PPA vs. DEF

Last updated Jun 4, 2026

PPA (Invesco Aerospace & Defense ETF) and DEF (Invesco Defensive Equity ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while DEF is a Large Cap Growth Equities fund tracking the Invesco Defensive Equity Index. Both are passively managed. Over the past 10 years, PPA returned 17.38%/yr vs 10.28%/yr for DEF. A 0.71 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.53%/yr for DEF.

Performance

PPA vs. DEF - Performance Comparison

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

Returns By Period

In the year-to-date period, PPA achieves a 8.54% return, which is significantly higher than DEF's -2.29% return. Over the past 10 years, PPA has outperformed DEF with an annualized return of 17.38%, while DEF has yielded a comparatively lower 10.28% annualized return.

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%

DEF

• 1D: 0.04%
• 1M: 0.44%
• YTD: -2.29%
• 6M: -2.55%
• 1Y: 4.21%
• 3Y*: 10.86%
• 5Y*: 7.41%
• 10Y*: 10.28%

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

PPA vs. DEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
DEF Invesco Defensive Equity ETF	-2.29%	11.71%	13.18%	10.58%	-7.67%	24.93%	7.61%	27.98%	-3.96%	21.52%

Correlation

The correlation between PPA and DEF is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Dec 18, 2006	0.71

The correlation between PPA and DEF shifts across timeframes, from 0.53 (1 year) to 0.71 (all time), reflecting how their relationship changes across market environments.

PPA vs. DEF - Sectors Allocation Comparison

Sectors	PPA	DEF
Industrials	90.1%	15.6%
Technology	9.8%	12.1%
Communication Services	0.1%	4.7%
Basic Materials	-	2.1%
Consumer Cyclical	-	10.1%
Consumer Defensive	-	12.9%
Energy	-	1.0%
Financial Services	-	16.1%
Healthcare	-	16.8%
Real Estate	-	3.8%
Utilities	-	4.8%

Return for Risk

PPA vs. DEF — Risk / Return Rank

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

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

DEF

DEF Risk / Return Rank: 14
DEF Sharpe Ratio Rank: 14
DEF Sortino Ratio Rank: 13
DEF Omega Ratio Rank: 13
DEF Calmar Ratio Rank: 14
DEF Martin Ratio Rank: 15

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.

PPA vs. DEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Invesco Defensive Equity ETF (DEF). 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.

	PPA	DEF	Difference
Sharpe ratio: Return per unit of total volatility	1.40	0.36	+1.04
Sortino ratio: Return per unit of downside risk	2.05	0.61	+1.44
Omega ratio: Gain probability vs. loss probability	1.24	1.07	+0.17
Calmar ratio: Return relative to maximum drawdown	1.95	0.43	+1.51
Martin ratio: Return relative to average drawdown	5.68	1.18	+4.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PPA vs. DEF - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.40, which is higher than the DEF Sharpe Ratio of 0.36. The chart below compares the historical Sharpe Ratios of PPA and DEF, 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

	PPA	DEF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	0.36	+1.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	0.54	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.64	+0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.54	+0.12

Drawdowns

PPA vs. DEF - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, which is greater than DEF's maximum drawdown of -47.91%. Use the drawdown chart below to compare losses from any high point for PPA and DEF.

Drawdown Indicators

	PPA	DEF	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-47.91%	-9.46%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-9.76%	-3.95%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-15.00%	-0.24%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-17.75%	-0.62%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	-36.53%	-7.39%
Current Drawdown Current decline from peak	-8.40%	-6.44%	-1.96%
Average Drawdown Average peak-to-trough decline	-9.18%	-6.24%	-2.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.69%	3.59%	+1.10%

Volatility

PPA vs. DEF - Volatility Comparison

Invesco Aerospace & Defense ETF (PPA) has a higher volatility of 6.73% compared to Invesco Defensive Equity ETF (DEF) at 3.12%. This indicates that PPA's price experiences larger fluctuations and is considered to be riskier than DEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	DEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	3.12%	+3.61%
Volatility (6M) Calculated over the trailing 6-month period	15.95%	8.80%	+7.15%
Volatility (1Y) Calculated over the trailing 1-year period	19.03%	11.73%	+7.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.49%	13.92%	+4.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.64%	16.05%	+4.59%

PPA vs. DEF - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is higher than DEF's 0.53% expense ratio.

Dividends

PPA vs. DEF - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.39%, less than DEF's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEF Invesco Defensive Equity ETF	0.96%	0.94%	0.79%	1.60%	1.48%	1.06%	1.34%	1.16%	1.39%	1.63%	2.18%	3.31%
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 PPA and DEF in my portfolio?

PPA and DEF have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PPA or DEF?

PPA has higher volatility (6.73%) compared to DEF (3.12%). In terms of maximum drawdown, PPA dropped -57.37% vs DEF's -47.91%.

Which ETF is better, PPA or DEF?

On 10-year performance, PPA leads with 17.38% vs 10.28% for DEF. On fees, DEF is cheaper at 0.53% per year. On volatility, DEF has been the lower-risk option at 3.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or DEF?

Over the 10-year period, PPA has performed better with a 17.38% return vs 10.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or DEF?

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

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

DEF has the higher dividend yield at 0.96%, compared with 0.39% for PPA.

What is the main difference between PPA and DEF?

PPA is categorized as Aerospace & Defense, while DEF is Large Cap Growth Equities. PPA tracks SPADE Defense Index, while DEF tracks Invesco Defensive Equity Index. Their fees differ too: 0.58% for PPA and 0.53% for DEF.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.40 vs 0.36), 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.