PHO vs SPY
Invesco Water Resources ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PHO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.09% | |
| AUM | $2.1B | $821.1B | |
| Dividend Yield | 0.58% | 1.01% | |
| Holdings | 42 | 505 | |
| YTD Return | +0.31% | +12.93% | |
| 1Y Return | -1.75% | +20.62% | |
| 3Y Return (annualized) | +9.10% | +22.00% | |
| 5Y Return (annualized) | +4.94% | +13.33% | |
| Volatility (annualized) | 18.8% | 15.3% | |
| Max Drawdown | -55.8% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 6, 2005 | Jan 22, 1993 |
PHO vs SPY Performance
Invesco Water Resources ETF (PHO) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PHO returned -1.75% while SPY returned +20.62%. Year to date, PHO is up 0.31% versus a gain of 12.93% for SPY.
Over three years, PHO compounded at +9.10% per year against +22.00% for SPY; over five years the annualized figures are +4.94% and +13.33% respectively. Across the full 21-year window we track, SPY has the edge at +8.82% annualized vs +7.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PHO has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHO charges 0.59% per year while SPY charges 0.09%. On a $10,000 position that is $59 vs $9 annually, a gap of $50 per year that compounds over a long holding period. On income, PHO currently yields 0.58% against 1.01% for SPY.
Holdings Overlap
PHO and SPY share 14 holdings out of 531 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PHO or SPY?
PHO has an expense ratio of 0.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, PHO or SPY?
Over the past year PHO returned -1.75% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), PHO annualized +7.76% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PHO or SPY?
PHO has been the more volatile fund at 18.8% annualized versus 15.3% for SPY. Worst drawdown: PHO -55.8% vs SPY -56.5%.
Should I hold both PHO and SPY?
PHO and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHO and SPY?
PHO and SPY share 14 common holdings with a 0.7% weight overlap. Combined, they hold 531 unique securities.
Which pays a higher dividend, PHO or SPY?
PHO yields 0.58% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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