PPA vs. NERD

Last updated Jun 13, 2026

PPA (Invesco Aerospace & Defense ETF) and NERD (Roundhill Video Games ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while NERD is a Gaming fund actively managed by Roundhill Investments. PPA is passively managed, while NERD is actively managed. Over the past 5 years, PPA returned 18.41%/yr vs -8.51%/yr for NERD. At a 0.43 correlation, their price movements are largely independent. PPA charges 0.58%/yr vs 0.50%/yr for NERD.

Performance

PPA vs. NERD - Performance Comparison

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

Returns By Period

In the year-to-date period, PPA achieves a 11.20% return, which is significantly higher than NERD's -18.01% return.

PPA

• 1D: -1.24%
• 1M: 2.73%
• YTD: 11.20%
• 6M: 13.03%
• 1Y: 28.73%
• 3Y*: 28.86%
• 5Y*: 18.41%
• 10Y*: 17.72%

NERD

• 1D: -0.41%
• 1M: -4.10%
• YTD: -18.01%
• 6M: -19.37%
• 1Y: -21.50%
• 3Y*: 9.13%
• 5Y*: -8.51%
• 10Y*: —

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

PPA vs. NERD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PPA Invesco Aerospace & Defense ETF	11.20%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	12.73%
NERD Roundhill Video Games ETF	-18.01%	23.14%	28.52%	12.94%	-43.30%	-17.57%	89.66%	8.14%

Correlation

The correlation between PPA and NERD 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	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (All Time) Calculated using the full available price history since Jun 4, 2019	0.43

PPA vs. NERD - Sectors Allocation Comparison

Sectors	PPA	NERD
Industrials	90.6%	1.2%
Technology	9.3%	3.9%
Communication Services	0.1%	91.1%
Financial Services	0.0%	0.0%
Basic Materials	-	-
Consumer Cyclical	-	3.9%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. NERD — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 46
PPA Sharpe Ratio Rank: 47
PPA Sortino Ratio Rank: 49
PPA Omega Ratio Rank: 43
PPA Calmar Ratio Rank: 48
PPA Martin Ratio Rank: 42

NERD

NERD Risk / Return Rank: 2
NERD Sharpe Ratio Rank: 1
NERD Sortino Ratio Rank: 2
NERD Omega Ratio Rank: 2
NERD Calmar Ratio Rank: 4
NERD Martin Ratio Rank: 3

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. NERD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Roundhill Video Games ETF (NERD). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PPA	NERD	Difference
Sharpe ratio: Return per unit of total volatility	1.44	-1.09	+2.53
Sortino ratio: Return per unit of downside risk	2.14	-1.50	+3.64
Omega ratio: Gain probability vs. loss probability	1.25	0.83	+0.42
Calmar ratio: Return relative to maximum drawdown	2.11	-0.69	+2.80
Martin ratio: Return relative to average drawdown	5.94	-1.23	+7.17

PPA vs. NERD - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.44, which is higher than the NERD Sharpe Ratio of -1.09. The chart below compares the historical Sharpe Ratios of PPA and NERD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PPA vs. NERD - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, smaller than the maximum NERD drawdown of -65.58%. Use the drawdown chart below to compare losses from any high point for PPA and NERD.

Drawdown Indicators

	PPA	NERD	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-65.58%	+8.21%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-31.19%	+17.48%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-31.19%	+15.95%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-58.92%	+40.55%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	—	—
Current Drawdown Current decline from peak	-6.15%	-46.82%	+40.67%
Average Drawdown Average peak-to-trough decline	-9.18%	-35.92%	+26.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.85%	17.50%	-12.65%

Volatility

PPA vs. NERD - Volatility Comparison

Invesco Aerospace & Defense ETF (PPA) has a higher volatility of 8.91% compared to Roundhill Video Games ETF (NERD) at 4.21%. This indicates that PPA's price experiences larger fluctuations and is considered to be riskier than NERD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	NERD	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.91%	4.21%	+4.70%
Volatility (6M) Calculated over the trailing 6-month period	17.06%	15.00%	+2.06%
Volatility (1Y) Calculated over the trailing 1-year period	20.04%	19.77%	+0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.70%	24.51%	-5.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	25.49%	-4.76%

PPA vs. NERD - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is higher than NERD's 0.50% expense ratio.

Dividends

PPA vs. NERD - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.38%, less than NERD's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NERD Roundhill Video Games ETF	0.77%	0.63%	1.74%	1.07%	0.69%	0.02%	1.05%	0.31%	0.00%	0.00%	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 NERD in my portfolio?

PPA and NERD 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, PPA or NERD?

PPA has higher volatility (8.91%) compared to NERD (4.21%). In terms of maximum drawdown, PPA dropped -57.37% vs NERD's -65.58%.

Which ETF is better, PPA or NERD?

On 5-year performance, PPA leads with 18.41% vs -8.51% for NERD. On fees, NERD is cheaper at 0.50% per year. On volatility, NERD has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or NERD?

Over the 5-year period, PPA has performed better with a 18.41% return vs -8.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or NERD?

NERD is cheaper with a 0.50% expense ratio, compared with 0.58% for PPA.

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

NERD has the higher dividend yield at 0.77%, compared with 0.38% for PPA.

What is the main difference between PPA and NERD?

PPA is categorized as Aerospace & Defense, while NERD is Gaming. They also come from different issuers: Invesco and Roundhill Investments. Their fees differ too: 0.58% for PPA and 0.50% for NERD.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.44 vs -1.09), 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.