EWZ vs. PPA

Last updated Jun 14, 2026

EWZ (iShares MSCI Brazil ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - EWZ is a Latin America Equities fund tracking the MSCI Brazil 25/50 Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, EWZ returned 8.29%/yr vs 17.72%/yr for PPA. A 0.50 correlation means they provide meaningful diversification when combined. EWZ charges 0.59%/yr vs 0.58%/yr for PPA.

Performance

EWZ vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Brazil ETF (EWZ) 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, EWZ achieves a 10.48% return, which is significantly lower than PPA's 11.20% return. Over the past 10 years, EWZ has underperformed PPA with an annualized return of 8.29%, while PPA has yielded a comparatively higher 17.72% annualized return.

EWZ

• 1D: 0.83%
• 1M: -3.12%
• YTD: 10.48%
• 6M: 9.03%
• 1Y: 31.51%
• 3Y*: 9.47%
• 5Y*: 4.96%
• 10Y*: 8.29%

PPA

• 1D: -1.24%
• 1M: 5.80%
• YTD: 11.20%
• 6M: 13.03%
• 1Y: 27.97%
• 3Y*: 28.86%
• 5Y*: 18.41%
• 10Y*: 17.72%

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

EWZ vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWZ iShares MSCI Brazil ETF	10.48%	48.81%	-30.41%	32.62%	12.09%	-17.32%	-20.35%	27.67%	-2.52%	23.62%
PPA Invesco Aerospace & Defense ETF	11.20%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between EWZ and PPA is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Oct 26, 2005	0.50

The correlation between EWZ and PPA shifts across timeframes, from 0.34 (3 years) to 0.50 (all time), reflecting how their relationship changes across market environments.

EWZ vs. PPA - Sectors Allocation Comparison

Sectors	EWZ	PPA
Financial Services	33.4%	0.1%
Energy	16.7%	-
Basic Materials	15.3%	-
Utilities	12.8%	-
Industrials	11.0%	90.7%
Consumer Defensive	4.6%	-
Healthcare	2.3%	-
Communication Services	2.1%	0.1%
Consumer Cyclical	1.4%	-
Technology	0.4%	9.1%
Real Estate	-	-

Return for Risk

EWZ vs. PPA — Risk / Return Rank

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

EWZ

EWZ Risk / Return Rank: 38
EWZ Sharpe Ratio Rank: 40
EWZ Sortino Ratio Rank: 38
EWZ Omega Ratio Rank: 38
EWZ Calmar Ratio Rank: 37
EWZ Martin Ratio Rank: 37

PPA

PPA Risk / Return Rank: 46
PPA Sharpe Ratio Rank: 47
PPA Sortino Ratio Rank: 49
PPA Omega Ratio Rank: 43
PPA Calmar Ratio Rank: 48
PPA Martin Ratio Rank: 42

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.

EWZ vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Brazil ETF (EWZ) 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.

	EWZ	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.25	1.44	-0.19
Sortino ratio: Return per unit of downside risk	1.76	2.14	-0.39
Omega ratio: Gain probability vs. loss probability	1.22	1.25	-0.03
Calmar ratio: Return relative to maximum drawdown	1.64	2.11	-0.46
Martin ratio: Return relative to average drawdown	5.17	5.94	-0.77

EWZ vs. PPA - Sharpe Ratio Comparison

The current EWZ Sharpe Ratio is 1.25, which is comparable to the PPA Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of EWZ 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

EWZ vs. PPA - Drawdown Comparison

The maximum EWZ drawdown since its inception was -77.25%, which is greater than PPA's maximum drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for EWZ and PPA.

Drawdown Indicators

	EWZ	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-77.25%	-57.37%	-19.88%
Max Drawdown (1Y) Largest decline over 1 year	-19.27%	-13.71%	-5.56%
Max Drawdown (3Y) Largest decline over 3 years	-31.36%	-15.24%	-16.12%
Max Drawdown (5Y) Largest decline over 5 years	-32.24%	-18.37%	-13.87%
Max Drawdown (10Y) Largest decline over 10 years	-56.99%	-43.92%	-13.07%
Current Drawdown Current decline from peak	-23.06%	-6.15%	-16.91%
Average Drawdown Average peak-to-trough decline	-35.93%	-9.18%	-26.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.10%	4.85%	+1.25%

Volatility

EWZ vs. PPA - Volatility Comparison

The current volatility for iShares MSCI Brazil ETF (EWZ) is 7.35%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 8.91%. This indicates that EWZ 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

	EWZ	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	8.91%	-1.56%
Volatility (6M) Calculated over the trailing 6-month period	19.97%	17.06%	+2.91%
Volatility (1Y) Calculated over the trailing 1-year period	25.20%	20.04%	+5.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.70%	18.70%	+9.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.04%	20.73%	+13.31%

EWZ vs. PPA - Expense Ratio Comparison

EWZ has a 0.59% expense ratio, which is higher than PPA's 0.58% expense ratio.

Dividends

EWZ vs. PPA - Dividend Comparison

EWZ's dividend yield for the trailing twelve months is around 4.70%, more than PPA's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWZ iShares MSCI Brazil ETF	4.70%	5.19%	8.91%	5.66%	12.59%	9.87%	1.71%	2.54%	2.89%	1.71%	1.81%	4.08%
PPA Invesco Aerospace & Defense ETF	0.38%	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 EWZ and PPA in my portfolio?

EWZ and PPA have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWZ or PPA?

PPA has higher volatility (8.91%) compared to EWZ (7.35%). In terms of maximum drawdown, EWZ dropped -77.25% vs PPA's -57.37%.

Which ETF is better, EWZ or PPA?

On 10-year performance, PPA leads with 17.72% vs 8.29% for EWZ. On fees, PPA is cheaper at 0.58% per year. On volatility, EWZ has been the lower-risk option at 7.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWZ or PPA?

Over the 10-year period, PPA has performed better with a 17.72% return vs 8.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWZ or PPA?

PPA is cheaper with a 0.58% expense ratio, compared with 0.59% for EWZ.

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

EWZ has the higher dividend yield at 4.70%, compared with 0.38% for PPA.

What is the main difference between EWZ and PPA?

EWZ is categorized as Latin America Equities, while PPA is Aerospace & Defense. EWZ tracks MSCI Brazil 25/50 Index, while PPA tracks SPADE Defense Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.59% for EWZ and 0.58% for PPA.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.44 vs 1.25), 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.