PPA vs. XAR

Last updated Jun 23, 2026

PPA (Invesco Aerospace & Defense ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both Aerospace & Defense funds - PPA tracks the SPADE Defense Index while XAR tracks the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 10 years, PPA returned 17.85%/yr vs 18.54%/yr for XAR. Their correlation of 0.90 suggests significant overlap in exposure. PPA charges 0.58%/yr vs 0.35%/yr for XAR.

Performance

PPA vs. XAR - Performance Comparison

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

Returns By Period

In the year-to-date period, PPA achieves a 10.34% return, which is significantly lower than XAR's 15.26% return. Both investments have delivered pretty close results over the past 10 years, with PPA having a 17.85% annualized return and XAR not far ahead at 18.54%.

PPA

• 1D: -1.44%
• 1M: 1.49%
• YTD: 10.34%
• 6M: 8.28%
• 1Y: 28.04%
• 3Y*: 29.01%
• 5Y*: 18.72%
• 10Y*: 17.85%

XAR

• 1D: -2.24%
• 1M: 2.49%
• YTD: 15.26%
• 6M: 11.31%
• 1Y: 40.45%
• 3Y*: 33.82%
• 5Y*: 16.54%
• 10Y*: 18.54%

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

PPA vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PPA Invesco Aerospace & Defense ETF	10.34%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%
XAR SPDR S&P Aerospace & Defense ETF	15.26%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%

Correlation

The correlation between PPA and XAR is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.90

The correlation between PPA and XAR has been stable across timeframes, ranging from 0.90 to 0.96 - a consistent structural relationship.

PPA vs. XAR - Sectors Allocation Comparison

Sectors	PPA	XAR
Industrials	90.6%	99.3%
Technology	9.2%	0.7%
Communication Services	0.1%	-
Financial Services	0.1%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. XAR — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 40
PPA Sharpe Ratio Rank: 40
PPA Sortino Ratio Rank: 42
PPA Omega Ratio Rank: 37
PPA Calmar Ratio Rank: 42
PPA Martin Ratio Rank: 38

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 42
XAR Sortino Ratio Rank: 43
XAR Omega Ratio Rank: 37
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 42

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. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and SPDR S&P Aerospace & Defense ETF (XAR). 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	XAR	Difference
Sharpe ratio: Return per unit of total volatility	1.40	1.45	-0.05
Sortino ratio: Return per unit of downside risk	2.08	2.13	-0.05
Omega ratio: Gain probability vs. loss probability	1.24	1.24	0.00
Calmar ratio: Return relative to maximum drawdown	2.06	2.36	-0.31
Martin ratio: Return relative to average drawdown	5.73	6.60	-0.87

PPA vs. XAR - Sharpe Ratio Comparison

The current PPA Sharpe Ratio is 1.40, which is comparable to the XAR Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of PPA and XAR, 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. XAR - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for PPA and XAR.

Drawdown Indicators

	PPA	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-46.37%	-11.00%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	-17.22%	+3.51%
Max Drawdown (3Y) Largest decline over 3 years	-15.24%	-19.73%	+4.49%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-32.40%	+14.03%
Max Drawdown (10Y) Largest decline over 10 years	-43.92%	-46.37%	+2.45%
Current Drawdown Current decline from peak	-6.87%	-5.02%	-1.85%
Average Drawdown Average peak-to-trough decline	-9.18%	-6.78%	-2.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.91%	6.15%	-1.24%

Volatility

PPA vs. XAR - Volatility Comparison

The current volatility for Invesco Aerospace & Defense ETF (PPA) is 8.37%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 10.60%. This indicates that PPA experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PPA	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.37%	10.60%	-2.23%
Volatility (6M) Calculated over the trailing 6-month period	17.10%	23.50%	-6.40%
Volatility (1Y) Calculated over the trailing 1-year period	20.18%	28.02%	-7.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.70%	23.69%	-4.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.75%	24.77%	-4.02%

PPA vs. XAR - Expense Ratio Comparison

PPA has a 0.58% expense ratio, which is higher than XAR's 0.35% expense ratio.

Dividends

PPA vs. XAR - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.46%, more than XAR's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPA Invesco Aerospace & Defense ETF	0.46%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%
XAR SPDR S&P Aerospace & Defense ETF	0.34%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both PPA and XAR in my portfolio?

With a correlation of 0.96, PPA and XAR move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PPA or XAR?

XAR has higher volatility (10.60%) compared to PPA (8.37%). In terms of maximum drawdown, PPA dropped -57.37% vs XAR's -46.37%.

Which ETF is better, PPA or XAR?

On 10-year performance, XAR leads with 18.54% vs 17.85% for PPA. On fees, XAR is cheaper at 0.35% per year. On volatility, PPA has been the lower-risk option at 8.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PPA or XAR?

Over the 10-year period, XAR has performed better with a 18.54% return vs 17.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PPA or XAR?

XAR is cheaper with a 0.35% expense ratio, compared with 0.58% for PPA.

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

PPA has the higher dividend yield at 0.46%, compared with 0.34% for XAR.

What is the main difference between PPA and XAR?

PPA tracks SPADE Defense Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.58% for PPA and 0.35% for XAR.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.45 vs 1.40), 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.