XAR vs. PPA

Last updated Jun 23, 2026

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

Performance

XAR vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) 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, XAR achieves a 15.26% return, which is significantly higher than PPA's 10.34% return. Both investments have delivered pretty close results over the past 10 years, with XAR having a 18.54% annualized return and PPA not far behind at 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%

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%

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

XAR vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

XAR vs. PPA - Sectors Allocation Comparison

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

Return for Risk

XAR vs. PPA — Risk / Return Rank

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

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

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

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.

XAR vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) 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.

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.

	XAR	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.40	+0.05
Sortino ratio: Return per unit of downside risk	2.13	2.08	+0.05
Omega ratio: Gain probability vs. loss probability	1.24	1.24	0.00
Calmar ratio: Return relative to maximum drawdown	2.36	2.06	+0.31
Martin ratio: Return relative to average drawdown	6.60	5.73	+0.87

XAR vs. PPA - Sharpe Ratio Comparison

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

Drawdowns

XAR vs. PPA - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

XAR vs. PPA - Volatility Comparison

SPDR S&P Aerospace & Defense ETF (XAR) has a higher volatility of 10.60% compared to Invesco Aerospace & Defense ETF (PPA) at 8.37%. This indicates that XAR's price experiences larger fluctuations and is considered to be riskier than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

XAR vs. PPA - Expense Ratio Comparison

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

Dividends

XAR vs. PPA - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.34%, less than PPA's 0.46% 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 XAR and PPA in my portfolio?

With a correlation of 0.96, XAR and PPA 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, XAR or PPA?

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

Which ETF is better, XAR or PPA?

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, XAR or PPA?

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, XAR or PPA?

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

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

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

What is the main difference between XAR and PPA?

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

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.