Should You Invest in the Invesco Global Water ETF (PIO)?

Looking for broad exposure to the Industrials - Water segment of the equity market? You should consider the Invesco Global Water ETF (PIO), a passively managed exchange traded fund launched on June 13, 2007.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $283.44 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. PIO seeks to match the performance of the NASDAQ OMX Global Water Index before fees and expenses.

The NASDAQ OMX Global Water Index is designed to track the performance of companies worldwide that are creating products that conserve and purify water for homes, businesses and industries.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.75%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 0.87%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Looking at individual holdings, Roper Technologies Inc (ROP) accounts for about 8.43% of total assets, followed by Pentair Plc (PNR) and Ecolab Inc (ECL).

The top 10 holdings account for about 54.91% of total assets under management.

Performance and Risk

So far this year, PIO has added about 6.23%, and is up about 5.53% in the last one year (as of 08/06/2026). During this past 52-week period, the fund has traded between $42.19 and $48.626.

The ETF has a beta of 0.99 and standard deviation of 15.71% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco Global Water ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PIO is a good option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

First Trust Water ETF (FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (PHO) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.93 billion in assets, Invesco Water Resources ETF has $2.08 billion. FIW has an expense ratio of 0.5%, and PHO charges 0.59%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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This article originally published on Zacks Investment Research (zacks.com).

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