RWJ vs. PPA

Last updated Jun 4, 2026

RWJ (Invesco S&P SmallCap 600 Revenue ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - RWJ is a Small Cap Value Equities fund tracking the S&P SmallCap 600 Revenue-Weighted Index, while PPA is a Industrials Equities fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, RWJ returned 13.02%/yr vs 17.38%/yr for PPA. A 0.72 correlation means they provide meaningful diversification when combined. RWJ charges 0.39%/yr vs 0.61%/yr for PPA.

Performance

RWJ vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap 600 Revenue ETF (RWJ) and Invesco Aerospace & Defense ETF (PPA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RWJ achieves a 15.88% return, which is significantly higher than PPA's 8.54% return. Over the past 10 years, RWJ has underperformed PPA with an annualized return of 13.02%, while PPA has yielded a comparatively higher 17.38% annualized return.

RWJ

• 1D: -1.07%
• 1M: 1.90%
• YTD: 15.88%
• 6M: 14.97%
• 1Y: 36.55%
• 3Y*: 16.43%
• 5Y*: 7.73%
• 10Y*: 13.02%

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%

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

RWJ vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWJ Invesco S&P SmallCap 600 Revenue ETF	15.88%	7.75%	11.81%	16.21%	-10.97%	52.82%	20.83%	20.29%	-16.95%	5.30%
PPA Invesco Aerospace & Defense ETF	8.54%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between RWJ and PPA is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Feb 25, 2008	0.72

Over the past year, the correlation between RWJ and PPA has dropped to 0.47 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

RWJ vs. PPA - Sectors Allocation Comparison

Sectors	RWJ	PPA
Consumer Cyclical	23.9%	-
Industrials	16.2%	90.1%
Healthcare	11.2%	-
Financial Services	11.0%	-
Technology	9.9%	9.8%
Energy	7.4%	-
Consumer Defensive	6.9%	-
Basic Materials	5.2%	-
Real Estate	4.0%	-
Communication Services	3.3%	0.1%
Utilities	0.9%	-

Return for Risk

RWJ vs. PPA — Risk / Return Rank

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

RWJ

RWJ Risk / Return Rank: 57
RWJ Sharpe Ratio Rank: 55
RWJ Sortino Ratio Rank: 57
RWJ Omega Ratio Rank: 52
RWJ Calmar Ratio Rank: 65
RWJ Martin Ratio Rank: 58

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.

RWJ vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap 600 Revenue ETF (RWJ) and Invesco Aerospace & Defense ETF (PPA). 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.

	RWJ	PPA	Difference
Sharpe ratio Return per unit of total volatility	1.90	1.40	+0.49
Sortino ratio Return per unit of downside risk	2.75	2.05	+0.69
Omega ratio Gain probability vs. loss probability	1.33	1.24	+0.09
Calmar ratio Return relative to maximum drawdown	3.25	1.95	+1.30
Martin ratio Return relative to average drawdown	10.39	5.68	+4.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RWJ vs. PPA - Sharpe Ratio Comparison

The current RWJ Sharpe Ratio is 1.90, which is higher than the PPA Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of RWJ and PPA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RWJ	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.90	1.40	+0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.97	-0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.84	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.66	-0.20

Drawdowns

RWJ vs. PPA - Drawdown Comparison

The maximum RWJ drawdown since its inception was -55.97%, roughly equal to the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for RWJ and PPA.

Drawdown Indicators

	RWJ	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-55.97%	-57.37%	+1.40%
Max Drawdown (1Y) Largest decline over 1 year	-11.31%	-13.71%	+2.40%
Max Drawdown (3Y) Largest decline over 3 years	-29.29%	-15.24%	-14.05%
Max Drawdown (5Y) Largest decline over 5 years	-29.29%	-18.37%	-10.92%
Max Drawdown (10Y) Largest decline over 10 years	-51.33%	-43.92%	-7.41%
Current Drawdown Current decline from peak	-1.07%	-8.40%	+7.33%
Average Drawdown Average peak-to-trough decline	-9.24%	-9.18%	-0.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	4.69%	-1.16%

Volatility

RWJ vs. PPA - Volatility Comparison

The current volatility for Invesco S&P SmallCap 600 Revenue ETF (RWJ) is 4.64%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.73%. This indicates that RWJ experiences smaller price fluctuations and is considered to be less risky than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RWJ	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.64%	6.73%	-2.09%
Volatility (6M) Calculated over the trailing 6-month period	12.29%	15.95%	-3.66%
Volatility (1Y) Calculated over the trailing 1-year period	19.40%	19.03%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.71%	18.49%	+5.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.14%	20.64%	+5.50%

RWJ vs. PPA - Expense Ratio Comparison

RWJ has a 0.39% expense ratio, which is lower than PPA's 0.61% expense ratio.

Dividends

RWJ vs. PPA - Dividend Comparison

RWJ's dividend yield for the trailing twelve months is around 1.01%, more than PPA's 0.39% 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%
RWJ Invesco S&P SmallCap 600 Revenue ETF	1.01%	1.11%	1.15%	1.34%	1.02%	0.61%	0.89%	1.22%	1.44%	1.11%	0.60%	0.74%

Frequently Asked Questions

Can I hold both RWJ and PPA in my portfolio?

RWJ and PPA have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWJ or PPA?

PPA has higher volatility (6.73%) compared to RWJ (4.64%). In terms of maximum drawdown, RWJ dropped -55.97% vs PPA's -57.37%.

Which ETF is better, RWJ or PPA?

On 10-year performance, PPA leads with 17.38% vs 13.02% for RWJ. On fees, RWJ is cheaper at 0.39% per year. On volatility, RWJ has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RWJ or PPA?

Over the 10-year period, PPA has performed better with a 17.38% return vs 13.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWJ or PPA?

RWJ is cheaper with a 0.39% expense ratio, compared with 0.61% for PPA.

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

RWJ has the higher dividend yield at 1.01%, compared with 0.39% for PPA.

What is the main difference between RWJ and PPA?

RWJ is categorized as Small Cap Value Equities, while PPA is Industrials Equities. RWJ tracks S&P SmallCap 600 Revenue-Weighted Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.39% for RWJ and 0.61% for PPA.

Which has better risk-adjusted returns?

RWJ currently has the higher Sharpe Ratio (1.90 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.