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

A smart beta exchange traded fund, the Invesco Global Water ETF (PIO) debuted on 06/13/2007, and offers broad exposure to the Industrials ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.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.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco. PIO has been able to amass assets over $262.58 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, PIO seeks to match the performance of the NASDAQ OMX Global Water Index.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.It has a 12-month trailing dividend yield of 0.75%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Taking into account individual holdings, Ecolab Inc (ECL) accounts for about 8.08% of the fund's total assets, followed by Pentair Plc (PNR) and Roper Technologies Inc (ROP).PIO's top 10 holdings account for about 54% of its total assets under management.Performance and RiskThe ETF has gained about 4.22% and is up about 6.78% so far this year and in the past one year (as of 02/06/2025), respectively. PIO has traded between $38.78 and $43.54 during this last 52-week period.PIO has a beta of 1.04 and standard deviation of 18.42% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 47 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 $1.81 billion in assets, Invesco Water Resources ETF has $2.18 billion. FIW has an expense ratio of 0.53% and PHO charges 0.59%.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