Is Invesco Global Water ETF (PIO) a Strong ETF Right Now?

The Invesco Global Water ETF (PIO) made its debut on 06/13/2007, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $272.55 million, making it one of the average sized ETFs in the Industrials ETFs. This particular fund 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.Cost & Other ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Operating expenses on an annual basis are 0.75% for PIO, making it one of the most expensive products in the space.PIO's 12-month trailing dividend yield is 0.82%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Taking into account individual holdings, Pentair Plc (PNR) accounts for about 9.27% of the fund's total assets, followed by Roper Technologies Inc (ROP) and Ecolab Inc (ECL).The top 10 holdings account for about 57.95% of total assets under management.Performance and RiskYear-to-date, the Invesco Global Water ETF return is roughly 5.91% so far, and it's up approximately 15.50% over the last 12 months (as of 12/02/2024). PIO has traded between $36.65 and $43.54 in this past 52-week period.The fund has a beta of 1.04 and standard deviation of 18.69% for the trailing three-year period, which makes PIO a medium risk choice in this particular space. With about 46 holdings, it has more concentrated exposure than peers.AlternativesInvesco Global Water ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.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 $1.92 billion in assets, Invesco Water Resources ETF has $2.33 billion. FIW has an expense ratio of 0.53% and PHO charges 0.60%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Global Water ETF (PIO): ETF Research Reports Ecolab Inc. (ECL): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis Report First Trust Water ETF (FIW): ETF Research Reports Invesco Water Resources ETF (PHO): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks