped to 0.37 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

FAN vs. PHO - Sectors Allocation Comparison

Sectors	FAN	PHO
Utilities	55.7%	13.8%
Industrials	41.3%	55.1%
Consumer Cyclical	1.7%	-
Energy	1.1%	-
Basic Materials	0.3%	8.5%
Communication Services	-	-
Consumer Defensive	-	-
Financial Services	-	0.0%
Healthcare	-	9.6%
Real Estate	-	-
Technology	-	12.8%

Return for Risk

FAN vs. PHO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FAN

FAN Risk / Return Rank: 63
FAN Sharpe Ratio Rank: 61
FAN Sortino Ratio Rank: 57
FAN Omega Ratio Rank: 55
FAN Calmar Ratio Rank: 73
FAN Martin Ratio Rank: 67

PHO

PHO Risk / Return Rank: 6
PHO Sharpe Ratio Rank: 7
PHO Sortino Ratio Rank: 6
PHO Omega Ratio Rank: 6
PHO Calmar Ratio Rank: 7
PHO Martin Ratio Rank: 6

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FAN vs. PHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Global Wind Energy ETF (FAN) and Invesco Water Resources ETF (PHO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FAN	PHO	Difference
Sharpe ratio: Return per unit of total volatility	1.91	-0.21	+2.13
Sortino ratio: Return per unit of downside risk	2.57	-0.20	+2.77
Omega ratio: Gain probability vs. loss probability	1.32	0.98	+0.35
Calmar ratio: Return relative to maximum drawdown	3.51	-0.24	+3.74
Martin ratio: Return relative to average drawdown	11.64	-0.56	+12.20

FAN vs. PHO - Sharpe Ratio Comparison

The current FAN Sharpe Ratio is 1.91, which is higher than the PHO Sharpe Ratio of -0.21. The chart below compares the historical Sharpe Ratios of FAN and PHO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FAN vs. PHO - Drawdown Comparison

The maximum FAN drawdown since its inception was -79.94%, which is greater than PHO's maximum drawdown of -55.62%. Use the drawdown chart below to compare losses from any high point for FAN and PHO.

Drawdown Indicators

	FAN	PHO	Difference
Max Drawdown Largest peak-to-trough decline	-79.94%	-55.62%	-24.32%
Max Drawdown (1Y) Largest decline over 1 year	-11.13%	-13.78%	+2.65%
Max Drawdown (3Y) Largest decline over 3 years	-24.46%	-19.19%	-5.27%
Max Drawdown (5Y) Largest decline over 5 years	-38.45%	-28.60%	-9.85%
Max Drawdown (10Y) Largest decline over 10 years	-46.29%	-34.92%	-11.37%
Current Drawdown Current decline from peak	-9.44%	-10.33%	+0.89%
Average Drawdown Average peak-to-trough decline	-45.08%	-10.18%	-34.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.35%	5.79%	-2.44%

Volatility

FAN vs. PHO - Volatility Comparison

First Trust Global Wind Energy ETF (FAN) has a higher volatility of 6.87% compared to Invesco Water Resources ETF (PHO) at 4.40%. This indicates that FAN's price experiences larger fluctuations and is considered to be riskier than PHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAN	PHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.87%	4.40%	+2.47%
Volatility (6M) Calculated over the trailing 6-month period	15.93%	11.31%	+4.62%
Volatility (1Y) Calculated over the trailing 1-year period	20.41%	15.17%	+5.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.42%	18.39%	+3.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.96%	19.45%	+1.51%

FAN vs. PHO - Expense Ratio Comparison

FAN has a 0.62% expense ratio, which is higher than PHO's 0.59% expense ratio.

Dividends

FAN vs. PHO - Dividend Comparison

FAN's dividend yield for the trailing twelve months is around 1.03%, more than PHO's 0.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAN First Trust Global Wind Energy ETF	1.03%	1.35%	1.52%	1.71%	1.50%	1.79%	0.84%	2.42%	2.67%	2.59%	6.04%	2.35%
PHO Invesco Water Resources ETF	0.61%	0.54%	0.45%	0.59%	0.49%	0.20%	0.39%	0.43%	0.46%	0.34%	0.47%	0.75%

Frequently Asked Questions

Can I hold both FAN and PHO in my portfolio?

FAN and PHO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAN or PHO?

FAN has higher volatility (6.87%) compared to PHO (4.40%). In terms of maximum drawdown, FAN dropped -79.94% vs PHO's -55.62%.

Which ETF is better, FAN or PHO?

On 10-year performance, PHO leads with 11.78% vs 9.88% for FAN. On fees, PHO is cheaper at 0.59% per year. On volatility, PHO has been the lower-risk option at 4.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAN or PHO?

Over the 10-year period, PHO has performed better with a 11.78% return vs 9.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAN or PHO?

PHO is cheaper with a 0.59% expense ratio, compared with 0.62% for FAN.

Which ETF pays a higher dividend yield, FAN or PHO?

FAN has the higher dividend yield at 1.03%, compared with 0.61% for PHO.

What is the main difference between FAN and PHO?

FAN is categorized as Alternative Energy Equities, while PHO is Water Equities. FAN tracks ISE Clean Edge Global Wind Energy Index, while PHO tracks NASDAQ OMX US Water Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.62% for FAN and 0.59% for PHO.

Which has better risk-adjusted returns?

FAN currently has the higher Sharpe Ratio (1.91 vs -0.21), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.