Core Viewpoint - The Invesco Water Resources ETF (PHO) is a smart beta ETF designed to provide broad exposure to the Industrials ETFs category, focusing on companies involved in water conservation and purification [1][5]. Fund Overview - PHO was launched on December 6, 2005, and has accumulated over $2.18 billion in assets, making it one of the larger ETFs in its category [1][5]. - The fund aims to match the performance of the NASDAQ OMX US Water Index, which tracks US companies that create products for water conservation and purification [5]. Cost and Expenses - The annual operating expenses for PHO are 0.59%, which is competitive within its peer group [6]. - The ETF has a 12-month trailing dividend yield of 0.49% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising approximately 62.6% of the portfolio, with Utilities and Information Technology as the next largest sectors [7]. - Ferguson Enterprises Inc (FERG) is the largest holding at about 9.31%, followed by Ecolab Inc (ECL) and Roper Technologies Inc (ROP). The top 10 holdings account for around 60.13% of total assets [8]. Performance Metrics - As of July 31, 2025, PHO has gained approximately 7.23% over the past year and is up about 2.03% year-to-date [10]. - The ETF has traded between $58.13 and $72.14 in the last 52 weeks, with a beta of 0.99 and a standard deviation of 18.12% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the water resources space include the Invesco S&P Global Water Index ETF (CGW) and the First Trust Water ETF (FIW), with assets of $972.33 million and $1.86 billion, respectively [12]. - CGW has an expense ratio of 0.56%, while FIW charges 0.51%, providing investors with lower-cost options [12].