PPA vs. SPY
Compare and contrast key facts about Invesco Aerospace & Defense ETF (PPA) and SPDR S&P 500 ETF (SPY).
PPA and SPY 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. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both PPA and SPY 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 SPY.
Performance
PPA vs. SPY - Performance Comparison
Returns By Period
In the year-to-date period, PPA achieves a 28.26% return, which is significantly higher than SPY's 25.36% return. Over the past 10 years, PPA has outperformed SPY with an annualized return of 14.27%, while SPY has yielded a comparatively lower 13.07% annualized return.
PPA
28.26%
-1.27%
11.67%
36.39%
12.19%
14.27%
SPY
25.36%
0.98%
11.79%
31.70%
15.55%
13.07%
Key characteristics
| PPA | SPY | |
|---|---|---|
| Sharpe Ratio | 2.66 | 2.69 |
| Sortino Ratio | 3.54 | 3.59 |
| Omega Ratio | 1.48 | 1.50 |
| Calmar Ratio | 6.35 | 3.89 |
| Martin Ratio | 21.14 | 17.53 |
| Ulcer Index | 1.78% | 1.87% |
| Daily Std Dev | 14.14% | 12.15% |
| Max Drawdown | -57.37% | -55.19% |
| Current Drawdown | -5.41% | -1.41% |
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PPA vs. SPY - Expense Ratio Comparison
PPA has a 0.61% expense ratio, which is higher than SPY's 0.09% expense ratio.
Correlation
The correlation between PPA and SPY is 0.80, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
PPA vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and 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.
Dividends
PPA vs. SPY - Dividend Comparison
PPA's dividend yield for the trailing twelve months is around 0.55%, less than SPY's 1.19% 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% |
SPY SPDR S&P 500 ETF | 1.19% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
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. For additional features, visit the drawdowns tool.
Volatility
PPA vs. SPY - Volatility Comparison
Invesco Aerospace & Defense ETF (PPA) has a higher volatility of 6.94% compared to SPDR S&P 500 ETF (SPY) at 4.09%. 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.