PHO vs. VOO

Last updated Jun 3, 2026

PHO (Invesco Water Resources ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, PHO returned 11.51%/yr vs 15.65%/yr for VOO. Their correlation of 0.81 suggests significant overlap in exposure. PHO charges 0.60%/yr vs 0.03%/yr for VOO.

Performance

PHO vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Water Resources ETF (PHO) and Vanguard S&P 500 ETF (VOO). 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 VOO's 11.69% return. Over the past 10 years, PHO has underperformed VOO with an annualized return of 11.51%, while VOO has yielded a comparatively higher 15.65% annualized 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%

VOO

• 1D: 0.14%
• 1M: 5.39%
• YTD: 11.69%
• 6M: 12.11%
• 1Y: 29.68%
• 3Y*: 22.73%
• 5Y*: 14.26%
• 10Y*: 15.65%

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

PHO vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VOO Vanguard S&P 500 ETF	11.69%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between PHO and VOO is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	0.81

Over the past year, the correlation between PHO and VOO has dropped to 0.58 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

PHO vs. VOO - Sectors Allocation Comparison

Sectors	PHO	VOO
Industrials	56.3%	8.3%
Utilities	14.1%	2.4%
Technology	13.1%	35.7%
Basic Materials	8.4%	1.8%
Healthcare	8.2%	8.5%
Financial Services	0.0%	11.6%
Communication Services	-	11.3%
Consumer Cyclical	-	10.2%
Consumer Defensive	-	4.9%
Energy	-	3.5%
Real Estate	-	1.9%

Return for Risk

PHO vs. VOO — 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

VOO

VOO Risk / Return Rank: 75
VOO Sharpe Ratio Rank: 77
VOO Sortino Ratio Rank: 75
VOO Omega Ratio Rank: 76
VOO Calmar Ratio Rank: 68
VOO Martin Ratio Rank: 80

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. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio Return per unit of total volatility	-0.08	2.53	-2.61
Sortino ratio Return per unit of downside risk	-0.01	3.43	-3.44
Omega ratio Gain probability vs. loss probability	1.00	1.46	-0.46
Calmar ratio Return relative to maximum drawdown	-0.15	3.42	-3.57
Martin ratio Return relative to average drawdown	-0.38	15.95	-16.33
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. VOO - Sharpe Ratio Comparison

The current PHO Sharpe Ratio is -0.08, which is lower than the VOO Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of PHO and VOO, 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	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.08	2.53	-2.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.85	-0.56
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.87	-0.28
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.89	-0.55

Drawdowns

PHO vs. VOO - Drawdown Comparison

The maximum PHO drawdown since its inception was -55.62%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for PHO and VOO.

Drawdown Indicators

	PHO	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-55.62%	-33.99%	-21.63%
Max Drawdown (1Y) Largest decline over 1 year	-13.78%	-8.90%	-4.88%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-18.69%	-0.50%
Max Drawdown (5Y) Largest decline over 5 years	-28.60%	-24.52%	-4.08%
Max Drawdown (10Y) Largest decline over 10 years	-34.92%	-33.99%	-0.93%
Current Drawdown Current decline from peak	-10.89%	0.00%	-10.89%
Average Drawdown Average peak-to-trough decline	-10.18%	-3.69%	-6.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.27%	1.91%	+3.36%

Volatility

PHO vs. VOO - Volatility Comparison

Invesco Water Resources ETF (PHO) has a higher volatility of 4.11% compared to Vanguard S&P 500 ETF (VOO) at 2.74%. This indicates that PHO's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHO	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.11%	2.74%	+1.37%
Volatility (6M) Calculated over the trailing 6-month period	10.92%	8.88%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	11.78%	+3.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	16.81%	+1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.46%	18.01%	+1.45%

PHO vs. VOO - Expense Ratio Comparison

PHO has a 0.60% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

PHO vs. VOO - Dividend Comparison

PHO's dividend yield for the trailing twelve months is around 0.58%, less than VOO's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VOO Vanguard S&P 500 ETF	1.02%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both PHO and VOO in my portfolio?

PHO and VOO have a correlation of 0.58, 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 VOO?

PHO has higher volatility (4.11%) compared to VOO (2.74%). In terms of maximum drawdown, PHO dropped -55.62% vs VOO's -33.99%.

Which ETF is better, PHO or VOO?

On 10-year performance, VOO leads with 15.65% vs 11.51% for PHO. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 2.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHO or VOO?

Over the 10-year period, VOO has performed better with a 15.65% return vs 11.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHO or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.60% for PHO.

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

VOO has the higher dividend yield at 1.02%, compared with 0.58% for PHO.

What is the main difference between PHO and VOO?

PHO is categorized as Water Equities, while VOO is S&P 500. PHO tracks NASDAQ OMX US Water Index, while VOO tracks S&P 500 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.60% for PHO and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.53 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.