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UNG vs. PHO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

UNG vs. PHO

Last updated Jun 5, 2026

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, 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 -20.42%/yr vs 11.46%/yr for PHO. At a 0.05 correlation, their price movements are largely independent. UNG charges 1.28%/yr vs 0.60%/yr for PHO.

Performance

UNG vs. PHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in United States Natural Gas Fund LP (UNG) and Invesco Water Resources ETF (PHO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, UNG achieves a -1.14% return, which is significantly higher than PHO's -5.33% return. Over the past 10 years, UNG has underperformed PHO with an annualized return of -20.42%, while PHO has yielded a comparatively higher 11.46% annualized return.

UNG

1D
3.50%
1M
13.91%
YTD
-1.14%
6M
-22.61%
1Y
-28.33%
3Y*
-21.15%
5Y*
-22.57%
10Y*
-20.42%

PHO

1D
0.08%
1M
-2.73%
YTD
-5.33%
6M
-7.58%
1Y
-3.52%
3Y*
7.94%
5Y*
5.23%
10Y*
11.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

UNG vs. PHO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
UNG
United States Natural Gas Fund LP		-1.14%-27.07%-17.11%-64.04%12.89%35.76%-45.43%-31.77%5.96%-37.58%
PHO
Invesco Water Resources ETF		-5.33%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 -0.25, 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

-0.25

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 19, 2007

0.05

The correlation between UNG and PHO shifts across timeframes, from -0.25 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

United States Natural Gas Fund LP

Invesco Water Resources ETF

Often compared with UNG:
UNG vs. BOILUNG vs. FCGUNG vs. UNLUNG vs. LNGUNG vs. BNOUNG vs. WEATUNG vs. KOLD
Often compared with PHO:
PHO vs. FIWPHO vs. CGWPHO vs. PIOPHO vs. AQWAPHO vs. SPYPHO vs. VOOPHO vs. EVX

Return for Risk

UNG vs. PHO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
UNG
UNG Risk / Return Rank: 55
Overall Rank
UNG Sharpe Ratio Rank: 55
Sharpe Ratio Rank
UNG Sortino Ratio Rank: 66
Sortino Ratio Rank
UNG Omega Ratio Rank: 66
Omega Ratio Rank
UNG Calmar Ratio Rank: 44
Calmar Ratio Rank
UNG Martin Ratio Rank: 55
Martin Ratio Rank
PHO
PHO Risk / Return Rank: 77
Overall Rank
PHO Sharpe Ratio Rank: 77
Sharpe Ratio Rank
PHO Sortino Ratio Rank: 66
Sortino Ratio Rank
PHO Omega Ratio Rank: 77
Omega Ratio Rank
PHO Calmar Ratio Rank: 77
Calmar Ratio Rank
PHO Martin Ratio Rank: 66
Martin Ratio Rank
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.

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.

UNGPHODifference
Sharpe ratioReturn per unit of total volatility
-0.47
-0.24

-0.23

Sortino ratioReturn per unit of downside risk
-0.33
-0.24

-0.09

Omega ratioGain probability vs. loss probability

0.96

0.97

-0.02

Calmar ratioReturn relative to maximum drawdown

-0.65

-0.26

-0.39

Martin ratioReturn relative to average drawdown

-0.95

-0.66

-0.29

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UNG vs. PHO - Sharpe Ratio Comparison

The current UNG Sharpe Ratio is -0.47, which is lower than the PHO Sharpe Ratio of -0.24. The chart below compares the historical Sharpe Ratios of UNG and PHO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

UNGPHODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.47

-0.24

-0.23

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.35

0.29

-0.64

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.37

0.59

-0.97

Sharpe Ratio (All Time)

Calculated using the full available price history

-0.57

0.34

-0.91

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

UNGPHODifference

Max Drawdown

Largest peak-to-trough decline

-99.88%

-55.62%

-44.26%

Max Drawdown (1Y)

Largest decline over 1 year

-43.86%

-13.78%

-30.08%

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 Drawdown

Current decline from peak

-99.85%

-10.56%

-89.29%

Average Drawdown

Average peak-to-trough decline

-89.96%

-10.18%

-79.78%

Ulcer Index

Depth and duration of drawdowns from previous peaks

29.75%

5.35%

+24.40%

Volatility

UNG vs. PHO - Volatility Comparison

United States Natural Gas Fund LP (UNG) has a higher volatility of 12.99% compared to Invesco Water Resources ETF (PHO) at 3.70%. 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

UNGPHODifference

Volatility (1M)

Calculated over the trailing 1-month period

12.99%

3.70%

+9.29%

Volatility (6M)

Calculated over the trailing 6-month period

53.06%

10.92%

+42.14%

Volatility (1Y)

Calculated over the trailing 1-year period

60.59%

14.76%

+45.83%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

64.11%

18.35%

+45.76%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

54.78%

19.45%

+35.33%

UNG vs. PHO - Expense Ratio Comparison

UNG has a 1.28% expense ratio, which is higher than PHO's 0.60% 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%.

PositionTTM20252024202320222021202020192018201720162015
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 -0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

UNG has higher volatility (12.99%) compared to PHO (3.70%). In terms of maximum drawdown, UNG dropped -99.88% vs PHO's -55.62%.

On 10-year performance, PHO leads with 11.46% vs -20.42% for UNG. On fees, PHO is cheaper at 0.60% per year. On volatility, PHO has been the lower-risk option at 3.70%. 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 11.46% return vs -20.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

PHO is cheaper with a 0.60% expense ratio, compared with 1.28% 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, while PHO tracks NASDAQ OMX US Water Index. They also come from different issuers: Concierge Technologies and Invesco. Their fees differ too: 1.28% for UNG and 0.60% for PHO.

PHO currently has the higher Sharpe Ratio (-0.24 vs -0.47), 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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