UNG vs. PHO
UNG (United States Natural Gas Fund LP) and PHO (Invesco Water Resources ETF) are both exchange-traded funds - UNG is a Oil & Gas fund tracking the Front Month Natural Gas Futures, while PHO is a Water Equities fund tracking the NASDAQ OMX US Water Index. Both are passively managed. Over the past 10 years, UNG returned -21.41%/yr vs 12.39%/yr for PHO. At a 0.05 correlation, their price movements are largely independent. UNG charges 1.17%/yr vs 0.59%/yr for PHO.
Performance
UNG vs. PHO - Performance Comparison
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Returns By Period
In the year-to-date period, UNG achieves a -4.16% return, which is significantly lower than PHO's -1.45% return. Over the past 10 years, UNG has underperformed PHO with an annualized return of -21.41%, while PHO has yielded a comparatively higher 12.39% annualized return.
UNG
- 1D
- 0.17%
- 1M
- 7.70%
- YTD
- -4.16%
- 6M
- -5.17%
- 1Y
- -25.87%
- 3Y*
- -27.47%
- 5Y*
- -24.93%
- 10Y*
- -21.41%
PHO
- 1D
- 1.83%
- 1M
- 5.22%
- YTD
- -1.45%
- 6M
- -3.31%
- 1Y
- 0.21%
- 3Y*
- 8.57%
- 5Y*
- 5.95%
- 10Y*
- 12.39%
UNG vs. PHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
UNG United States Natural Gas Fund LP | -4.16% | -27.07% | -17.11% | -64.04% | 12.89% | 35.76% | -45.43% | -31.77% | 5.96% | -37.58% |
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% |
Correlation
The correlation between UNG and PHO is -0.20, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Apr 18, 2007 | 0.05 |
The correlation between UNG and PHO shifts across timeframes, from -0.20 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
UNG vs. PHO — Risk / Return Rank
UNG
PHO
UNG vs. PHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Natural Gas Fund LP (UNG) and Invesco Water Resources ETF (PHO). 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.
| UNG | PHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.45 | ||
| Sortino ratioReturn per unit of downside risk | -0.39 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.01 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | -0.65 | 0.02 | -0.67 |
| Martin ratioReturn relative to average drawdown | -1.01 | 0.04 | -1.05 |
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Drawdowns
UNG vs. PHO - Drawdown Comparison
The maximum UNG drawdown since its inception was -99.88%, which is greater than PHO's maximum drawdown of -55.62%. Use the drawdown chart below to compare losses from any high point for UNG and PHO.
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Drawdown Indicators
| UNG | PHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.88% | -55.62% | -44.26% |
Max Drawdown (1Y)Largest decline over 1 year | -39.94% | -13.78% | -26.16% |
Max Drawdown (3Y)Largest decline over 3 years | -68.16% | -19.19% | -48.97% |
Max Drawdown (5Y)Largest decline over 5 years | -92.49% | -28.60% | -63.89% |
Max Drawdown (10Y)Largest decline over 10 years | -93.55% | -34.92% | -58.63% |
Current DrawdownCurrent decline from peak | -99.86% | -6.89% | -92.97% |
Average DrawdownAverage peak-to-trough decline | -89.97% | -10.18% | -79.79% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 25.62% | 5.83% | +19.79% |
Volatility
UNG vs. PHO - Volatility Comparison
United States Natural Gas Fund LP (UNG) has a higher volatility of 11.62% compared to Invesco Water Resources ETF (PHO) at 4.98%. This indicates that UNG's price experiences larger fluctuations and is considered to be riskier than PHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UNG | PHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.62% | 4.98% | +6.64% |
Volatility (6M)Calculated over the trailing 6-month period | 50.81% | 11.59% | +39.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 60.16% | 15.32% | +44.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 64.12% | 18.42% | +45.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 54.78% | 19.46% | +35.32% |
UNG vs. PHO - Expense Ratio Comparison
UNG has a 1.17% expense ratio, which is higher than PHO's 0.59% expense ratio.
Dividends
UNG vs. PHO - Dividend Comparison
UNG has not paid dividends to shareholders, while PHO's dividend yield for the trailing twelve months is around 0.58%.
| 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% |
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
UNG and PHO have a correlation of -0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
UNG has higher volatility (11.62%) compared to PHO (4.98%). In terms of maximum drawdown, UNG dropped -99.88% vs PHO's -55.62%.
On 10-year performance, PHO leads with 12.39% vs -21.41% for UNG. On fees, PHO is cheaper at 0.59% per year. On volatility, PHO has been the lower-risk option at 4.98%. 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 12.39% return vs -21.41%. 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 0.58%, compared with 0.00% for UNG.
UNG is categorized as Oil & Gas, while PHO is Water Equities. UNG tracks Front Month Natural Gas Futures, while PHO tracks NASDAQ OMX US Water Index. They also come from different issuers: USCF Investments and Invesco. Their fees differ too: 1.17% for UNG and 0.59% for PHO.
PHO currently has the higher Sharpe Ratio (0.01 vs -0.43), 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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