water sprite vs faerie

water sprite and faerie both are nouns.

Word	Noun	Adjective	Verb	Adverb
water sprite	Yes	No	No	No
faerie	Yes	No	No	No

As nouns, faerie is a hypernym of water sprite; that is, faerie is a word with a broader meaning than water sprite:

Other hypernyms of water sprite include faery, fairy, fay, sprite.

water sprite (noun)	faerie (noun)
a fairy that inhabits water	the enchanted realm of fairies
aquatic fern of tropical America often used in aquariums	a small being, human in form, playful and having magical powers