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

Making its debut on 06/13/2007, smart beta exchange traded fund Invesco Global Water ETF (PIO) provides investors broad exposure to the Industrials ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.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.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexPIO is managed by Invesco, and this fund has amassed over $274.11 million, which makes it one of the average sized ETFs in the Industrials ETFs. PIO, before fees and expenses, 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 ExpensesInvestors 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.Operating expenses on an annual basis are 0.75% for this ETF, which makes it one of the most expensive products in the space.PIO's 12-month trailing dividend yield is 1.08%.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.When you look at individual holdings, Pentair Plc (PNR) accounts for about 8.22% of the fund's total assets, followed by Veolia Environnement Sa (VIE) and Ecolab Inc (ECL).The top 10 holdings account for about 59.35% of total assets under management.Performance and RiskThe ETF has added about 15.31% so far this year and was up about 12.26% in the last one year (as of 08/12/2025). In the past 52-week period, it has traded between $35.79 and $45.25PIO has a beta of 1.00 and standard deviation of 17.55% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers .AlternativesInvesco Global Water ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.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 $1.9 billion in assets, Invesco Water Resources ETF has $2.22 billion. FIW has an expense ratio of 0.51% and PHO changes 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 ETFsBottom 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks