PPA vs. DFEN

Last updated Jun 3, 2026

PPA (Invesco Aerospace & Defense ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - PPA is a Industrials Equities fund tracking the SPADE Defense Index, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%). Both are passively managed. Over the past 5 years, PPA returned 18.46%/yr vs 28.31%/yr for DFEN. With a 0.96 correlation, they move nearly in lockstep. PPA charges 0.61%/yr vs 0.99%/yr for DFEN.

Performance

PPA vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aerospace & Defense ETF (PPA) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PPA achieves a 10.46% return, which is significantly higher than DFEN's 7.03% return.

PPA

• 1D: -0.36%
• 1M: 4.46%
• YTD: 10.46%
• 6M: 16.02%
• 1Y: 29.93%
• 3Y*: 29.68%
• 5Y*: 18.46%
• 10Y*: 17.58%

DFEN

• 1D: -2.33%
• 1M: 15.05%
• YTD: 7.03%
• 6M: 27.80%
• 1Y: 70.44%
• 3Y*: 65.73%
• 5Y*: 28.31%
• 10Y*: —

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

PPA vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPA Invesco Aerospace & Defense ETF	10.46%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	21.33%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.03%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between PPA and DFEN is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since May 4, 2017	0.96

The correlation between PPA and DFEN has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

PPA vs. DFEN - Sectors Allocation Comparison

Sectors	PPA	DFEN
Industrials	90.1%	19.7%
Technology	9.8%	0.0%
Communication Services	0.1%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. DFEN — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 43
PPA Sharpe Ratio Rank: 45
PPA Sortino Ratio Rank: 46
PPA Omega Ratio Rank: 41
PPA Calmar Ratio Rank: 44
PPA Martin Ratio Rank: 41

DFEN

DFEN Risk / Return Rank: 32
DFEN Sharpe Ratio Rank: 31
DFEN Sortino Ratio Rank: 33
DFEN Omega Ratio Rank: 31
DFEN Calmar Ratio Rank: 35
DFEN Martin Ratio Rank: 29

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. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). 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	DFEN	Difference
Sharpe ratio Return per unit of total volatility	1.59	1.12	+0.46
Sortino ratio Return per unit of downside risk	2.29	1.75	+0.53
Omega ratio Gain probability vs. loss probability	1.27	1.21	+0.06
Calmar ratio Return relative to maximum drawdown	2.20	1.76	+0.45
Martin ratio Return relative to average drawdown	6.49	4.26	+2.23
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. DFEN - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.59, which is higher than the DFEN Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of PPA and DFEN, 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	DFEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.59	1.12	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.00	0.47	+0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.22	+0.44

Drawdowns

PPA vs. DFEN - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for PPA and DFEN.

Drawdown Indicators

	PPA	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-91.36%	+33.99%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-41.75%	+28.04%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-43.13%	+27.89%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-56.23%	+37.86%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	—	—
Current Drawdown Current decline from peak	-6.77%	-29.86%	+23.09%
Average Drawdown Average peak-to-trough decline	-9.18%	-45.27%	+36.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.66%	17.24%	-12.58%

Volatility

PPA vs. DFEN - Volatility Comparison

The current volatility for Invesco Aerospace & Defense ETF (PPA) is 6.47%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 21.97%. This indicates that PPA experiences smaller price fluctuations and is considered to be less risky than DFEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.47%	21.97%	-15.50%
Volatility (6M) Calculated over the trailing 6-month period	16.06%	53.56%	-37.50%
Volatility (1Y) Calculated over the trailing 1-year period	18.94%	63.04%	-44.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.48%	60.12%	-41.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.63%	71.48%	-50.85%

PPA vs. DFEN - Expense Ratio Comparison

PPA has a 0.61% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

PPA vs. DFEN - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.38%, less than DFEN's 8.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.34%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
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 PPA and DFEN in my portfolio?

With a correlation of 0.96, PPA and DFEN 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, PPA or DFEN?

DFEN has higher volatility (21.97%) compared to PPA (6.47%). In terms of maximum drawdown, PPA dropped -57.37% vs DFEN's -91.36%.

Which ETF is better, PPA or DFEN?

On 5-year performance, DFEN leads with 28.31% vs 18.46% for PPA. On fees, PPA is cheaper at 0.61% per year. On volatility, PPA has been the lower-risk option at 6.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or DFEN?

Over the 5-year period, DFEN has performed better with a 28.31% return vs 18.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or DFEN?

PPA is cheaper with a 0.61% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 8.34%, compared with 0.38% for PPA.

What is the main difference between PPA and DFEN?

PPA is categorized as Industrials Equities, while DFEN is Leveraged Equities. PPA tracks SPADE Defense Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: Invesco and Direxion. Their fees differ too: 0.61% for PPA and 0.99% for DFEN.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.59 vs 1.12), 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.