PHO vs. AQWA

Last updated Jun 3, 2026

PHO (Invesco Water Resources ETF) and AQWA (Global X Clean Water ETF) are both Water Equities funds - PHO tracks the NASDAQ OMX US Water Index while AQWA tracks the Solactive Global Clean Water Industry Index. Both are passively managed. Over the past 5 years, PHO returned 5.26%/yr vs 4.75%/yr for AQWA. Their correlation of 0.90 suggests significant overlap in exposure. PHO charges 0.60%/yr vs 0.50%/yr for AQWA.

Performance

PHO vs. AQWA - Performance Comparison

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

Returns By Period

In the year-to-date period, PHO achieves a -5.69% return, which is significantly lower than AQWA's -0.74% return.

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%

AQWA

• 1D: 0.93%
• 1M: -3.17%
• YTD: -0.74%
• 6M: -2.64%
• 1Y: 3.06%
• 3Y*: 9.08%
• 5Y*: 4.75%
• 10Y*: —

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

PHO vs. AQWA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PHO Invesco Water Resources ETF	-5.69%	7.62%	8.59%	18.85%	-14.86%	19.26%
AQWA Global X Clean Water ETF	-0.74%	13.15%	4.34%	20.13%	-19.89%	15.85%

Correlation

The correlation between PHO and AQWA is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Apr 13, 2021	0.90

The correlation between PHO and AQWA has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

PHO vs. AQWA - Sectors Allocation Comparison

Sectors	PHO	AQWA
Industrials	56.3%	56.9%
Utilities	14.1%	34.8%
Technology	13.1%	2.0%
Basic Materials	8.4%	1.7%
Healthcare	8.2%	-
Financial Services	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	1.7%
Consumer Defensive	-	2.9%
Energy	-	-
Real Estate	-	-

Return for Risk

PHO vs. AQWA — Risk / Return Rank

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

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

AQWA

AQWA Risk / Return Rank: 11
AQWA Sharpe Ratio Rank: 12
AQWA Sortino Ratio Rank: 11
AQWA Omega Ratio Rank: 11
AQWA Calmar Ratio Rank: 11
AQWA Martin Ratio Rank: 11

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.

PHO vs. AQWA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) and Global X Clean Water ETF (AQWA). 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.

	PHO	AQWA	Difference
Sharpe ratio Return per unit of total volatility	-0.08	0.21	-0.30
Sortino ratio Return per unit of downside risk	-0.01	0.40	-0.42
Omega ratio Gain probability vs. loss probability	1.00	1.05	-0.05
Calmar ratio Return relative to maximum drawdown	-0.15	0.20	-0.34
Martin ratio Return relative to average drawdown	-0.38	0.50	-0.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PHO vs. AQWA - Sharpe Ratio Comparison

The current PHO Sharpe Ratio is -0.08, which is lower than the AQWA Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of PHO and AQWA, 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

	PHO	AQWA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.08	0.21	-0.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.29	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.32	+0.02

Drawdowns

PHO vs. AQWA - Drawdown Comparison

The maximum PHO drawdown since its inception was -55.62%, which is greater than AQWA's maximum drawdown of -29.44%. Use the drawdown chart below to compare losses from any high point for PHO and AQWA.

Drawdown Indicators

	PHO	AQWA	Difference
Max Drawdown Largest peak-to-trough decline	-55.62%	-29.44%	-26.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.78%	-12.34%	-1.44%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-14.55%	-4.64%
Max Drawdown (5Y) Largest decline over 5 years	-28.60%	-29.44%	+0.84%
Max Drawdown (10Y) Largest decline over 10 years	-34.92%	—	—
Current Drawdown Current decline from peak	-10.89%	-10.84%	-0.05%
Average Drawdown Average peak-to-trough decline	-10.18%	-8.27%	-1.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.27%	4.85%	+0.42%

Volatility

PHO vs. AQWA - Volatility Comparison

Invesco Water Resources ETF (PHO) and Global X Clean Water ETF (AQWA) have volatilities of 4.11% and 4.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHO	AQWA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.11%	4.08%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	10.92%	10.86%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	14.34%	+0.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	16.76%	+1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.46%	16.66%	+2.80%

PHO vs. AQWA - Expense Ratio Comparison

PHO has a 0.60% expense ratio, which is higher than AQWA's 0.50% expense ratio.

Dividends

PHO vs. AQWA - Dividend Comparison

PHO's dividend yield for the trailing twelve months is around 0.58%, less than AQWA's 1.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AQWA Global X Clean Water ETF	1.48%	1.47%	1.40%	1.53%	1.56%	1.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 PHO and AQWA in my portfolio?

PHO and AQWA have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PHO or AQWA?

PHO has higher volatility (4.11%) compared to AQWA (4.08%). In terms of maximum drawdown, PHO dropped -55.62% vs AQWA's -29.44%.

Which ETF is better, PHO or AQWA?

On 5-year performance, PHO leads with 5.26% vs 4.75% for AQWA. On fees, AQWA is cheaper at 0.50% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHO or AQWA?

Over the 5-year period, PHO has performed better with a 5.26% return vs 4.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHO or AQWA?

AQWA is cheaper with a 0.50% expense ratio, compared with 0.60% for PHO.

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

AQWA has the higher dividend yield at 1.48%, compared with 0.58% for PHO.

What is the main difference between PHO and AQWA?

PHO tracks NASDAQ OMX US Water Index, while AQWA tracks Solactive Global Clean Water Industry Index. They also come from different issuers: Invesco and Global X. Their fees differ too: 0.60% for PHO and 0.50% for AQWA.

Which has better risk-adjusted returns?

AQWA currently has the higher Sharpe Ratio (0.21 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.