What happened
According to an SEC filing dated Jan. 9, 2026, Murphy, Middleton, Hinkle & Parker, Inc. (MMHP) established a new position in Invesco Water Resources ETF (PHO 0.34%), purchasing 9,484 shares. The estimated transaction value was $6.47 million, based on the average closing price for the quarter.
What else to know
This was a new position, representing 3.13% of the fund's 13F reportable assets under management (AUM) as of Dec. 31, 2025.
MMHP's top five holdings after the filing were:
- PPG Industries: $10.87 million (5.3% of AUM)
- Netflix: $9.23 million (4.5% of AUM)
- Berkshire Hathaway Class B: $8.00 million (3.9% of AUM)
- Invesco Water Resources ETF: $6.47 million (3.1% of AUM)
- Carnival: $6.45 million (3.1% of AUM)
As of Jan. 12, 2026, shares of PHO were priced at $73.00, up 13.2% over the past twelve months, underperforming the S&P 500 by 6 percentage points over the same period. The fund’s total reportable U.S. equity assets were $209 million across 39 positions after this filing. PHO’s indicated dividend yield was 0.59% as of Jan. 12, 2026, with shares 2.2% below their 52-week high.
ETF overview
| Metric | Value |
|---|---|
| AUM | $2.09 billion |
| Price (as of market close Jan. 12, 2026) | $73.00 |
| Dividend yield | 0.59% |
| 1-year total return | 13.7% |
ETF snapshot
Invesco Water Resources ETF's:
- Investment strategy: Seeks to track an index of companies that develop products and technologies for water conservation and purification across residential, commercial, and industrial applications.
- Portfolio composition: Holds a diversified basket of U.S.-listed equities, including common stocks and American depositary receipts (ADRs), with at least 90% of assets invested in index constituents focused on water resources.
- Fund structure: A non-diversified ETF with a passive management approach, focusing on long-term capital appreciation. Expense ratios and detailed cost structures are available in regulatory filings.
The Invesco Water Resources ETF provides investors with targeted exposure to companies advancing water infrastructure, purification, and conservation solutions. The fund leverages a rules-based index methodology to capture performance in the water resources sector, offering a liquid and transparent vehicle for thematic allocation. Its strategy positions the ETF as a specialized tool for investors seeking to address global water challenges through equity markets.
What this transaction means for investors
MMHP's purchase of the Invesco Water Resources ETF is something for investors to take note of. Not only was this the opening buy of PHO for the firm, but the ETF immediately became MMHP's fourth-largest holding. This is far from a mere starter position for the investment advisors. Since 2005, the ETF has generated an annualized total return of 8.6%, becoming a five-bagger over that period. However, this figure slightly lags the S&P 500's 11% mark over the same time.
With its top five holdings -- Ecolab, Roper Technologies, Ferguson Enterprises, Waters Corp., and American Water Works -- comprising 37% of its portfolio, PHO is home to a strong group of water-focused, steady-Eddie stocks. While this is excellent for stability and safety (especially when viewed over the long term, as water will never cease being a critical resource), the ETF may not be a market-stomping investment, necessarily.
Furthermore, the ETF charges a 0.59% expense fee, which is higher than I would prefer to pay. Ultimately, I would rather buy and hold individual water stocks (such as Badger Meter) than pay a mildly hefty fee to hold PHO. However, if an investor is interested in this niche, PHO's solid long-term track record makes it a reasonable way to get exposure to this industry, and I certainly understand why MMHP bought it.
