PPA vs. PKB

Last updated Jun 13, 2026

PPA (Invesco Aerospace & Defense ETF) and PKB (Invesco Dynamic Building & Construction ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while PKB is a Building & Construction fund tracking the Dynamic Building & Construction Intellidex Index. Both are passively managed. Over the past 10 years, PPA returned 17.72%/yr vs 15.78%/yr for PKB. A 0.74 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.60%/yr for PKB.

Performance

PPA vs. PKB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aerospace & Defense ETF (PPA) and Invesco Dynamic Building & Construction ETF (PKB). 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 lower than PKB's 14.33% return. Over the past 10 years, PPA has outperformed PKB with an annualized return of 17.72%, while PKB has yielded a comparatively lower 15.78% annualized 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%

PKB

• 1D: 1.14%
• 1M: 1.78%
• YTD: 14.33%
• 6M: 10.23%
• 1Y: 34.86%
• 3Y*: 27.82%
• 5Y*: 16.59%
• 10Y*: 15.78%

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

PPA vs. PKB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPA Invesco Aerospace & Defense ETF	11.20%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%
PKB Invesco Dynamic Building & Construction ETF	14.33%	22.47%	20.24%	55.29%	-24.88%	32.96%	24.49%	40.15%	-31.11%	24.67%

Correlation

The correlation between PPA and PKB is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Oct 26, 2005	0.74

The correlation between PPA and PKB shifts across timeframes, from 0.61 (1 year) to 0.74 (all time), reflecting how their relationship changes across market environments.

PPA vs. PKB - Sectors Allocation Comparison

Sectors	PPA	PKB
Industrials	90.6%	47.2%
Technology	9.3%	-
Communication Services	0.1%	-
Financial Services	0.0%	0.1%
Basic Materials	-	29.0%
Consumer Cyclical	-	20.8%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	3.0%

Return for Risk

PPA vs. PKB — 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

PKB

PKB Risk / Return Rank: 48
PKB Sharpe Ratio Rank: 48
PKB Sortino Ratio Rank: 49
PKB Omega Ratio Rank: 43
PKB Calmar Ratio Rank: 52
PKB Martin Ratio Rank: 49

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. PKB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Invesco Dynamic Building & Construction ETF (PKB). 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	PKB	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.47	-0.03
Sortino ratio: Return per unit of downside risk	2.14	2.16	-0.01
Omega ratio: Gain probability vs. loss probability	1.25	1.25	0.00
Calmar ratio: Return relative to maximum drawdown	2.11	2.27	-0.17
Martin ratio: Return relative to average drawdown	5.94	7.21	-1.26

PPA vs. PKB - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.44, which is comparable to the PKB Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of PPA and PKB, 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. PKB - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, smaller than the maximum PKB drawdown of -65.21%. Use the drawdown chart below to compare losses from any high point for PPA and PKB.

Drawdown Indicators

	PPA	PKB	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-65.21%	+7.84%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-15.41%	+1.70%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-29.75%	+14.51%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-34.85%	+16.48%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	-52.29%	+8.37%
Current Drawdown Current decline from peak	-6.15%	-4.31%	-1.84%
Average Drawdown Average peak-to-trough decline	-9.18%	-15.75%	+6.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.85%	4.86%	-0.01%

Volatility

PPA vs. PKB - Volatility Comparison

Invesco Aerospace & Defense ETF (PPA) and Invesco Dynamic Building & Construction ETF (PKB) have volatilities of 8.91% and 8.73%, 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	PKB	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.91%	8.73%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	17.06%	18.69%	-1.63%
Volatility (1Y) Calculated over the trailing 1-year period	20.04%	23.78%	-3.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.70%	25.78%	-7.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	27.29%	-6.56%

PPA vs. PKB - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is lower than PKB's 0.60% expense ratio.

Dividends

PPA vs. PKB - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.38%, more than PKB's 0.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PKB Invesco Dynamic Building & Construction ETF	0.14%	0.14%	0.23%	0.33%	0.43%	0.25%	0.30%	0.37%	0.54%	0.17%	0.31%	0.11%
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 PKB in my portfolio?

PPA and PKB have a correlation of 0.61, 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 PKB?

PPA has higher volatility (8.91%) compared to PKB (8.73%). In terms of maximum drawdown, PPA dropped -57.37% vs PKB's -65.21%.

Which ETF is better, PPA or PKB?

On 10-year performance, PPA leads with 17.72% vs 15.78% for PKB. On fees, PPA is cheaper at 0.58% per year. On volatility, PKB has been the lower-risk option at 8.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or PKB?

Over the 10-year period, PPA has performed better with a 17.72% return vs 15.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or PKB?

PPA is cheaper with a 0.58% expense ratio, compared with 0.60% for PKB.

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

PPA has the higher dividend yield at 0.38%, compared with 0.14% for PKB.

What is the main difference between PPA and PKB?

PPA is categorized as Aerospace & Defense, while PKB is Building & Construction. PPA tracks SPADE Defense Index, while PKB tracks Dynamic Building & Construction Intellidex Index. Their fees differ too: 0.58% for PPA and 0.60% for PKB.

Which has better risk-adjusted returns?

PKB currently has the higher Sharpe Ratio (1.47 vs 1.44), 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.