FIW vs. PHO

Last updated Jun 3, 2026

FIW (First Trust Water ETF) and PHO (Invesco Water Resources ETF) are both Water Equities funds - FIW tracks the ISE Clean Edge Water Index while PHO tracks the NASDAQ OMX US Water Index. Both are passively managed. Over the past 10 years, FIW returned 12.14%/yr vs 11.51%/yr for PHO. Their correlation of 0.94 suggests significant overlap in exposure. FIW charges 0.54%/yr vs 0.60%/yr for PHO.

Performance

FIW vs. PHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Water ETF (FIW) 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, FIW achieves a -4.05% return, which is significantly higher than PHO's -5.69% return. Over the past 10 years, FIW has outperformed PHO with an annualized return of 12.14%, while PHO has yielded a comparatively lower 11.51% annualized return.

FIW

• 1D: 0.45%
• 1M: -2.15%
• YTD: -4.05%
• 6M: -6.21%
• 1Y: 0.08%
• 3Y*: 7.74%
• 5Y*: 5.43%
• 10Y*: 12.14%

PHO

• 1D: 0.73%
• 1M: -2.71%
• YTD: -5.69%
• 6M: -7.76%
• 1Y: -1.24%
• 3Y*: 7.60%
• 5Y*: 5.26%
• 10Y*: 11.51%

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

FIW vs. PHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FIW First Trust Water ETF	-4.05%	7.20%	8.38%	20.35%	-15.70%	32.00%	21.15%	37.37%	-9.23%	24.69%
PHO Invesco Water Resources ETF	-5.69%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%

Correlation

The correlation between FIW and PHO is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since May 14, 2007	0.94

The correlation between FIW and PHO has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

FIW vs. PHO - Sectors Allocation Comparison

Sectors	FIW	PHO
Industrials	54.1%	56.3%
Utilities	16.2%	14.1%
Healthcare	8.1%	8.2%
Technology	8.1%	13.1%
Basic Materials	5.4%	8.4%
Consumer Cyclical	2.7%	-
Consumer Defensive	2.7%	-
Communication Services	-	-
Energy	-	-
Financial Services	-	0.0%
Real Estate	-	-

Return for Risk

FIW vs. PHO — Risk / Return Rank

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

FIW

FIW Risk / Return Rank: 8
FIW Sharpe Ratio Rank: 9
FIW Sortino Ratio Rank: 8
FIW Omega Ratio Rank: 8
FIW Calmar Ratio Rank: 8
FIW Martin Ratio Rank: 8

PHO

PHO Risk / Return Rank: 7
PHO Sharpe Ratio Rank: 8
PHO Sortino Ratio Rank: 7
PHO Omega Ratio Rank: 7
PHO Calmar Ratio Rank: 7
PHO Martin Ratio Rank: 7

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.

FIW vs. PHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Water ETF (FIW) 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.

	FIW	PHO	Difference
Sharpe ratio Return per unit of total volatility	0.01	-0.08	+0.09
Sortino ratio Return per unit of downside risk	0.12	-0.01	+0.13
Omega ratio Gain probability vs. loss probability	1.01	1.00	+0.01
Calmar ratio Return relative to maximum drawdown	-0.06	-0.15	+0.09
Martin ratio Return relative to average drawdown	-0.15	-0.38	+0.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FIW vs. PHO - Sharpe Ratio Comparison

The current FIW Sharpe Ratio is 0.01, which is higher than the PHO Sharpe Ratio of -0.08. The chart below compares the historical Sharpe Ratios of FIW 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.

Sharpe Ratios by Period

	FIW	PHO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.01	-0.08	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.29	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.59	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.34	+0.09

Drawdowns

FIW vs. PHO - Drawdown Comparison

The maximum FIW drawdown since its inception was -52.75%, smaller than the maximum PHO drawdown of -55.62%. Use the drawdown chart below to compare losses from any high point for FIW and PHO.

Drawdown Indicators

	FIW	PHO	Difference
Max Drawdown Largest peak-to-trough decline	-52.75%	-55.62%	+2.87%
Max Drawdown (1Y) Largest decline over 1 year	-13.81%	-13.78%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-18.32%	-19.19%	+0.87%
Max Drawdown (5Y) Largest decline over 5 years	-28.53%	-28.60%	+0.07%
Max Drawdown (10Y) Largest decline over 10 years	-36.60%	-34.92%	-1.68%
Current Drawdown Current decline from peak	-10.01%	-10.89%	+0.88%
Average Drawdown Average peak-to-trough decline	-8.30%	-10.18%	+1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.29%	5.27%	+0.02%

Volatility

FIW vs. PHO - Volatility Comparison

First Trust Water ETF (FIW) has a higher volatility of 4.55% compared to Invesco Water Resources ETF (PHO) at 4.11%. This indicates that FIW'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

	FIW	PHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.55%	4.11%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	11.44%	10.92%	+0.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.53%	15.05%	+0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	18.35%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.90%	19.46%	+0.44%

FIW vs. PHO - Expense Ratio Comparison

FIW has a 0.54% expense ratio, which is lower than PHO's 0.60% expense ratio.

Dividends

FIW vs. PHO - Dividend Comparison

FIW's dividend yield for the trailing twelve months is around 0.79%, more than PHO's 0.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIW First Trust Water ETF	0.79%	0.69%	0.69%	0.68%	0.67%	0.37%	0.56%	0.55%	0.73%	1.13%	0.51%	0.76%
PHO Invesco Water Resources ETF	0.58%	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 FIW and PHO in my portfolio?

With a correlation of 0.97, FIW and PHO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FIW or PHO?

FIW has higher volatility (4.55%) compared to PHO (4.11%). In terms of maximum drawdown, FIW dropped -52.75% vs PHO's -55.62%.

Which ETF is better, FIW or PHO?

On 10-year performance, FIW leads with 12.14% vs 11.51% for PHO. On fees, FIW is cheaper at 0.54% per year. On volatility, PHO has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FIW or PHO?

Over the 10-year period, FIW has performed better with a 12.14% return vs 11.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FIW or PHO?

FIW is cheaper with a 0.54% expense ratio, compared with 0.60% for PHO.

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

FIW has the higher dividend yield at 0.79%, compared with 0.58% for PHO.

What is the main difference between FIW and PHO?

FIW tracks ISE Clean Edge Water Index, while PHO tracks NASDAQ OMX US Water Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.54% for FIW and 0.60% for PHO.

Which has better risk-adjusted returns?

FIW currently has the higher Sharpe Ratio (0.01 vs -0.08), 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.