Tuesday's deal gives Indiana two of the top nine selections in April's WNBA draft, with its own pick at No. 5 and the Mercury's slot at nine.
Phillips played on Indiana's 2012 championship team, but she missed most of last season with knee problems. She has career averages of 6.9 points, 2.0 rebounds and 2.1 assists heading into her seventh season in the league.
Kizer was a third-round draft pick in 2012 and spent time with Tulsa and Phoenix last year. She is currently playing in Europe.