PHO vs. ITA

Last updated Jun 13, 2026

PHO (Invesco Water Resources ETF) and ITA (iShares U.S. Aerospace & Defense ETF) are both exchange-traded funds - PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index, while ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index. Both are passively managed. Over the past 10 years, PHO returned 11.71%/yr vs 15.34%/yr for ITA. A 0.72 correlation means they provide meaningful diversification when combined. PHO charges 0.60%/yr vs 0.38%/yr for ITA.

Performance

PHO vs. ITA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Water Resources ETF (PHO) and iShares U.S. Aerospace & Defense ETF (ITA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PHO achieves a -4.97% return, which is significantly lower than ITA's 8.97% return. Over the past 10 years, PHO has underperformed ITA with an annualized return of 11.71%, while ITA has yielded a comparatively higher 15.34% annualized return.

PHO

• 1D: 0.63%
• 1M: 2.30%
• YTD: -4.97%
• 6M: -6.44%
• 1Y: -1.80%
• 3Y*: 7.13%
• 5Y*: 5.17%
• 10Y*: 11.71%

ITA

• 1D: -0.95%
• 1M: 4.16%
• YTD: 8.97%
• 6M: 11.71%
• 1Y: 30.42%
• 3Y*: 27.30%
• 5Y*: 16.86%
• 10Y*: 15.34%

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

PHO vs. ITA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHO Invesco Water Resources ETF	-4.97%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%
ITA iShares U.S. Aerospace & Defense ETF	8.97%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%

Correlation

The correlation between PHO and ITA is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.72

Over the past year, the correlation between PHO and ITA has dropped to 0.46 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

PHO vs. ITA - Sectors Allocation Comparison

Sectors	PHO	ITA
Industrials	56.3%	99.8%
Utilities	14.1%	-
Technology	13.1%	0.1%
Basic Materials	8.4%	-
Healthcare	8.2%	-
Financial Services	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

PHO vs. ITA — 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: 7
PHO Sortino Ratio Rank: 7
PHO Omega Ratio Rank: 7
PHO Calmar Ratio Rank: 7
PHO Martin Ratio Rank: 7

ITA

ITA Risk / Return Rank: 44
ITA Sharpe Ratio Rank: 47
ITA Sortino Ratio Rank: 48
ITA Omega Ratio Rank: 43
ITA Calmar Ratio Rank: 45
ITA Martin Ratio Rank: 38

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. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) and iShares U.S. Aerospace & Defense ETF (ITA). 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	ITA	Difference
Sharpe ratio: Return per unit of total volatility	-0.21	1.43	-1.65
Sortino ratio: Return per unit of downside risk	-0.20	2.11	-2.30
Omega ratio: Gain probability vs. loss probability	0.98	1.25	-0.27
Calmar ratio: Return relative to maximum drawdown	-0.23	1.97	-2.20
Martin ratio: Return relative to average drawdown	-0.58	5.20	-5.78

PHO vs. ITA - Sharpe Ratio Comparison

The current PHO Sharpe Ratio is -0.21, which is lower than the ITA Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of PHO and ITA, 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. ITA - Drawdown Comparison

The maximum PHO drawdown since its inception was -55.62%, smaller than the maximum ITA drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for PHO and ITA.

Drawdown Indicators

	PHO	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-55.62%	-59.72%	+4.10%
Max Drawdown (1Y) Largest decline over 1 year	-13.78%	-15.82%	+2.04%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-15.82%	-3.37%
Max Drawdown (5Y) Largest decline over 5 years	-28.60%	-18.72%	-9.88%
Max Drawdown (10Y) Largest decline over 10 years	-34.92%	-51.00%	+16.08%
Current Drawdown Current decline from peak	-10.21%	-6.64%	-3.57%
Average Drawdown Average peak-to-trough decline	-10.18%	-9.45%	-0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.59%	5.97%	-0.38%

Volatility

PHO vs. ITA - Volatility Comparison

The current volatility for Invesco Water Resources ETF (PHO) is 4.41%, while iShares U.S. Aerospace & Defense ETF (ITA) has a volatility of 9.07%. This indicates that PHO experiences smaller price fluctuations and is considered to be less risky than ITA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHO	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.41%	9.07%	-4.66%
Volatility (6M) Calculated over the trailing 6-month period	11.15%	18.47%	-7.32%
Volatility (1Y) Calculated over the trailing 1-year period	15.12%	21.74%	-6.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.40%	20.21%	-1.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.46%	23.22%	-3.76%

PHO vs. ITA - Expense Ratio Comparison

PHO has a 0.60% expense ratio, which is higher than ITA's 0.38% expense ratio.

Dividends

PHO vs. ITA - Dividend Comparison

PHO's dividend yield for the trailing twelve months is around 0.58%, more than ITA's 0.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.46%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
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 ITA in my portfolio?

PHO and ITA have a correlation of 0.46, 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 ITA?

ITA has higher volatility (9.07%) compared to PHO (4.41%). In terms of maximum drawdown, PHO dropped -55.62% vs ITA's -59.72%.

Which ETF is better, PHO or ITA?

On 10-year performance, ITA leads with 15.34% vs 11.71% for PHO. On fees, ITA is cheaper at 0.38% per year. On volatility, PHO has been the lower-risk option at 4.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHO or ITA?

Over the 10-year period, ITA has performed better with a 15.34% return vs 11.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHO or ITA?

ITA is cheaper with a 0.38% expense ratio, compared with 0.60% for PHO.

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

PHO has the higher dividend yield at 0.58%, compared with 0.46% for ITA.

What is the main difference between PHO and ITA?

PHO is categorized as Water Equities, while ITA is Aerospace & Defense. PHO tracks NASDAQ OMX US Water Index, while ITA tracks Dow Jones U.S. Select Aerospace & Defense Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.60% for PHO and 0.38% for ITA.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.43 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.