PHO vs. UNG
PHO (Invesco Water Resources ETF) and UNG (United States Natural Gas Fund LP) are both exchange-traded funds - PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index, while UNG is a Oil & Gas fund tracking the Front Month Natural Gas Futures. Both are passively managed. Over the past 10 years, PHO returned 11.85%/yr vs -22.65%/yr for UNG. Their 0.05 correlation means their historical movements had little consistent relationship. PHO charges 0.59%/yr vs 1.17%/yr for UNG.
Performance
PHO vs. UNG - Performance Comparison
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Returns By Period
In the year-to-date period, PHO achieves a 1.45% return, which is significantly higher than UNG's -17.54% return. Over the past 10 years, PHO has outperformed UNG with an annualized return of 11.85%, while UNG has yielded a comparatively lower -22.65% annualized return.
PHO
- 1D
- 1.45%
- 1M
- 2.18%
- 6M
- -2.41%
- YTD
- 1.45%
- 1Y
- 2.26%
- 3Y*
- 8.13%
- 5Y*
- 4.94%
- 10Y*
- 11.85%
- ALL TIME*
- 8.36%
UNG
- 1D
- 0.50%
- 1M
- -12.69%
- 6M
- -20.39%
- YTD
- -17.54%
- 1Y
- -25.77%
- 3Y*
- -28.62%
- 5Y*
- -29.56%
- 10Y*
- -22.65%
- ALL TIME*
- -28.45%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.89M | $5.82M | $8.69M | |
| $81.89M | $81.97M | $83.57M |
PHO vs. UNG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PHO Invesco Water Resources ETF | 1.45% | 7.62% | 8.59% | 18.85% | -14.86% | 31.28% | 20.83% | 37.57% | -6.40% | 23.55% |
UNG United States Natural Gas Fund LP | -17.54% | -27.07% | -17.11% | -64.04% | 12.89% | 35.76% | -45.43% | -31.77% | 5.96% | -37.58% |
Correlation
The correlation between PHO and UNG is -0.21, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.21 |
Correlation (3Y) Balances recent behavior with more history. | -0.06 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.03 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.02 |
Correlation (All Time) Calculated using the full available price history since Apr 18, 2007 | 0.05 |
The correlation between PHO and UNG shifts across timeframes, from -0.21 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
PHO vs. UNG — Risk / Return Rank
PHO
UNG
PHO vs. UNG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) and United States Natural Gas Fund LP (UNG). 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 | UNG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.58 | ||
| Sortino ratioReturn per unit of downside risk | +0.60 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 0.96 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.16 | -0.62 | +0.78 |
| Martin ratioReturn relative to average drawdown | 0.36 | -1.02 | +1.38 |
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Drawdowns
PHO vs. UNG - Drawdown Comparison
The maximum PHO drawdown since its inception was -55.62%, smaller than the maximum UNG drawdown of -99.88%. Use the drawdown chart below to compare losses from any high point for PHO and UNG.
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Drawdown Indicators
| PHO | UNG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.62% | -99.88% | +44.26% |
Max Drawdown (1Y)Largest decline over 1 year | -13.78% | -42.01% | +28.23% |
Max Drawdown (3Y)Largest decline over 3 years | -19.19% | -69.26% | +50.07% |
Max Drawdown (5Y)Largest decline over 5 years | -28.60% | -92.75% | +64.15% |
Max Drawdown (10Y)Largest decline over 10 years | -34.92% | -93.77% | +58.85% |
Current DrawdownCurrent decline from peak | -4.15% | -99.88% | +95.73% |
Average DrawdownAverage peak-to-trough decline | -10.16% | -90.03% | +79.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.25% | 25.26% | -19.01% |
Volatility
PHO vs. UNG - Volatility Comparison
The current volatility for Invesco Water Resources ETF (PHO) is 5.95%, while United States Natural Gas Fund LP (UNG) has a volatility of 10.03%. This indicates that PHO experiences smaller price fluctuations and is considered to be less risky than UNG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PHO | UNG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.95% | 10.03% | -4.08% |
Volatility (6M)Calculated over the trailing 6-month period | 12.11% | 40.36% | -28.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.16% | 59.10% | -42.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.52% | 64.16% | -45.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.51% | 54.70% | -35.19% |
PHO vs. UNG - Expense Ratio Comparison
PHO has a 0.59% expense ratio, which is lower than UNG's 1.17% expense ratio.
Dividends
PHO vs. UNG - Dividend Comparison
PHO's dividend yield for the trailing twelve months is around 0.57%, while UNG has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PHO Invesco Water Resources ETF | 0.57% | 0.54% | 0.45% | 0.59% | 0.49% | 0.20% | 0.39% | 0.43% | 0.46% | 0.34% | 0.47% | 0.75% |
UNG United States Natural Gas Fund LP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PHO and UNG have a correlation of -0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
UNG has higher volatility (10.03%) compared to PHO (5.95%). In terms of maximum drawdown, PHO dropped -55.62% vs UNG's -99.88%.
On 10-year performance, PHO leads with 11.85% vs -22.65% for UNG. On fees, PHO is cheaper at 0.59% per year. On volatility, PHO has been the lower-risk option at 5.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PHO has performed better with a 11.85% return vs -22.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PHO is cheaper with a 0.59% expense ratio, compared with 1.17% for UNG.
PHO has the higher dividend yield at 0.57%, compared with 0.00% for UNG.
PHO is categorized as Water Equities, while UNG is Oil & Gas. PHO tracks NASDAQ OMX US Water Index, while UNG tracks Front Month Natural Gas Futures. They also come from different issuers: Invesco and USCF. Their fees differ too: 0.59% for PHO and 1.17% for UNG.
PHO currently has the higher Sharpe Ratio (0.14 vs -0.44), 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.
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