Explore the potential benefits and risks of the Invesco Global Water ETF for your investment strategy
City: New York. The Invesco Global Water ETF (PIO) launched back in 2007. It aims to give investors a broad look at the water industry. This ETF is passively managed, which means it tracks a specific index rather than trying to outperform it.
It’s a solid choice for long-term investors. Many folks like these ETFs because they’re low-cost and transparent. Plus, they offer flexibility and tax efficiency, which is a big deal for many investors.
Sector ETFs, like PIO, are convenient. They let you invest in a whole group of companies in a specific sector, which helps spread out risk. Right now, the water sector is ranked in the bottom 31% of Zacks sectors, so it’s not the hottest area.
Invesco sponsors this fund, which has over $257 million in assets. It aims to match the NASDAQ OMX Global Water Index, focusing on companies that help conserve and purify water.
When looking at costs, PIO has an expense ratio of 0.75%. That’s on the higher side, so keep that in mind. The fund also has a trailing dividend yield of 0.77%, which is decent.
Even though ETFs are generally diversified, it’s smart to check out what’s inside. Ecolab Inc. is the biggest holding at about 8.08%, followed by Pentair and Roper Technologies. The top 10 holdings make up over half of the total assets.
This ETF has seen a bit of growth, up about 1.54% this year. It’s traded between $37.72 and $43.54 in the last year. With a beta of 1.03, it’s considered a medium-risk option.
PIO has a Zacks ETF Rank of 3, which means it’s a hold. If you’re looking for alternatives, check out the First Trust Water ETF or the Invesco Water Resources ETF. They have lower expense ratios and more assets under management.
In short, if you’re curious about this ETF or others, it’s worth doing some research. You can find more info on Zacks ETF Center to help you make informed decisions.
