Invesco Water Resources ETF
Price
$72.18
YTD
—
Expense
0.60%
Yield
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Best Water ETFs for 2026
Discover the best water ETFs for 2026. Compare PHO, FIW, CGW and funds investing in water infrastructure, treatment, and conservation.
Complete Guide to Water ETFs in 2026
Water is the ultimate essential resource, and the global water industry is projected to reach $1.5 trillion by 2030. Aging infrastructure in developed countries, water scarcity in developing nations, and increasing regulation of water quality create a powerful secular growth trend for water-related companies.
Why Water Investing?
The US alone needs $625 billion in water infrastructure investment over the next 20 years (EPA estimate). Climate change is exacerbating water scarcity, with 40% of the world's population expected to face water stress by 2030. These challenges create durable demand for water treatment, distribution, and conservation technologies.
Top Water ETFs
PHO (Invesco Water Resources ETF): The largest water ETF with holdings in Xylem, Roper Technologies, American Water Works, and Danaher. Focuses on US-listed water infrastructure and technology companies.
FIW (First Trust Water ETF): A more concentrated water fund with approximately 35 holdings, equally weighted for diversification.
CGW (Invesco S&P Global Water Index ETF): Provides global water exposure including European water utilities like Veolia and American Water Works.
🏆 Winner — #1 pick
Invesco S&P Global Water Index ETF
Price
$65.36
YTD
—
Expense
0.57%
Yield
—
Frequently asked questions
What is a Water ETF?
A Water ETF is an exchange-traded fund that invests in companies involved in water infrastructure, treatment, distribution, and conservation technologies.
Why invest in Water ETFs?
Water ETFs allow investors to capitalize on the growing demand for water infrastructure and technology due to scarcity, aging systems, and regulatory requirements.
What is the largest Water ETF in 2026?
PHO (Invesco Water Resources ETF) is the largest Water ETF, focusing on US-listed water infrastructure and technology companies.
Which companies are held in PHO?
PHO includes holdings in Xylem, Roper Technologies, American Water Works, and Danaher.
What is FIW ETF?
FIW (First Trust Water ETF) is a concentrated water-focused ETF with approximately 35 equally weighted holdings, providing diversification across the sector.
What is CGW ETF?
CGW (Invesco S&P Global Water Index ETF) provides global exposure to water companies, including European utilities like Veolia and American Water Works.
Why is water investing considered a secular growth trend?
Global water demand is rising due to population growth, urbanization, aging infrastructure, climate change, and stricter water quality regulations.
How much does the US need to invest in water infrastructure?
The US requires approximately $625 billion in water infrastructure investment over the next 20 years according to the EPA.
What regions do Water ETFs invest in?
US-focused ETFs like PHO primarily invest in US companies, while CGW offers global exposure including Europe and developed markets.
Do Water ETFs pay dividends?
Some Water ETFs may pay modest dividends from utility holdings, but they are generally lower than income-focused ETFs.
What is the expense ratio of PHO?
PHO has an expense ratio of 0.6%.
What is the expense ratio of CGW?
CGW has an expense ratio of 0.57%.
Are Water ETFs suitable for conservative investors?
Yes, Water ETFs are generally considered moderate-risk investments with exposure to essential services, though they may be affected by market volatility.
What industries are included in Water ETFs?
Water ETFs include companies in water treatment, purification, infrastructure, distribution, and conservation technology.
How do global water challenges affect these ETFs?
Challenges like water scarcity, climate change, and infrastructure needs create growth opportunities for companies in the ETFs, driving potential long-term returns.
What is the YTD return of PHO in 2026?
The YTD return for PHO is not specified but is influenced by the performance of water infrastructure and technology companies.
How liquid are Water ETFs?
Water ETFs like PHO and CGW are traded on major exchanges, providing reasonable liquidity for investors.
Can Water ETFs be held in retirement accounts?
Yes, Water ETFs can be held in IRAs, 401(k)s, and other tax-advantaged accounts.
Who should consider investing in Water ETFs?
Investors seeking exposure to long-term secular growth in essential resources, infrastructure, and technology may consider Water ETFs.
What is the main risk of Water ETFs?
Water ETFs face market risk, regulatory changes, and company-specific risk, especially for technology and utility-focused holdings.