WMS vs. PHO

Last updated Jun 23, 2026

WMS (Advanced Drainage Systems, Inc.) is a stock, while PHO (Invesco Water Resources ETF) is Water Equities fund tracking the NASDAQ OMX US Water Index. Over the past 10 years, WMS returned 19.77%/yr vs 11.81%/yr for PHO. A 0.62 correlation means they provide meaningful diversification when combined.

Performance

WMS vs. PHO - Performance Comparison

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

Returns By Period

In the year-to-date period, WMS achieves a -2.12% return, which is significantly higher than PHO's -4.80% return. Over the past 10 years, WMS has outperformed PHO with an annualized return of 19.77%, while PHO has yielded a comparatively lower 11.81% annualized return.

WMS

• 1D: -3.89%
• 1M: 6.47%
• YTD: -2.12%
• 6M: -5.03%
• 1Y: 24.29%
• 3Y*: 8.81%
• 5Y*: 6.06%
• 10Y*: 19.77%

PHO

• 1D: -0.65%
• 1M: 2.31%
• YTD: -4.80%
• 6M: -6.74%
• 1Y: -1.51%
• 3Y*: 7.41%
• 5Y*: 5.40%
• 10Y*: 11.81%

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

WMS vs. PHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WMS Advanced Drainage Systems, Inc.	-2.12%	25.97%	-17.48%	72.44%	-39.53%	63.46%	116.70%	67.74%	2.78%	17.27%
PHO Invesco Water Resources ETF	-4.80%	7.62%	8.59%	18.85%	-14.86%	31.28%	20.83%	37.57%	-6.40%	23.55%

Correlation

The correlation between WMS and PHO is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Jul 25, 2014	0.62

The correlation between WMS and PHO shifts across timeframes, from 0.62 (all time) to 0.77 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

WMS vs. PHO — Risk / Return Rank

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

WMS

WMS Risk / Return Rank: 61
WMS Sharpe Ratio Rank: 62
WMS Sortino Ratio Rank: 61
WMS Omega Ratio Rank: 57
WMS Calmar Ratio Rank: 62
WMS Martin Ratio Rank: 62

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: 8
PHO Martin Ratio Rank: 7

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.

WMS vs. PHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Advanced Drainage Systems, Inc. (WMS) 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.

	WMS	PHO	Difference
Sharpe ratio: Return per unit of total volatility	0.61	-0.10	+0.71
Sortino ratio: Return per unit of downside risk	1.24	-0.03	+1.28
Omega ratio: Gain probability vs. loss probability	1.14	1.00	+0.14
Calmar ratio: Return relative to maximum drawdown	0.94	-0.11	+1.05
Martin ratio: Return relative to average drawdown	2.16	-0.26	+2.42

WMS vs. PHO - Sharpe Ratio Comparison

The current WMS Sharpe Ratio is 0.61, which is higher than the PHO Sharpe Ratio of -0.10. The chart below compares the historical Sharpe Ratios of WMS 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.

Drawdowns

WMS vs. PHO - Drawdown Comparison

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

Drawdown Indicators

	WMS	PHO	Difference
Max Drawdown Largest peak-to-trough decline	-53.58%	-55.62%	+2.04%
Max Drawdown (1Y) Largest decline over 1 year	-25.98%	-13.78%	-12.20%
Max Drawdown (3Y) Largest decline over 3 years	-45.75%	-19.19%	-26.56%
Max Drawdown (5Y) Largest decline over 5 years	-50.12%	-28.60%	-21.52%
Max Drawdown (10Y) Largest decline over 10 years	-53.58%	-34.92%	-18.66%
Current Drawdown Current decline from peak	-20.23%	-10.06%	-10.17%
Average Drawdown Average peak-to-trough decline	-17.91%	-10.18%	-7.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.29%	5.76%	+5.53%

Volatility

WMS vs. PHO - Volatility Comparison

Advanced Drainage Systems, Inc. (WMS) has a higher volatility of 13.22% compared to Invesco Water Resources ETF (PHO) at 4.38%. This indicates that WMS'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.

Volatility by Period

	WMS	PHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.22%	4.38%	+8.84%
Volatility (6M) Calculated over the trailing 6-month period	27.57%	11.31%	+16.26%
Volatility (1Y) Calculated over the trailing 1-year period	40.29%	15.20%	+25.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.20%	18.39%	+23.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.69%	19.47%	+22.22%

Dividends

WMS vs. PHO - Dividend Comparison

WMS's dividend yield for the trailing twelve months is around 0.52%, less than PHO's 0.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHO Invesco Water Resources ETF	0.76%	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.	0.52%	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 WMS and PHO in my portfolio?

WMS and PHO have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WMS or PHO?

WMS has higher volatility (13.22%) compared to PHO (4.38%). In terms of maximum drawdown, WMS dropped -53.58% vs PHO's -55.62%.

Which has better risk-adjusted returns?

WMS currently has the higher Sharpe Ratio (0.61 vs -0.10), 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.