PHO vs. FIW

Last updated Jul 14, 2026

PHO (Invesco Water Resources ETF) and FIW (First Trust Water ETF) are both Water Equities funds - PHO tracks the NASDAQ OMX US Water Index while FIW tracks the ISE Clean Edge Water Index. Both are passively managed. Over the past 10 years, PHO returned 11.55%/yr vs 12.18%/yr for FIW. Their correlation of 0.94 suggests significant overlap in exposure. PHO charges 0.59%/yr vs 0.50%/yr for FIW.

Performance

PHO vs. FIW - Performance Comparison

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

Returns By Period

In the year-to-date period, PHO achieves a -1.81% return, which is significantly lower than FIW's -0.70% return. Over the past 10 years, PHO has underperformed FIW with an annualized return of 11.55%, while FIW has yielded a comparatively higher 12.18% annualized return.

PHO

• 1D: -0.21%
• 1M: 3.32%
• 6M: -5.27%
• YTD: -1.81%
• 1Y: -2.44%
• 3Y*: 7.17%
• 5Y*: 5.33%
• 10Y*: 11.55%

FIW

• 1D: -0.41%
• 1M: 2.07%
• 6M: -5.26%
• YTD: -0.70%
• 1Y: -1.44%
• 3Y*: 7.15%
• 5Y*: 5.72%
• 10Y*: 12.18%

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

PHO vs. FIW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHO Invesco Water Resources ETF	-1.81%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%
FIW First Trust Water ETF	-0.70%	7.20%	8.38%	20.35%	-15.70%	32.00%	21.15%	37.37%	-9.23%	24.69%

Correlation

The correlation between PHO and FIW 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 11, 2007	0.94

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

PHO vs. FIW - Sectors Allocation Comparison

Sectors	PHO	FIW
Industrials	53.8%	52.6%
Utilities	14.2%	15.8%
Technology	12.9%	7.9%
Healthcare	10.6%	7.9%
Basic Materials	8.6%	5.3%
Financial Services	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	2.6%
Consumer Defensive	-	2.6%
Energy	-	-
Real Estate	-	-

Return for Risk

PHO vs. FIW — 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

FIW

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

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. FIW - Risk-Adjusted Trends Comparison

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

	PHO	FIW	Difference
Sharpe ratio: Return per unit of total volatility	-0.16	-0.09	-0.07
Sortino ratio: Return per unit of downside risk	-0.12	-0.02	-0.10
Omega ratio: Gain probability vs. loss probability	0.99	1.00	-0.01
Calmar ratio: Return relative to maximum drawdown	-0.18	-0.11	-0.07
Martin ratio: Return relative to average drawdown	-0.41	-0.25	-0.16

PHO vs. FIW - Sharpe Ratio Comparison

The current PHO Sharpe Ratio is -0.16, which is lower than the FIW Sharpe Ratio of -0.09. The chart below compares the historical Sharpe Ratios of PHO and FIW, 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

PHO vs. FIW - Drawdown Comparison

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

Drawdown Indicators

	PHO	FIW	Difference
Max Drawdown Largest peak-to-trough decline	-55.62%	-52.75%	-2.87%
Max Drawdown (1Y) Largest decline over 1 year	-13.78%	-13.81%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-18.32%	-0.87%
Max Drawdown (5Y) Largest decline over 5 years	-28.60%	-28.53%	-0.07%
Max Drawdown (10Y) Largest decline over 10 years	-34.92%	-36.60%	+1.68%
Current Drawdown Current decline from peak	-7.23%	-6.87%	-0.36%
Average Drawdown Average peak-to-trough decline	-10.17%	-8.29%	-1.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	5.86%	+0.15%

Volatility

PHO vs. FIW - Volatility Comparison

The current volatility for Invesco Water Resources ETF (PHO) is 4.61%, while First Trust Water ETF (FIW) has a volatility of 5.00%. This indicates that PHO experiences smaller price fluctuations and is considered to be less risky than FIW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHO	FIW	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.61%	5.00%	-0.39%
Volatility (6M) Calculated over the trailing 6-month period	11.56%	12.22%	-0.66%
Volatility (1Y) Calculated over the trailing 1-year period	15.43%	16.05%	-0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.43%	18.44%	-0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.45%	19.88%	-0.43%

PHO vs. FIW - Expense Ratio Comparison

PHO has a 0.59% expense ratio, which is higher than FIW's 0.50% expense ratio.

Dividends

PHO vs. FIW - Dividend Comparison

PHO's dividend yield for the trailing twelve months is around 0.59%, less than FIW's 0.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIW First Trust Water ETF	0.72%	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	0.59%	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 FIW in my portfolio?

With a correlation of 0.97, PHO and FIW 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, PHO or FIW?

FIW has higher volatility (5.00%) compared to PHO (4.61%). In terms of maximum drawdown, PHO dropped -55.62% vs FIW's -52.75%.

Which ETF is better, PHO or FIW?

On 10-year performance, FIW leads with 12.18% vs 11.55% for PHO. On fees, FIW is cheaper at 0.50% per year. On volatility, PHO has been the lower-risk option at 4.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHO or FIW?

Over the 10-year period, FIW has performed better with a 12.18% return vs 11.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHO or FIW?

FIW is cheaper with a 0.50% expense ratio, compared with 0.59% for PHO.

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

FIW has the higher dividend yield at 0.72%, compared with 0.59% for PHO.

What is the main difference between PHO and FIW?

PHO tracks NASDAQ OMX US Water Index, while FIW tracks ISE Clean Edge Water Index. They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.59% for PHO and 0.50% for FIW.

Which has better risk-adjusted returns?

FIW currently has the higher Sharpe Ratio (-0.09 vs -0.16), 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.