ITA vs. PPA
Compare and contrast key facts about iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA).
ITA and PPA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ITA is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Aerospace & Defense Index. It was launched on May 5, 2006. PPA is a passively managed fund by Invesco that tracks the performance of the SPADE Defense Index. It was launched on Oct 26, 2005. Both ITA and PPA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ITA or PPA.
Key characteristics
| ITA | PPA | |
|---|---|---|
| YTD Return | 2.52% | 9.62% |
| 1Y Return | 15.18% | 27.21% |
| 3Y Return (Ann) | 7.74% | 11.36% |
| 5Y Return (Ann) | 5.59% | 11.50% |
| 10Y Return (Ann) | 10.38% | 13.32% |
| Sharpe Ratio | 1.23 | 2.27 |
| Daily Std Dev | 13.68% | 12.86% |
| Max Drawdown | -59.72% | -57.37% |
| Current Drawdown | -1.82% | -0.79% |
Correlation
The correlation between ITA and PPA is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ITA vs. PPA - Performance Comparison
In the year-to-date period, ITA achieves a 2.52% return, which is significantly lower than PPA's 9.62% return. Over the past 10 years, ITA has underperformed PPA with an annualized return of 10.38%, while PPA has yielded a comparatively higher 13.32% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ITA vs. PPA - Expense Ratio Comparison
ITA has a 0.42% expense ratio, which is lower than PPA's 0.61% expense ratio.
Risk-Adjusted Performance
ITA vs. PPA - Risk-Adjusted Performance 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.
Dividends
ITA vs. PPA - Dividend Comparison
ITA's dividend yield for the trailing twelve months is around 0.90%, more than PPA's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITA iShares U.S. Aerospace & Defense ETF | 0.90% | 0.93% | 0.95% | 0.82% | 1.07% | 1.53% | 1.13% | 0.91% | 1.07% | 1.03% | 1.20% | 1.13% |
PPA Invesco Aerospace & Defense ETF | 0.62% | 0.67% | 0.83% | 0.59% | 0.88% | 0.95% | 0.90% | 0.67% | 1.70% | 1.41% | 0.62% | 1.26% |
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. For additional features, visit the drawdowns tool.
Volatility
ITA vs. PPA - Volatility Comparison
The current volatility for iShares U.S. Aerospace & Defense ETF (ITA) is 2.62%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 3.30%. This indicates that ITA 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.