PPA vs. SHLD

Last updated Jul 15, 2026

PPA (Invesco Aerospace & Defense ETF) and SHLD (Global X Defense Tech ETF) are both Aerospace & Defense funds - PPA tracks the SPADE Defense Index while SHLD tracks the Global X Defense Tech Index. Both are passively managed. Over the past year, PPA returned 18.74% vs -0.98% for SHLD. A 0.77 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.50%/yr for SHLD.

Performance

PPA vs. SHLD - Performance Comparison

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

Returns By Period

In the year-to-date period, PPA achieves a 9.74% return, which is significantly higher than SHLD's -6.76% return.

PPA

• 1D: 0.18%
• 1M: -1.32%
• 6M: -1.96%
• YTD: 9.74%
• 1Y: 18.74%
• 3Y*: 27.42%
• 5Y*: 19.09%
• 10Y*: 17.18%

SHLD

• 1D: -0.41%
• 1M: -5.34%
• 6M: -20.90%
• YTD: -6.76%
• 1Y: -0.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PPA vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PPA Invesco Aerospace & Defense ETF	9.74%	37.15%	25.28%	12.83%
SHLD Global X Defense Tech ETF	-6.76%	74.16%	35.03%	12.89%

Correlation

The correlation between PPA and SHLD is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.77

The correlation between PPA and SHLD has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.

PPA vs. SHLD - Sectors Allocation Comparison

Sectors	PPA	SHLD
Industrials	90.4%	87.8%
Technology	9.2%	12.2%
Consumer Cyclical	0.3%	-
Communication Services	0.1%	-
Financial Services	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. SHLD — Risk / Return Rank

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

PPA

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

SHLD

SHLD Risk / Return Rank: 9
SHLD Sharpe Ratio Rank: 9
SHLD Sortino Ratio Rank: 9
SHLD Omega Ratio Rank: 9
SHLD Calmar Ratio Rank: 9
SHLD Martin Ratio Rank: 9

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	0.92	-0.04	+0.96
Sortino ratio: Return per unit of downside risk	1.46	0.13	+1.34
Omega ratio: Gain probability vs. loss probability	1.17	1.01	+0.15
Calmar ratio: Return relative to maximum drawdown	1.37	-0.04	+1.41
Martin ratio: Return relative to average drawdown	3.67	-0.10	+3.77

PPA vs. SHLD - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 0.92, which is higher than the SHLD Sharpe Ratio of -0.04. The chart below compares the historical Sharpe Ratios of PPA and SHLD, 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. SHLD - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, which is greater than SHLD's maximum drawdown of -25.40%. Use the drawdown chart below to compare losses from any high point for PPA and SHLD.

Drawdown Indicators

	PPA	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-25.40%	-31.97%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-25.40%	+11.69%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	—	—
Current Drawdown Current decline from peak	-7.39%	-22.57%	+15.18%
Average Drawdown Average peak-to-trough decline	-9.17%	-3.85%	-5.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.12%	10.09%	-4.97%

Volatility

PPA vs. SHLD - Volatility Comparison

The current volatility for Invesco Aerospace & Defense ETF (PPA) is 5.40%, while Global X Defense Tech ETF (SHLD) has a volatility of 8.48%. This indicates that PPA experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.40%	8.48%	-3.08%
Volatility (6M) Calculated over the trailing 6-month period	16.51%	19.87%	-3.36%
Volatility (1Y) Calculated over the trailing 1-year period	20.44%	25.18%	-4.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.75%	21.56%	-2.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.74%	21.56%	-0.82%

PPA vs. SHLD - Expense Ratio Comparison

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

Dividends

PPA vs. SHLD - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.37%, less than SHLD's 0.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPA Invesco Aerospace & Defense ETF	0.37%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%
SHLD Global X Defense Tech ETF	0.70%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PPA and SHLD in my portfolio?

PPA and SHLD have a correlation of 0.82, 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 SHLD?

SHLD has higher volatility (8.48%) compared to PPA (5.40%). In terms of maximum drawdown, PPA dropped -57.37% vs SHLD's -25.40%.

Which ETF is better, PPA or SHLD?

On 1-year performance, PPA leads with 18.74% vs -0.98% for SHLD. On fees, SHLD is cheaper at 0.50% per year. On volatility, PPA has been the lower-risk option at 5.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or SHLD?

Over the 1-year period, PPA has performed better with a 18.74% return vs -0.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or SHLD?

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

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

SHLD has the higher dividend yield at 0.70%, compared with 0.37% for PPA.

What is the main difference between PPA and SHLD?

PPA tracks SPADE Defense Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: Invesco and Global X. Their fees differ too: 0.58% for PPA and 0.50% for SHLD.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (0.92 vs -0.04), 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.