PFM vs. PPA

Last updated Jun 4, 2026

PFM (Invesco Dividend Achievers™ ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - PFM is a Large Cap Growth Equities fund tracking the NASDAQ US Broad Dividend Achievers Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, PFM returned 11.82%/yr vs 17.38%/yr for PPA. A 0.77 correlation means they provide meaningful diversification when combined. PFM charges 0.53%/yr vs 0.58%/yr for PPA.

Performance

PFM vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Dividend Achievers™ ETF (PFM) 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 investments are quite close, with PFM having a 8.18% return and PPA slightly higher at 8.54%. Over the past 10 years, PFM has underperformed PPA with an annualized return of 11.82%, while PPA has yielded a comparatively higher 17.38% annualized return.

PFM

• 1D: -0.23%
• 1M: 3.40%
• YTD: 8.18%
• 6M: 7.73%
• 1Y: 19.65%
• 3Y*: 16.31%
• 5Y*: 10.63%
• 10Y*: 11.82%

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)

PFM vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFM Invesco Dividend Achievers™ ETF	8.18%	14.00%	16.87%	11.40%	-6.22%	23.08%	9.53%	26.88%	-4.58%	17.65%
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 PFM and PPA is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Oct 27, 2005	0.77

Over the past year, the correlation between PFM and PPA has dropped to 0.52 - well below their long-term average of 0.77, suggesting their price drivers have been diverging.

PFM vs. PPA - Sectors Allocation Comparison

Sectors	PFM	PPA
Technology	24.7%	9.8%
Financial Services	18.5%	-
Healthcare	14.9%	-
Consumer Defensive	12.0%	-
Industrials	11.1%	90.1%
Energy	4.7%	-
Utilities	4.2%	-
Consumer Cyclical	4.0%	-
Basic Materials	3.0%	-
Real Estate	2.0%	-
Communication Services	1.1%	0.1%

Return for Risk

PFM vs. PPA — Risk / Return Rank

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

PFM

PFM Risk / Return Rank: 62
PFM Sharpe Ratio Rank: 61
PFM Sortino Ratio Rank: 66
PFM Omega Ratio Rank: 61
PFM Calmar Ratio Rank: 56
PFM Martin Ratio Rank: 63

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.

PFM vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Dividend Achievers™ ETF (PFM) 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.

	PFM	PPA	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.40	+0.68
Sortino ratio: Return per unit of downside risk	3.07	2.05	+1.02
Omega ratio: Gain probability vs. loss probability	1.38	1.24	+0.14
Calmar ratio: Return relative to maximum drawdown	2.78	1.95	+0.84
Martin ratio: Return relative to average drawdown	11.28	5.68	+5.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFM vs. PPA - Sharpe Ratio Comparison

The current PFM Sharpe Ratio is 2.09, which is higher than the PPA Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of PFM 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

	PFM	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.09	1.40	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.97	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.84	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.66	-0.13

Drawdowns

PFM vs. PPA - Drawdown Comparison

The maximum PFM drawdown since its inception was -53.21%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for PFM and PPA.

Drawdown Indicators

	PFM	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-53.21%	-57.37%	+4.16%
Max Drawdown (1Y) Largest decline over 1 year	-7.09%	-13.71%	+6.62%
Max Drawdown (3Y) Largest decline over 3 years	-14.50%	-15.24%	+0.74%
Max Drawdown (5Y) Largest decline over 5 years	-17.81%	-18.37%	+0.56%
Max Drawdown (10Y) Largest decline over 10 years	-32.22%	-43.92%	+11.70%
Current Drawdown Current decline from peak	-0.23%	-8.40%	+8.17%
Average Drawdown Average peak-to-trough decline	-6.94%	-9.18%	+2.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.75%	4.69%	-2.94%

Volatility

PFM vs. PPA - Volatility Comparison

The current volatility for Invesco Dividend Achievers™ ETF (PFM) is 2.04%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.73%. This indicates that PFM 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

	PFM	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.04%	6.73%	-4.69%
Volatility (6M) Calculated over the trailing 6-month period	7.13%	15.95%	-8.82%
Volatility (1Y) Calculated over the trailing 1-year period	9.47%	19.03%	-9.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.54%	18.49%	-4.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.21%	20.64%	-5.43%

PFM vs. PPA - Expense Ratio Comparison

PFM has a 0.53% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

PFM vs. PPA - Dividend Comparison

PFM's dividend yield for the trailing twelve months is around 1.33%, more than PPA's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFM Invesco Dividend Achievers™ ETF	1.33%	1.41%	1.58%	1.86%	1.95%	1.69%	1.92%	1.94%	2.27%	1.70%	2.56%	2.36%
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 PFM and PPA in my portfolio?

PFM and PPA have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFM or PPA?

PPA has higher volatility (6.73%) compared to PFM (2.04%). In terms of maximum drawdown, PFM dropped -53.21% vs PPA's -57.37%.

Which ETF is better, PFM or PPA?

On 10-year performance, PPA leads with 17.38% vs 11.82% for PFM. On fees, PFM is cheaper at 0.53% per year. On volatility, PFM has been the lower-risk option at 2.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFM or PPA?

Over the 10-year period, PPA has performed better with a 17.38% return vs 11.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFM or PPA?

PFM is cheaper with a 0.53% expense ratio, compared with 0.58% for PPA.

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

PFM has the higher dividend yield at 1.33%, compared with 0.39% for PPA.

What is the main difference between PFM and PPA?

PFM is categorized as Large Cap Growth Equities, while PPA is Aerospace & Defense. PFM tracks NASDAQ US Broad Dividend Achievers Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.53% for PFM and 0.58% for PPA.

Which has better risk-adjusted returns?

PFM currently has the higher Sharpe Ratio (2.09 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.