PHDG vs. PPA

Last updated Jun 5, 2026

PHDG (Invesco S&P 500 Downside Hedged ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - PHDG is a Equity Hedged fund tracking the S&P 500 Dynamic VEQTOR Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, PHDG returned 7.32%/yr vs 17.53%/yr for PPA. At a 0.47 correlation, their price movements are largely independent. PHDG charges 0.39%/yr vs 0.58%/yr for PPA.

Performance

PHDG vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Downside Hedged ETF (PHDG) 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, PHDG achieves a 15.43% return, which is significantly higher than PPA's 10.82% return. Over the past 10 years, PHDG has underperformed PPA with an annualized return of 7.32%, while PPA has yielded a comparatively higher 17.53% annualized return.

PHDG

• 1D: 1.44%
• 1M: 5.27%
• YTD: 15.43%
• 6M: 13.92%
• 1Y: 26.83%
• 3Y*: 11.64%
• 5Y*: 5.75%
• 10Y*: 7.32%

PPA

• 1D: 2.10%
• 1M: 5.79%
• YTD: 10.82%
• 6M: 14.31%
• 1Y: 28.82%
• 3Y*: 30.12%
• 5Y*: 18.31%
• 10Y*: 17.53%

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

PHDG vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PHDG Invesco S&P 500 Downside Hedged ETF	15.43%	2.72%	10.95%	8.18%	-14.09%	15.67%	18.97%	8.57%	-2.44%	15.89%
PPA Invesco Aerospace & Defense ETF	10.82%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between PHDG and PPA is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Dec 7, 2012	0.47

The correlation between PHDG and PPA shifts across timeframes, from 0.37 (3 years) to 0.47 (all time), reflecting how their relationship changes across market environments.

PHDG vs. PPA - Sectors Allocation Comparison

Sectors	PHDG	PPA
Technology	35.1%	9.8%
Financial Services	11.9%	-
Communication Services	11.0%	0.1%
Consumer Cyclical	10.1%	-
Healthcare	8.7%	-
Industrials	8.3%	90.1%
Consumer Defensive	5.0%	-
Energy	3.6%	-
Utilities	2.4%	-
Real Estate	1.9%	-
Basic Materials	1.8%	-

Return for Risk

PHDG vs. PPA — Risk / Return Rank

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

PHDG

PHDG Risk / Return Rank: 92
PHDG Sharpe Ratio Rank: 90
PHDG Sortino Ratio Rank: 92
PHDG Omega Ratio Rank: 89
PHDG Calmar Ratio Rank: 94
PHDG Martin Ratio Rank: 94

PPA

PPA Risk / Return Rank: 43
PPA Sharpe Ratio Rank: 44
PPA Sortino Ratio Rank: 45
PPA Omega Ratio Rank: 41
PPA Calmar Ratio Rank: 44
PPA Martin Ratio Rank: 40

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.

PHDG vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Downside Hedged ETF (PHDG) 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.

	PHDG	PPA	Difference
Sharpe ratio: Return per unit of total volatility	3.03	1.51	+1.51
Sortino ratio: Return per unit of downside risk	4.47	2.20	+2.27
Omega ratio: Gain probability vs. loss probability	1.56	1.26	+0.30
Calmar ratio: Return relative to maximum drawdown	7.65	2.11	+5.53
Martin ratio: Return relative to average drawdown	28.46	6.14	+22.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PHDG vs. PPA - Sharpe Ratio Comparison

The current PHDG Sharpe Ratio is 3.03, which is higher than the PPA Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of PHDG 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

	PHDG	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.03	1.51	+1.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.99	-0.47
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	0.85	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.66	-0.12

Drawdowns

PHDG vs. PPA - Drawdown Comparison

The maximum PHDG drawdown since its inception was -17.70%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for PHDG and PPA.

Drawdown Indicators

	PHDG	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-17.70%	-57.37%	+39.67%
Max Drawdown (1Y) Largest decline over 1 year	-3.52%	-13.71%	+10.19%
Max Drawdown (3Y) Largest decline over 3 years	-14.78%	-15.24%	+0.46%
Max Drawdown (5Y) Largest decline over 5 years	-17.06%	-18.37%	+1.31%
Max Drawdown (10Y) Largest decline over 10 years	-17.06%	-43.92%	+26.86%
Current Drawdown Current decline from peak	0.00%	-6.47%	+6.47%
Average Drawdown Average peak-to-trough decline	-6.24%	-9.18%	+2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	4.70%	-3.75%

Volatility

PHDG vs. PPA - Volatility Comparison

The current volatility for Invesco S&P 500 Downside Hedged ETF (PHDG) is 3.19%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.97%. This indicates that PHDG 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

	PHDG	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.19%	6.97%	-3.78%
Volatility (6M) Calculated over the trailing 6-month period	6.77%	16.05%	-9.28%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	19.12%	-10.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.94%	18.51%	-7.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.93%	20.64%	-8.71%

PHDG vs. PPA - Expense Ratio Comparison

PHDG has a 0.39% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

PHDG vs. PPA - Dividend Comparison

PHDG's dividend yield for the trailing twelve months is around 1.84%, more than PPA's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHDG Invesco S&P 500 Downside Hedged ETF	1.84%	2.10%	1.94%	1.93%	1.35%	0.44%	0.63%	1.80%	1.56%	1.83%	2.29%	1.64%
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 PHDG and PPA in my portfolio?

PHDG and PPA have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PHDG or PPA?

PPA has higher volatility (6.97%) compared to PHDG (3.19%). In terms of maximum drawdown, PHDG dropped -17.70% vs PPA's -57.37%.

Which ETF is better, PHDG or PPA?

On 10-year performance, PPA leads with 17.53% vs 7.32% for PHDG. On fees, PHDG is cheaper at 0.39% per year. On volatility, PHDG has been the lower-risk option at 3.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHDG or PPA?

Over the 10-year period, PPA has performed better with a 17.53% return vs 7.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHDG or PPA?

PHDG is cheaper with a 0.39% expense ratio, compared with 0.58% for PPA.

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

PHDG has the higher dividend yield at 1.84%, compared with 0.38% for PPA.

What is the main difference between PHDG and PPA?

PHDG is categorized as Equity Hedged, while PPA is Aerospace & Defense. PHDG tracks S&P 500 Dynamic VEQTOR Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.39% for PHDG and 0.58% for PPA.

Which has better risk-adjusted returns?

PHDG currently has the higher Sharpe Ratio (3.03 vs 1.51), 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.