ITA vs. PPA

Last updated Aug 2, 2026

ITA (iShares U.S. Aerospace & Defense ETF) and PPA (Invesco Aerospace & Defense ETF) are both Aerospace & Defense funds - ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index while PPA tracks the SPADE Defense Index. Both are passively managed. Over the past 10 years, ITA returned 15.16%/yr vs 17.29%/yr for PPA. Their 0.96 correlation means they have historically moved very closely together. ITA charges 0.38%/yr vs 0.58%/yr for PPA.

Performance

ITA vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with ITA having a 11.78% return and PPA slightly lower at 11.49%. Over the past 10 years, ITA has underperformed PPA with an annualized return of 15.16%, while PPA has yielded a comparatively higher 17.29% annualized return.

ITA

• 1D: 0.64%
• 1M: -3.44%
• 6M: 3.27%
• YTD: 11.78%
• 1Y: 23.04%
• 3Y*: 27.67%
• 5Y*: 18.23%
• 10Y*: 15.16%
• ALL TIME*: 12.82%

PPA

• 1D: 1.05%
• 1M: -3.67%
• 6M: 0.02%
• YTD: 11.49%
• 1Y: 20.71%
• 3Y*: 27.42%
• 5Y*: 19.17%
• 10Y*: 17.29%
• ALL TIME*: 13.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ITA iShares U.S. Aerospace & Defense ETF	$175.85M	$163.51M	$181.04M
PPA Invesco Aerospace & Defense ETF	$33.38M	$30.87M	$36.33M

ITA vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ITA iShares U.S. Aerospace & Defense ETF	11.78%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%
PPA Invesco Aerospace & Defense ETF	11.49%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between ITA and PPA is 0.97 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.97
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.96

The correlation between ITA and PPA has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

ITA vs. PPA - Sectors Allocation Comparison

Sectors	ITA	PPA
Industrials	97.7%	88.1%
Basic Materials	2.1%	1.9%
Technology	0.1%	9.9%
Communication Services	-	0.2%
Consumer Cyclical	-	0.3%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.1%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

ITA vs. PPA — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ITA

ITA Risk / Return Rank: 40
ITA Sharpe Ratio Rank: 41
ITA Sortino Ratio Rank: 42
ITA Omega Ratio Rank: 38
ITA Calmar Ratio Rank: 41
ITA Martin Ratio Rank: 36

PPA

PPA Risk / Return Rank: 39
PPA Sharpe Ratio Rank: 39
PPA Sortino Ratio Rank: 40
PPA Omega Ratio Rank: 36
PPA Calmar Ratio Rank: 41
PPA Martin Ratio Rank: 37

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ITA vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense ETF (ITA) 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.

	ITA	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.01	0.96	+0.04
Sortino ratio: Return per unit of downside risk	1.54	1.49	+0.05
Omega ratio: Gain probability vs. loss probability	1.18	1.17	+0.01
Calmar ratio: Return relative to maximum drawdown	1.43	1.46	-0.03
Martin ratio: Return relative to average drawdown	3.61	3.72	-0.11

ITA vs. PPA - Sharpe Ratio Comparison

The current ITA Sharpe Ratio is 1.01, which is comparable to the PPA Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of ITA 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

ITA vs. PPA - Drawdown Comparison

The maximum ITA drawdown since its inception was -59.72%, roughly equal to the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for ITA and PPA.

Drawdown Indicators

	ITA	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-59.72%	-57.37%	-2.35%
Max Drawdown (1Y) Largest decline over 1 year	-15.82%	-13.71%	-2.11%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-15.24%	-0.58%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-18.37%	-0.35%
Max Drawdown (10Y) Largest decline over 10 years	-51.00%	-43.92%	-7.08%
Current Drawdown Current decline from peak	-4.43%	-5.91%	+1.48%
Average Drawdown Average peak-to-trough decline	-9.42%	-9.16%	-0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.25%	5.38%	+0.87%

Volatility

ITA vs. PPA - Volatility Comparison

iShares U.S. Aerospace & Defense ETF (ITA) has a higher volatility of 7.29% compared to Invesco Aerospace & Defense ETF (PPA) at 6.77%. This indicates that ITA'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

	ITA	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.29%	6.77%	+0.52%
Volatility (6M) Calculated over the trailing 6-month period	18.29%	16.84%	+1.45%
Volatility (1Y) Calculated over the trailing 1-year period	22.49%	20.85%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.25%	18.76%	+1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.29%	20.79%	+2.50%

ITA vs. PPA - Expense Ratio Comparison

ITA has a 0.38% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

ITA vs. PPA - Dividend Comparison

ITA's dividend yield for the trailing twelve months is around 0.44%, more than PPA's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.44%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
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 ITA and PPA in my portfolio?

With a correlation of 0.97, ITA and PPA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ITA or PPA?

ITA has higher volatility (7.29%) compared to PPA (6.77%). In terms of maximum drawdown, ITA dropped -59.72% vs PPA's -57.37%.

Which ETF is better, ITA or PPA?

On 10-year performance, PPA leads with 17.29% vs 15.16% for ITA. On fees, ITA is cheaper at 0.38% per year. On volatility, PPA has been the lower-risk option at 6.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITA or PPA?

Over the 10-year period, PPA has performed better with a 17.29% return vs 15.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITA or PPA?

ITA is cheaper with a 0.38% expense ratio, compared with 0.58% for PPA.

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

ITA has the higher dividend yield at 0.44%, compared with 0.37% for PPA.

What is the main difference between ITA and PPA?

ITA tracks Dow Jones U.S. Select Aerospace & Defense Index, while PPA tracks SPADE Defense Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.38% for ITA and 0.58% for PPA.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.01 vs 0.96), 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.