PHO vs QQQ
Invesco Water Resources ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PHO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.18% | |
| AUM | $2.1B | $496.3B | |
| Dividend Yield | 0.58% | 0.44% | |
| Holdings | 42 | 108 | |
| YTD Return | +1.90% | +19.52% | |
| 1Y Return | -0.32% | +26.68% | |
| 3Y Return (annualized) | +8.84% | +26.64% | |
| 5Y Return (annualized) | +4.86% | +15.36% | |
| Volatility (annualized) | 18.8% | 30.6% | |
| Max Drawdown | -55.8% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 6, 2005 | Mar 10, 1999 |
PHO vs QQQ Performance
Invesco Water Resources ETF (PHO) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHO returned -0.32% while QQQ returned +26.68%. Year to date, PHO is up 1.90% versus a gain of 19.52% for QQQ.
Over three years, PHO compounded at +8.84% per year against +26.64% for QQQ; over five years the annualized figures are +4.86% and +15.36% respectively. Across the full 21-year window we track, QQQ has the edge at +13.14% annualized vs +7.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.8% for PHO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -55.8% for PHO and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHO charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, PHO currently yields 0.58% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, PHO or QQQ?
PHO has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PHO or QQQ?
Over the past year PHO returned -0.32% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PHO annualized +7.85% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.8% for PHO. Worst drawdown: PHO -55.8% vs QQQ -83.0%.
Should I hold both PHO and QQQ?
PHO and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHO and QQQ?
PHO and QQQ share 2 common holdings with a 0.4% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, PHO or QQQ?
PHO yields 0.58% while QQQ yields 0.44%, so PHO currently pays the higher dividend yield.
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