PPA vs. XLII

Last updated Jun 4, 2026

PPA (Invesco Aerospace & Defense ETF) and XLII (State Street Industrial Select Sector SPDR Premium Income ETF) are both exchange-traded funds - PPA is a Aerospace & Defense fund tracking the SPADE Defense Index, while XLII is a Derivative Income fund actively managed by State Street. PPA is passively managed, while XLII is actively managed. A 0.76 correlation means they provide meaningful diversification when combined. PPA charges 0.58%/yr vs 0.35%/yr for XLII.

Performance

PPA vs. XLII - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aerospace & Defense ETF (PPA) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PPA achieves a 8.54% return, which is significantly higher than XLII's 6.73% return.

PPA

• 1D: -1.74%
• 1M: 3.19%
• YTD: 8.54%
• 6M: 13.46%
• 1Y: 26.57%
• 3Y*: 28.92%
• 5Y*: 17.82%
• 10Y*: 17.38%

XLII

• 1D: -0.15%
• 1M: 2.45%
• YTD: 6.73%
• 6M: 8.74%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PPA vs. XLII - Yearly Performance Comparison

	2026 (YTD)	2025
PPA Invesco Aerospace & Defense ETF	8.54%	6.86%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	6.73%	6.62%

Correlation

The correlation between PPA and XLII is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 31, 2025	0.76

PPA vs. XLII - Sectors Allocation Comparison

Sectors	PPA	XLII
Industrials	90.1%	-
Technology	9.8%	-
Communication Services	0.1%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	100.3%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

PPA vs. XLII — Risk / Return Rank

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

PPA

PPA Risk / Return Rank: 37
PPA Sharpe Ratio Rank: 38
PPA Sortino Ratio Rank: 39
PPA Omega Ratio Rank: 35
PPA Calmar Ratio Rank: 38
PPA Martin Ratio Rank: 36

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. XLII - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aerospace & Defense ETF (PPA) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). 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.

	PPA	XLII	Difference
Sharpe ratio: Return per unit of total volatility	1.40	—	—
Sortino ratio: Return per unit of downside risk	2.05	—	—
Omega ratio: Gain probability vs. loss probability	1.24	—	—
Calmar ratio: Return relative to maximum drawdown	1.95	—	—
Martin ratio: Return relative to average drawdown	5.68	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	PPA	XLII	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	1.44	-0.78

Drawdowns

PPA vs. XLII - Drawdown Comparison

The maximum PPA drawdown since its inception was -57.37%, which is greater than XLII's maximum drawdown of -10.10%. Use the drawdown chart below to compare losses from any high point for PPA and XLII.

Drawdown Indicators

	PPA	XLII	Difference
Max Drawdown Largest peak-to-trough decline	-57.37%	-10.10%	-47.27%
Max Drawdown (1Y) Largest decline over 1 year	-13.71%	—	—
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	-8.40%	-0.36%	-8.04%
Average Drawdown Average peak-to-trough decline	-9.18%	-1.34%	-7.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.69%	—	—

Volatility

Volatility by Period

	PPA	XLII	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	—	—
Volatility (6M) Calculated over the trailing 6-month period	15.95%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	19.03%	11.55%	+7.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.49%	11.55%	+6.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.64%	11.55%	+9.09%

PPA vs. XLII - Expense Ratio Comparison

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

Dividends

PPA vs. XLII - Dividend Comparison

PPA's dividend yield for the trailing twelve months is around 0.39%, less than XLII's 11.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPA Invesco Aerospace & Defense ETF	0.39%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	11.29%	5.47%	0.00%	0.00%	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 XLII in my portfolio?

PPA and XLII have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PPA or XLII?

On fees, XLII is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PPA or XLII?

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

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

XLII has the higher dividend yield at 11.29%, compared with 0.39% for PPA.

What is the main difference between PPA and XLII?

PPA is categorized as Aerospace & Defense, while XLII is Derivative Income. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.58% for PPA and 0.35% for XLII.