EMXC vs. PPA

Last updated Jun 9, 2026

EMXC (iShares MSCI Emerging Markets ex China ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - EMXC is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 5 years, EMXC returned 11.46%/yr vs 17.94%/yr for PPA. At a 0.50 correlation, their price movements are largely independent. EMXC charges 0.49%/yr vs 0.58%/yr for PPA.

Performance

EMXC vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ex China ETF (EMXC) 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, EMXC achieves a 32.33% return, which is significantly higher than PPA's 8.41% return.

EMXC

• 1D: 2.43%
• 1M: -1.88%
• YTD: 32.33%
• 6M: 36.39%
• 1Y: 62.72%
• 3Y*: 25.41%
• 5Y*: 11.46%
• 10Y*: —

PPA

• 1D: -0.43%
• 1M: 1.28%
• YTD: 8.41%
• 6M: 11.71%
• 1Y: 25.14%
• 3Y*: 28.15%
• 5Y*: 17.94%
• 10Y*: 17.28%

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

EMXC vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EMXC iShares MSCI Emerging Markets ex China ETF	32.33%	35.14%	2.68%	18.96%	-19.56%	8.54%	12.76%	15.80%	-12.96%	7.01%
PPA Invesco Aerospace & Defense ETF	8.41%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	13.26%

Correlation

The correlation between EMXC and PPA is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since Jul 27, 2017	0.50

The correlation between EMXC and PPA has been stable across timeframes, ranging from 0.43 to 0.51 - a consistent structural relationship.

EMXC vs. PPA - Sectors Allocation Comparison

Sectors	EMXC	PPA
Technology	45.0%	9.3%
Financial Services	19.6%	0.0%
Industrials	8.3%	90.6%
Basic Materials	6.8%	-
Consumer Cyclical	4.5%	-
Energy	4.2%	-
Communication Services	3.4%	0.1%
Consumer Defensive	2.9%	-
Utilities	2.3%	-
Healthcare	2.2%	-
Real Estate	1.0%	-

Return for Risk

EMXC vs. PPA — Risk / Return Rank

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

EMXC

EMXC Risk / Return Rank: 86
EMXC Sharpe Ratio Rank: 89
EMXC Sortino Ratio Rank: 82
EMXC Omega Ratio Rank: 88
EMXC Calmar Ratio Rank: 86
EMXC Martin Ratio Rank: 88

PPA

PPA Risk / Return Rank: 40
PPA Sharpe Ratio Rank: 41
PPA Sortino Ratio Rank: 42
PPA Omega Ratio Rank: 38
PPA Calmar Ratio Rank: 41
PPA Martin Ratio Rank: 37

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.

EMXC vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ex China ETF (EMXC) 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.

	EMXC	PPA	Difference
Sharpe ratio: Return per unit of total volatility	2.71	1.32	+1.40
Sortino ratio: Return per unit of downside risk	3.27	1.94	+1.33
Omega ratio: Gain probability vs. loss probability	1.50	1.23	+0.27
Calmar ratio: Return relative to maximum drawdown	4.37	1.84	+2.53
Martin ratio: Return relative to average drawdown	17.27	5.29	+11.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EMXC vs. PPA - Sharpe Ratio Comparison

The current EMXC Sharpe Ratio is 2.71, which is higher than the PPA Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of EMXC 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.

Sharpe Ratios by Period

	EMXC	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	1.32	+1.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.97	-0.33
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.84	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.66	-0.16

Drawdowns

EMXC vs. PPA - Drawdown Comparison

The maximum EMXC drawdown since its inception was -42.81%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for EMXC and PPA.

Drawdown Indicators

	EMXC	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-42.81%	-57.37%	+14.56%
Max Drawdown (1Y) Largest decline over 1 year	-14.41%	-13.71%	-0.70%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-15.24%	-3.88%
Max Drawdown (5Y) Largest decline over 5 years	-28.91%	-18.37%	-10.54%
Max Drawdown (10Y) Largest decline over 10 years	—	-43.92%	—
Current Drawdown Current decline from peak	-7.55%	-8.50%	+0.95%
Average Drawdown Average peak-to-trough decline	-10.19%	-9.18%	-1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.64%	4.76%	-1.12%

Volatility

EMXC vs. PPA - Volatility Comparison

iShares MSCI Emerging Markets ex China ETF (EMXC) has a higher volatility of 12.57% compared to Invesco Aerospace & Defense ETF (PPA) at 6.71%. This indicates that EMXC's price experiences larger fluctuations and is considered to be riskier than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMXC	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.57%	6.71%	+5.86%
Volatility (6M) Calculated over the trailing 6-month period	21.20%	16.11%	+5.09%
Volatility (1Y) Calculated over the trailing 1-year period	23.27%	19.23%	+4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.82%	18.53%	-0.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.99%	20.66%	-0.67%

EMXC vs. PPA - Expense Ratio Comparison

EMXC has a 0.49% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

EMXC vs. PPA - Dividend Comparison

EMXC's dividend yield for the trailing twelve months is around 2.13%, more than PPA's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMXC iShares MSCI Emerging Markets ex China ETF	2.13%	2.82%	2.69%	1.83%	2.85%	1.78%	1.45%	3.25%	2.63%	0.99%	0.00%	0.00%
PPA Invesco Aerospace & Defense ETF	0.39%	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 EMXC and PPA in my portfolio?

EMXC and PPA have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMXC or PPA?

EMXC has higher volatility (12.57%) compared to PPA (6.71%). In terms of maximum drawdown, EMXC dropped -42.81% vs PPA's -57.37%.

Which ETF is better, EMXC or PPA?

On 5-year performance, PPA leads with 17.94% vs 11.46% for EMXC. On fees, EMXC is cheaper at 0.49% per year. On volatility, PPA has been the lower-risk option at 6.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMXC or PPA?

Over the 5-year period, PPA has performed better with a 17.94% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMXC or PPA?

EMXC is cheaper with a 0.49% expense ratio, compared with 0.58% for PPA.

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

EMXC has the higher dividend yield at 2.13%, compared with 0.39% for PPA.

What is the main difference between EMXC and PPA?

EMXC is categorized as Emerging Markets Equities, while PPA is Aerospace & Defense. EMXC tracks MSCI Emerging Markets ex China Index, while PPA tracks SPADE Defense Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.49% for EMXC and 0.58% for PPA.

Which has better risk-adjusted returns?

EMXC currently has the higher Sharpe Ratio (2.71 vs 1.32), 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.