PPA vs. QQQ
Compare and contrast key facts about Invesco Aerospace & Defense ETF (PPA) and Invesco QQQ (QQQ).
PPA and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PPA is a passively managed fund by Invesco that tracks the performance of the SPADE Defense Index. It was launched on Oct 26, 2005. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both PPA and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PPA or QQQ.
Performance
PPA vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, PPA achieves a 29.04% return, which is significantly higher than QQQ's 23.40% return. Over the past 10 years, PPA has underperformed QQQ with an annualized return of 14.33%, while QQQ has yielded a comparatively higher 18.08% annualized return.
PPA
29.04%
-1.07%
12.51%
37.38%
12.35%
14.33%
QQQ
23.40%
1.56%
10.75%
30.41%
20.90%
18.08%
Key characteristics
| PPA | QQQ | |
|---|---|---|
| Sharpe Ratio | 2.63 | 1.71 |
| Sortino Ratio | 3.51 | 2.29 |
| Omega Ratio | 1.48 | 1.31 |
| Calmar Ratio | 6.28 | 2.19 |
| Martin Ratio | 20.61 | 7.95 |
| Ulcer Index | 1.81% | 3.73% |
| Daily Std Dev | 14.13% | 17.38% |
| Max Drawdown | -57.37% | -82.98% |
| Current Drawdown | -4.83% | -2.13% |
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PPA vs. QQQ - Expense Ratio Comparison
PPA has a 0.61% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Correlation
The correlation between PPA and QQQ is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
PPA vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Invesco QQQ (QQQ). 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.
Dividends
PPA vs. QQQ - Dividend Comparison
PPA's dividend yield for the trailing twelve months is around 0.55%, less than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PPA Invesco Aerospace & Defense ETF | 0.55% | 0.67% | 0.83% | 0.59% | 0.88% | 0.95% | 0.90% | 0.67% | 1.70% | 1.41% | 0.62% | 1.26% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
PPA vs. QQQ - Drawdown Comparison
The maximum PPA drawdown since its inception was -57.37%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for PPA and QQQ. For additional features, visit the drawdowns tool.
Volatility
PPA vs. QQQ - Volatility Comparison
Invesco Aerospace & Defense ETF (PPA) has a higher volatility of 6.64% compared to Invesco QQQ (QQQ) at 5.66%. This indicates that PPA's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.