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

The Invesco Global Water ETF (PIO) made its debut on 06/13/2007, and is a smart beta exchange traded fund that provides 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.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $270.72 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, this particular fund 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 ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.75% for PIO, making it one of the most expensive products in the space.It's 12-month trailing dividend yield comes in at 1.70%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Taking into account individual holdings, Cia De Saneamento Basico Do Estado De Sao Paulo Sabesp (SBSP3) accounts for about 8.9% of the fund's total assets, followed by Roper Technologies Inc (ROP) and Ebara Corp (J12600128).Its top 10 holdings account for approximately 59.96% of PIO's total assets under management.Performance and RiskThe ETF has added about 1.52% and was up about 4.54% so far this year and in the past one year (as of 06/23/2026), respectively. PIO has traded between $42.19 and $48.63 during this last 52-week period. PIO has a beta of 1.00 and standard deviation of 15.62% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 47 holdings, it has more concentrated exposure than peers .AlternativesInvesco Global Water ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.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 $1.78 billion in assets, Invesco Water Resources ETF has $1.96 billion. FIW has an expense ratio of 0.50% 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 >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks