PPA vs. IHI

Last updated Jun 9, 2026

PPA (Invesco Aerospace & Defense ETF) and IHI (iShares U.S. Medical Devices ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while IHI is a Health & Biotech Equities fund tracking the Dow Jones U.S. Select Medical Equipment Index. Both are passively managed. Over the past 10 years, PPA returned 17.28%/yr vs 8.79%/yr for IHI. A 0.63 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.43%/yr for IHI.

Performance

PPA vs. IHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aerospace & Defense ETF (PPA) and iShares U.S. Medical Devices ETF (IHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PPA achieves a 8.41% return, which is significantly higher than IHI's -19.71% return. Over the past 10 years, PPA has outperformed IHI with an annualized return of 17.28%, while IHI has yielded a comparatively lower 8.79% annualized return.

PPA

• 1D: -0.43%
• 1M: 1.28%
• YTD: 8.41%
• 6M: 11.71%
• 1Y: 25.14%
• 3Y*: 28.15%
• 5Y*: 17.94%
• 10Y*: 17.28%

IHI

• 1D: -0.44%
• 1M: 1.73%
• YTD: -19.71%
• 6M: -19.80%
• 1Y: -19.39%
• 3Y*: -1.88%
• 5Y*: -2.08%
• 10Y*: 8.79%

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

PPA vs. IHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPA Invesco Aerospace & Defense ETF	8.41%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%
IHI iShares U.S. Medical Devices ETF	-19.71%	6.88%	8.62%	3.24%	-19.80%	21.03%	24.17%	32.75%	15.45%	30.81%

Correlation

The correlation between PPA and IHI is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.63

Over the past year, the correlation between PPA and IHI has dropped to 0.31 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

PPA vs. IHI - Sectors Allocation Comparison

Sectors	PPA	IHI
Industrials	90.6%	0.2%
Technology	9.3%	-
Communication Services	0.1%	-
Financial Services	0.0%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	100.0%
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. IHI — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 40
PPA Sharpe Ratio Rank: 41
PPA Sortino Ratio Rank: 42
PPA Omega Ratio Rank: 38
PPA Calmar Ratio Rank: 41
PPA Martin Ratio Rank: 37

IHI

IHI Risk / Return Rank: 1
IHI Sharpe Ratio Rank: 1
IHI Sortino Ratio Rank: 1
IHI Omega Ratio Rank: 1
IHI Calmar Ratio Rank: 3
IHI Martin Ratio Rank: 0

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. IHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and iShares U.S. Medical Devices ETF (IHI). 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	IHI	Difference
Sharpe ratio: Return per unit of total volatility	1.32	-1.15	+2.46
Sortino ratio: Return per unit of downside risk	1.94	-1.60	+3.54
Omega ratio: Gain probability vs. loss probability	1.23	0.82	+0.40
Calmar ratio: Return relative to maximum drawdown	1.84	-0.75	+2.59
Martin ratio: Return relative to average drawdown	5.29	-1.85	+7.15
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. IHI - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.32, which is higher than the IHI Sharpe Ratio of -1.15. The chart below compares the historical Sharpe Ratios of PPA and IHI, 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	IHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.32	-1.15	+2.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	-0.11	+1.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.45	+0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.47	+0.19

Drawdowns

PPA vs. IHI - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, which is greater than IHI's maximum drawdown of -49.65%. Use the drawdown chart below to compare losses from any high point for PPA and IHI.

Drawdown Indicators

	PPA	IHI	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-49.65%	-7.72%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-26.11%	+12.40%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-26.64%	+11.40%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-33.12%	+14.75%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	-33.25%	-10.67%
Current Drawdown Current decline from peak	-8.50%	-24.19%	+15.69%
Average Drawdown Average peak-to-trough decline	-9.18%	-8.33%	-0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.76%	10.48%	-5.72%

Volatility

PPA vs. IHI - Volatility Comparison

Invesco Aerospace & Defense ETF (PPA) and iShares U.S. Medical Devices ETF (IHI) have volatilities of 6.71% and 7.01%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	IHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	7.01%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	16.11%	13.06%	+3.05%
Volatility (1Y) Calculated over the trailing 1-year period	19.23%	17.00%	+2.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.53%	18.99%	-0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.66%	19.80%	+0.86%

PPA vs. IHI - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is higher than IHI's 0.43% expense ratio.

Dividends

PPA vs. IHI - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.39%, less than IHI's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHI iShares U.S. Medical Devices ETF	0.45%	0.34%	0.46%	0.53%	0.45%	0.25%	0.25%	0.33%	0.26%	0.37%	0.55%	1.28%
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 IHI in my portfolio?

PPA and IHI have a correlation of 0.31, 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 IHI?

IHI has higher volatility (7.01%) compared to PPA (6.71%). In terms of maximum drawdown, PPA dropped -57.37% vs IHI's -49.65%.

Which ETF is better, PPA or IHI?

On 10-year performance, PPA leads with 17.28% vs 8.79% for IHI. On fees, IHI is cheaper at 0.43% per year. On volatility, PPA has been the lower-risk option at 6.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or IHI?

Over the 10-year period, PPA has performed better with a 17.28% return vs 8.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or IHI?

IHI is cheaper with a 0.43% expense ratio, compared with 0.58% for PPA.

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

IHI has the higher dividend yield at 0.45%, compared with 0.39% for PPA.

What is the main difference between PPA and IHI?

PPA is categorized as Aerospace & Defense, while IHI is Health & Biotech Equities. PPA tracks SPADE Defense Index, while IHI tracks Dow Jones U.S. Select Medical Equipment Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.58% for PPA and 0.43% for IHI.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.32 vs -1.15), 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.