PPA vs. SPY

Last updated Jun 24, 2026

PPA (Invesco Aerospace & Defense ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, PPA returned 17.79%/yr vs 15.53%/yr for SPY. A 0.78 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.09%/yr for SPY.

Performance

PPA vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aerospace & Defense ETF (PPA) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PPA achieves a 9.76% return, which is significantly higher than SPY's 8.15% return. Over the past 10 years, PPA has outperformed SPY with an annualized return of 17.79%, while SPY has yielded a comparatively lower 15.53% annualized return.

PPA

• 1D: -0.53%
• 1M: 0.95%
• YTD: 9.76%
• 6M: 7.56%
• 1Y: 26.02%
• 3Y*: 28.78%
• 5Y*: 18.41%
• 10Y*: 17.79%

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

PPA vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPA Invesco Aerospace & Defense ETF	9.76%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between PPA and SPY is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Oct 26, 2005	0.78

Over the past year, the correlation between PPA and SPY has dropped to 0.56 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

PPA vs. SPY - Sectors Allocation Comparison

Sectors	PPA	SPY
Industrials	90.6%	7.8%
Technology	9.2%	39.0%
Communication Services	0.1%	10.6%
Financial Services	0.1%	11.1%
Basic Materials	-	1.7%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Healthcare	-	8.3%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

PPA vs. SPY — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 38
PPA Sharpe Ratio Rank: 38
PPA Sortino Ratio Rank: 40
PPA Omega Ratio Rank: 35
PPA Calmar Ratio Rank: 40
PPA Martin Ratio Rank: 36

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.30	1.90	-0.60
Sortino ratio: Return per unit of downside risk	1.96	2.58	-0.62
Omega ratio: Gain probability vs. loss probability	1.23	1.34	-0.12
Calmar ratio: Return relative to maximum drawdown	1.91	2.67	-0.76
Martin ratio: Return relative to average drawdown	5.29	11.92	-6.63

PPA vs. SPY - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.30, which is lower than the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of PPA and SPY, 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. SPY - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for PPA and SPY.

Drawdown Indicators

	PPA	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-55.19%	-2.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-8.88%	-4.83%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-18.76%	+3.52%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-24.50%	+6.13%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	-33.72%	-10.20%
Current Drawdown Current decline from peak	-7.37%	-3.17%	-4.20%
Average Drawdown Average peak-to-trough decline	-9.18%	-9.04%	-0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.93%	1.98%	+2.95%

Volatility

PPA vs. SPY - Volatility Comparison

Invesco Aerospace & Defense ETF (PPA) has a higher volatility of 8.40% compared to State Street SPDR S&P 500 ETF (SPY) at 4.87%. This indicates that PPA's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.40%	4.87%	+3.53%
Volatility (6M) Calculated over the trailing 6-month period	17.09%	9.85%	+7.24%
Volatility (1Y) Calculated over the trailing 1-year period	20.15%	12.50%	+7.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.70%	17.15%	+1.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	17.95%	+2.78%

PPA vs. SPY - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

PPA vs. SPY - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.37%, less than SPY's 1.03% 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%
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both PPA and SPY in my portfolio?

PPA and SPY have a correlation of 0.56, 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 SPY?

PPA has higher volatility (8.40%) compared to SPY (4.87%). In terms of maximum drawdown, PPA dropped -57.37% vs SPY's -55.19%.

Which ETF is better, PPA or SPY?

On 10-year performance, PPA leads with 17.79% vs 15.53% for SPY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or SPY?

Over the 10-year period, PPA has performed better with a 17.79% return vs 15.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.58% for PPA.

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

SPY has the higher dividend yield at 1.03%, compared with 0.37% for PPA.

What is the main difference between PPA and SPY?

PPA is categorized as Aerospace & Defense, while SPY is S&P 500. PPA tracks SPADE Defense Index, while SPY tracks S&P 500 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.58% for PPA and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 1.30), 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.