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

Launched on 06/13/2007, the Invesco Global Water ETF (PIO) is a smart beta exchange traded fund offering 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.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $278.87 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 ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Annual operating expenses for PIO are 0.75%, which makes it one of the most expensive products in the space.It has a 12-month trailing dividend yield of 1.03%.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 8.47% of the fund's total assets, followed by Ecolab Inc (ECL) and Veolia Environnement Sa (VIE).Its top 10 holdings account for approximately 59.68% of PIO's total assets under management.Performance and RiskThe ETF has added roughly 17.15% so far this year and is up about 7.81% in the last one year (as of 10/17/2025). In the past 52-week period, it has traded between $35.79 and $45.74The ETF has a beta of 1.03 and standard deviation of 16.57% for the trailing three-year period, making it a medium risk choice in the space. With about 46 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 $1.96 billion in assets, Invesco Water Resources ETF has $2.26 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