IGPT vs. PPA

Last updated Jun 4, 2026

IGPT (Invesco AI and Next Gen Software ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - IGPT is a Technology Equities fund tracking the STOXX World AC NexGen Software Development Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, IGPT returned 22.30%/yr vs 17.38%/yr for PPA. A 0.64 correlation means they provide meaningful diversification when combined. IGPT charges 0.60%/yr vs 0.58%/yr for PPA.

Performance

IGPT vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AI and Next Gen Software ETF (IGPT) 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, IGPT achieves a 72.49% return, which is significantly higher than PPA's 8.54% return. Over the past 10 years, IGPT has outperformed PPA with an annualized return of 22.30%, while PPA has yielded a comparatively lower 17.38% annualized return.

IGPT

• 1D: 0.39%
• 1M: 28.39%
• YTD: 72.49%
• 6M: 75.56%
• 1Y: 123.95%
• 3Y*: 43.05%
• 5Y*: 15.89%
• 10Y*: 22.30%

PPA

• 1D: -1.74%
• 1M: 3.19%
• YTD: 8.54%
• 6M: 13.46%
• 1Y: 26.57%
• 3Y*: 28.92%
• 5Y*: 17.82%
• 10Y*: 17.38%

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

IGPT vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGPT Invesco AI and Next Gen Software ETF	72.49%	31.55%	17.15%	27.29%	-27.73%	-11.79%	54.31%	35.06%	16.38%	34.60%
PPA Invesco Aerospace & Defense ETF	8.54%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between IGPT 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	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Oct 27, 2005	0.64

Over the past year, the correlation between IGPT and PPA has dropped to 0.41 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

IGPT vs. PPA - Sectors Allocation Comparison

Sectors	IGPT	PPA
Technology	73.9%	9.8%
Communication Services	15.6%	0.1%
Real Estate	3.9%	-
Healthcare	3.6%	-
Industrials	3.1%	90.1%
Financial Services	1.3%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

IGPT vs. PPA — Risk / Return Rank

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

IGPT

IGPT Risk / Return Rank: 94
IGPT Sharpe Ratio Rank: 96
IGPT Sortino Ratio Rank: 94
IGPT Omega Ratio Rank: 93
IGPT Calmar Ratio Rank: 94
IGPT Martin Ratio Rank: 95

PPA

PPA Risk / Return Rank: 37
PPA Sharpe Ratio Rank: 38
PPA Sortino Ratio Rank: 39
PPA Omega Ratio Rank: 35
PPA Calmar Ratio Rank: 38
PPA Martin Ratio Rank: 36

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.

IGPT vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AI and Next Gen Software ETF (IGPT) 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.

	IGPT	PPA	Difference
Sharpe ratio: Return per unit of total volatility	4.39	1.40	+2.99
Sortino ratio: Return per unit of downside risk	4.95	2.05	+2.90
Omega ratio: Gain probability vs. loss probability	1.67	1.24	+0.42
Calmar ratio: Return relative to maximum drawdown	7.47	1.95	+5.53
Martin ratio: Return relative to average drawdown	29.16	5.68	+23.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGPT vs. PPA - Sharpe Ratio Comparison

The current IGPT Sharpe Ratio is 4.39, which is higher than the PPA Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of IGPT 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

	IGPT	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.39	1.40	+2.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.58	0.97	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	0.84	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.66	-0.02

Drawdowns

IGPT vs. PPA - Drawdown Comparison

The maximum IGPT drawdown since its inception was -50.14%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for IGPT and PPA.

Drawdown Indicators

	IGPT	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-50.14%	-57.37%	+7.23%
Max Drawdown (1Y) Largest decline over 1 year	-16.68%	-13.71%	-2.97%
Max Drawdown (3Y) Largest decline over 3 years	-29.30%	-15.24%	-14.06%
Max Drawdown (5Y) Largest decline over 5 years	-44.87%	-18.37%	-26.50%
Max Drawdown (10Y) Largest decline over 10 years	-50.14%	-43.92%	-6.22%
Current Drawdown Current decline from peak	0.00%	-8.40%	+8.40%
Average Drawdown Average peak-to-trough decline	-11.96%	-9.18%	-2.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.27%	4.69%	-0.42%

Volatility

IGPT vs. PPA - Volatility Comparison

Invesco AI and Next Gen Software ETF (IGPT) has a higher volatility of 12.51% compared to Invesco Aerospace & Defense ETF (PPA) at 6.73%. This indicates that IGPT'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

	IGPT	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.51%	6.73%	+5.78%
Volatility (6M) Calculated over the trailing 6-month period	23.50%	15.95%	+7.55%
Volatility (1Y) Calculated over the trailing 1-year period	28.42%	19.03%	+9.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.66%	18.49%	+9.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.33%	20.64%	+5.69%

IGPT vs. PPA - Expense Ratio Comparison

IGPT has a 0.60% expense ratio, which is higher than PPA's 0.58% expense ratio.

Dividends

IGPT vs. PPA - Dividend Comparison

IGPT's dividend yield for the trailing twelve months is around 0.03%, less than PPA's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGPT Invesco AI and Next Gen Software ETF	0.03%	0.04%	0.00%	0.00%	1.41%	6.21%	0.04%	0.05%	0.00%	0.00%	0.03%	0.15%
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 IGPT and PPA in my portfolio?

IGPT 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, IGPT or PPA?

IGPT has higher volatility (12.51%) compared to PPA (6.73%). In terms of maximum drawdown, IGPT dropped -50.14% vs PPA's -57.37%.

Which ETF is better, IGPT or PPA?

On 10-year performance, IGPT leads with 22.30% vs 17.38% for PPA. On fees, PPA is cheaper at 0.58% per year. On volatility, PPA has been the lower-risk option at 6.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGPT or PPA?

Over the 10-year period, IGPT has performed better with a 22.30% return vs 17.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGPT or PPA?

PPA is cheaper with a 0.58% expense ratio, compared with 0.60% for IGPT.

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

PPA has the higher dividend yield at 0.39%, compared with 0.03% for IGPT.

What is the main difference between IGPT and PPA?

IGPT is categorized as Technology Equities, while PPA is Aerospace & Defense. IGPT tracks STOXX World AC NexGen Software Development Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.60% for IGPT and 0.58% for PPA.

Which has better risk-adjusted returns?

IGPT currently has the higher Sharpe Ratio (4.39 vs 1.40), 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.