EFAA vs. PPA

Last updated Jun 26, 2026

EFAA (Invesco MSCI EAFE Income Advantage ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - EFAA is a Derivative Income fund actively managed by Invesco, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. EFAA is actively managed, while PPA is passively managed. Over the past year, EFAA returned 18.86% vs 26.01% for PPA. At a 0.47 correlation, their price movements are largely independent. EFAA charges 0.39%/yr vs 0.58%/yr for PPA.

Performance

EFAA vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI EAFE Income Advantage ETF (EFAA) and Invesco Aerospace & Defense ETF (PPA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EFAA achieves a 6.79% return, which is significantly lower than PPA's 9.73% return.

EFAA

• 1D: 0.75%
• 1M: 0.32%
• YTD: 6.79%
• 6M: 6.66%
• 1Y: 18.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PPA

• 1D: 0.37%
• 1M: -1.27%
• YTD: 9.73%
• 6M: 7.35%
• 1Y: 26.01%
• 3Y*: 28.70%
• 5Y*: 18.28%
• 10Y*: 18.02%

*Multi-year figures are annualized to reflect compound growth (CAGR)

EFAA vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EFAA Invesco MSCI EAFE Income Advantage ETF	6.79%	25.80%	-3.61%
PPA Invesco Aerospace & Defense ETF	9.73%	37.15%	7.23%

Correlation

The correlation between EFAA and PPA is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (All Time) Calculated using the full available price history since Jul 17, 2024	0.47

The correlation between EFAA and PPA has been stable across timeframes, ranging from 0.47 to 0.51 - a consistent structural relationship.

EFAA vs. PPA - Sectors Allocation Comparison

Sectors	EFAA	PPA
Financial Services	25.0%	0.1%
Industrials	14.2%	90.6%
Technology	10.1%	9.2%
Healthcare	7.2%	-
Consumer Defensive	5.2%	-
Consumer Cyclical	4.5%	-
Basic Materials	4.1%	-
Communication Services	3.5%	0.1%
Energy	2.7%	-
Utilities	2.6%	-
Real Estate	1.3%	-

Return for Risk

EFAA vs. PPA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EFAA

EFAA Risk / Return Rank: 48
EFAA Sharpe Ratio Rank: 50
EFAA Sortino Ratio Rank: 50
EFAA Omega Ratio Rank: 50
EFAA Calmar Ratio Rank: 42
EFAA Martin Ratio Rank: 48

PPA

PPA Risk / Return Rank: 41
PPA Sharpe Ratio Rank: 41
PPA Sortino Ratio Rank: 44
PPA Omega Ratio Rank: 38
PPA Calmar Ratio Rank: 44
PPA Martin Ratio Rank: 38

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EFAA vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI EAFE Income Advantage ETF (EFAA) and Invesco Aerospace & Defense ETF (PPA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	EFAA	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.53	1.30	+0.23
Sortino ratio: Return per unit of downside risk	2.16	1.96	+0.21
Omega ratio: Gain probability vs. loss probability	1.28	1.23	+0.06
Calmar ratio: Return relative to maximum drawdown	1.87	1.91	-0.04
Martin ratio: Return relative to average drawdown	7.20	5.24	+1.96

EFAA vs. PPA - Sharpe Ratio Comparison

The current EFAA Sharpe Ratio is 1.53, which is comparable to the PPA Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of EFAA and PPA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EFAA vs. PPA - Drawdown Comparison

The maximum EFAA drawdown since its inception was -11.97%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for EFAA and PPA.

Drawdown Indicators

	EFAA	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-11.97%	-57.37%	+45.40%
Max Drawdown (1Y) Largest decline over 1 year	-10.14%	-13.71%	+3.57%
Max Drawdown (3Y) Largest decline over 3 years	—	-15.24%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.37%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-43.92%	—
Current Drawdown Current decline from peak	-0.84%	-7.39%	+6.55%
Average Drawdown Average peak-to-trough decline	-2.02%	-9.18%	+7.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	4.97%	-2.34%

Volatility

EFAA vs. PPA - Volatility Comparison

The current volatility for Invesco MSCI EAFE Income Advantage ETF (EFAA) is 4.19%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 7.99%. This indicates that EFAA experiences smaller price fluctuations and is considered to be less risky than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EFAA	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.19%	7.99%	-3.80%
Volatility (6M) Calculated over the trailing 6-month period	10.42%	16.83%	-6.41%
Volatility (1Y) Calculated over the trailing 1-year period	12.41%	20.14%	-7.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.08%	18.70%	-5.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.08%	20.72%	-7.64%

EFAA vs. PPA - Expense Ratio Comparison

EFAA has a 0.39% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

EFAA vs. PPA - Dividend Comparison

EFAA's dividend yield for the trailing twelve months is around 8.18%, more than PPA's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFAA Invesco MSCI EAFE Income Advantage ETF	8.18%	7.94%	3.29%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PPA Invesco Aerospace & Defense ETF	0.37%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%

Frequently Asked Questions

Can I hold both EFAA and PPA in my portfolio?

EFAA and PPA have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EFAA or PPA?

PPA has higher volatility (7.99%) compared to EFAA (4.19%). In terms of maximum drawdown, EFAA dropped -11.97% vs PPA's -57.37%.

Which ETF is better, EFAA or PPA?

On 1-year performance, PPA leads with 26.01% vs 18.86% for EFAA. On fees, EFAA is cheaper at 0.39% per year. On volatility, EFAA has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EFAA or PPA?

Over the 1-year period, PPA has performed better with a 26.01% return vs 18.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EFAA or PPA?

EFAA is cheaper with a 0.39% expense ratio, compared with 0.58% for PPA.

Which ETF pays a higher dividend yield, EFAA or PPA?

EFAA has the higher dividend yield at 8.18%, compared with 0.37% for PPA.

What is the main difference between EFAA and PPA?

EFAA is categorized as Derivative Income, while PPA is Aerospace & Defense. Their fees differ too: 0.39% for EFAA and 0.58% for PPA.

Which has better risk-adjusted returns?

EFAA currently has the higher Sharpe Ratio (1.53 vs 1.30), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.