PHO: Still Not The Best Pick For Water Industry Exposure

The Invesco Water Resources ETF has underperformed both the S&P 500 and several competing water ETFs since late 2024. PHO's portfolio is light on water exposure, with top holdings like Waters, Roper, and Ecolab being only modestly linked to the theme. PHO could outperform if the AI CAPEX boom fades and other industries like software and life sciences rebound, given its portfolio tilt.