PHO vs. WMS

Last updated Jun 4, 2026

PHO (Invesco Water Resources ETF) is Water Equities fund tracking the NASDAQ OMX US Water Index, while WMS (Advanced Drainage Systems, Inc.) is a stock. Over the past 10 years, PHO returned 11.55%/yr vs 19.83%/yr for WMS. A 0.62 correlation means they provide meaningful diversification when combined.

Performance

PHO vs. WMS - Performance Comparison

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

Returns By Period

In the year-to-date period, PHO achieves a -5.40% return, which is significantly higher than WMS's -8.28% return. Over the past 10 years, PHO has underperformed WMS with an annualized return of 11.55%, while WMS has yielded a comparatively higher 19.83% annualized return.

PHO

• 1D: 0.30%
• 1M: -1.41%
• YTD: -5.40%
• 6M: -7.93%
• 1Y: -3.67%
• 3Y*: 7.71%
• 5Y*: 5.22%
• 10Y*: 11.55%

WMS

• 1D: -2.32%
• 1M: -5.72%
• YTD: -8.28%
• 6M: -12.56%
• 1Y: 20.25%
• 3Y*: 8.79%
• 5Y*: 4.46%
• 10Y*: 19.83%

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

PHO vs. WMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHO Invesco Water Resources ETF	-5.40%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%
WMS Advanced Drainage Systems, Inc.	-8.28%	25.97%	-17.48%	72.44%	-39.53%	63.46%	116.70%	67.74%	2.78%	17.27%

Correlation

The correlation between PHO and WMS is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jul 28, 2014	0.62

The correlation between PHO and WMS shifts across timeframes, from 0.62 (all time) to 0.76 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PHO vs. WMS — Risk / Return Rank

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

PHO

PHO Risk / Return Rank: 6
PHO Sharpe Ratio Rank: 6
PHO Sortino Ratio Rank: 6
PHO Omega Ratio Rank: 6
PHO Calmar Ratio Rank: 6
PHO Martin Ratio Rank: 5

WMS

WMS Risk / Return Rank: 57
WMS Sharpe Ratio Rank: 58
WMS Sortino Ratio Rank: 56
WMS Omega Ratio Rank: 52
WMS Calmar Ratio Rank: 58
WMS Martin Ratio Rank: 59

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. WMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) and Advanced Drainage Systems, Inc. (WMS). 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	WMS	Difference
Sharpe ratio: Return per unit of total volatility	-0.25	0.52	-0.77
Sortino ratio: Return per unit of downside risk	-0.25	1.12	-1.37
Omega ratio: Gain probability vs. loss probability	0.97	1.13	-0.15
Calmar ratio: Return relative to maximum drawdown	-0.27	0.81	-1.08
Martin ratio: Return relative to average drawdown	-0.69	1.99	-2.68
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. WMS - Sharpe Ratio Comparison

The current PHO Sharpe Ratio is -0.25, which is lower than the WMS Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of PHO and WMS, 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	WMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.25	0.52	-0.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.11	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.48	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.50	-0.16

Drawdowns

PHO vs. WMS - Drawdown Comparison

The maximum PHO drawdown since its inception was -55.62%, roughly equal to the maximum WMS drawdown of -53.58%. Use the drawdown chart below to compare losses from any high point for PHO and WMS.

Drawdown Indicators

	PHO	WMS	Difference
Max Drawdown Largest peak-to-trough decline	-55.62%	-53.58%	-2.04%
Max Drawdown (1Y) Largest decline over 1 year	-13.78%	-24.96%	+11.18%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-45.75%	+26.56%
Max Drawdown (5Y) Largest decline over 5 years	-28.60%	-50.12%	+21.52%
Max Drawdown (10Y) Largest decline over 10 years	-34.92%	-53.58%	+18.66%
Current Drawdown Current decline from peak	-10.62%	-25.25%	+14.63%
Average Drawdown Average peak-to-trough decline	-10.18%	-17.89%	+7.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.31%	10.20%	-4.89%

Volatility

PHO vs. WMS - Volatility Comparison

The current volatility for Invesco Water Resources ETF (PHO) is 4.01%, while Advanced Drainage Systems, Inc. (WMS) has a volatility of 10.57%. This indicates that PHO experiences smaller price fluctuations and is considered to be less risky than WMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHO	WMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.01%	10.57%	-6.56%
Volatility (6M) Calculated over the trailing 6-month period	10.92%	25.53%	-14.61%
Volatility (1Y) Calculated over the trailing 1-year period	15.03%	39.01%	-23.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	42.02%	-23.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.45%	41.62%	-22.17%

Dividends

PHO vs. WMS - Dividend Comparison

PHO's dividend yield for the trailing twelve months is around 0.58%, more than WMS's 0.56% 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%
WMS Advanced Drainage Systems, Inc.	0.56%	0.48%	0.54%	0.38%	0.57%	0.31%	0.43%	3.48%	1.28%	1.13%	1.12%	0.79%

Frequently Asked Questions

Can I hold both PHO and WMS in my portfolio?

PHO and WMS have a correlation of 0.75, 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 WMS?

WMS has higher volatility (10.57%) compared to PHO (4.01%). In terms of maximum drawdown, PHO dropped -55.62% vs WMS's -53.58%.

Which has better risk-adjusted returns?

WMS currently has the higher Sharpe Ratio (0.52 vs -0.25), 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.