5 Best Natural Resources ETFs

3. Invesco Water Resources ETF (NASDAQ:PHO)

5-Year Performance as of October 9: 81.20%

Launched in December 2005, Invesco Water Resources ETF (NASDAQ:PHO) is linked to the NASDAQ OMX US Water Index which reflects on the performance of the American companies involved in the conservation and purification of water. The ETF allocates a minimum of 90% of its total assets to common stocks, American depositary receipts (ADRs), and global depositary receipts (GDRs) of companies within the water industry that are part of the underlying index. As of October 9, the ETF manages a portfolio of 40 stocks, while featuring an expense ratio of 0.60%. Invesco Water Resources ETF (NASDAQ:PHO) ranks 4th on our list of the best natural resources ETFs. 

Danaher Corporation (NYSE:DHR) is one of the prominent holdings of Invesco Water Resources ETF (NASDAQ:PHO). Danaher Corporation (NYSE:DHR) specializes in the manufacture of medical, industrial, and professional products within these four segments – Biotechnology, Life Sciences, Diagnostics, and Environmental & Applied Solutions.

According to Insider Monkey’s second quarter database, 89 hedge funds were bullish on  Danaher Corporation (NYSE:DHR). In comparison, 90 hedge funds held a similar position in the company during the past quarter.

Third Point Management had this to say about Danaher Corporation (NYSE:DHR) in its second quarter 2023 investor letter:

“Danaher Corporation (NYSE:DHR) is our longest held investment and remains a top five position. Danaher has underperformed the S&P 500 this year due to a slowdown in the bioprocessing industry and more cautious spending by biopharma customers. Bioprocessing is a key end-market that drives more than a quarter of Danaher’s profits. Bioprocessing products are the main inputs that biopharma companies use to manufacture biologic drugs, which are the fastest growing category of drugs, growing low-to-mid-teens and representing a sizable portion of the clinical pipeline.”