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Invesco Water Resources Portfolio ETF: More Than What Comes Out Of The Tap

Mar. 12, 2021 9:00 AM ETInvesco Water Resources ETF (PHO) ETF1 Comment


  • Population growth and climate change have made securing fresh water supplies a much higher priority in many parts of the world, including recently Texas.
  • Like for other natural resource ETFs, Invesco has now sponsored an ETF that uses a water-focused index to provide investors one investment for complete coverage of the water industry.
  • While water might replace oil as the most precious liquid the world needs, the current price of PHO has me Neutral on the ETF at this time.

Splashing, Splash, Aqua, Water, Pouring, Clear, DropletSource: cdn.pixabay.com


Securing an ample supply of clean drinking water is only a Third World problem, or so many of us probably thought until the recent Artic blast bought the state of Texas and much of the South to temporary "third world" status. Frozen windmills and pipelines cratered the power grid which then led to water mains freezing and indoor plumbing bursting as water froze in pipes. Weeks later, clean water is still a luxury to many as cities and homeowners struggle to back to normal.

The Invesco Water Resources Portfolio ETF (NASDAQ:PHO) provides investors the ability to invest in not only water utilities, but the companies that literally provides the means of supplying this life-required source up and down the pipeline. Demand for water is increasing, not only due to population growth, but as people move up the economic ladder, their demand for water climbs with them. While water might replace oil as the most precious liquid the world needs, the current price of the ETF has me Neutral on PHO at this time.

Is Water becoming the new Oil?

I remember hearing that Boone Pickens, who made his fortune in oil, had turned to buying up water rights all over West Texas and by 2008, he was probably the largest water rights owner in the United States.

The U.S. uses a large amount of water each day compared to other countries.

Source: cdc.gov

Like most resources, Americans lead the world in water consumption. This personal usage is only about 13% of the total water usage in the US.


Source: ensia.com


Source: usgs.gov

While the earth is covered with water (71%), fresh water is only 2.5% of all the water available on the planet, and 68.7% of that is locked up in glaciers and the polar ice caps, thus not readily available.

Here are some thoughts on the idea that water is

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Comments (1)

hawkrnc_19 profile picture
New name better serves their marketing than the fund the investor.
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