XLII vs. PPA

Last updated Aug 2, 2026

XLII (State Street Industrial Select Sector SPDR Premium Income ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - XLII is a Derivative Income fund actively managed by State Street, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. XLII is actively managed, while PPA is passively managed. Over the past year, XLII returned 20.71% vs 20.71% for PPA. Their 0.72 correlation means they have sometimes moved together and sometimes differently. XLII charges 0.35%/yr vs 0.58%/yr for PPA.

Performance

XLII vs. PPA - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with XLII having a 11.91% return and PPA slightly lower at 11.49%.

XLII

• 1D: 0.96%
• 1M: -0.49%
• 6M: 8.98%
• YTD: 11.91%
• 1Y: 20.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 18.91%

PPA

• 1D: 1.05%
• 1M: -3.67%
• 6M: 0.02%
• YTD: 11.49%
• 1Y: 20.71%
• 3Y*: 27.42%
• 5Y*: 19.17%
• 10Y*: 17.29%
• ALL TIME*: 13.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PPA Invesco Aerospace & Defense ETF	$33.38M	$30.87M	$36.33M
XLII State Street Industrial Select Sector SPDR Premium Income ETF	$449.50K	$324.22K	$213.70K

XLII vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025
XLII State Street Industrial Select Sector SPDR Premium Income ETF	11.91%	6.30%
PPA Invesco Aerospace & Defense ETF	11.49%	7.41%

Correlation

The correlation between XLII and PPA is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.72

The correlation between XLII and PPA has been stable across timeframes, ranging from 0.72 to 0.73 - a consistent structural relationship.

XLII vs. PPA - Sectors Allocation Comparison

Sectors	XLII	PPA
Financial Services	100.8%	0.1%
Industrials	93.8%	88.1%
Technology	5.9%	9.9%
Consumer Cyclical	0.3%	0.3%
Basic Materials	-	1.9%
Communication Services	-	0.2%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLII vs. PPA — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XLII

XLII Risk / Return Rank: 66
XLII Sharpe Ratio Rank: 69
XLII Sortino Ratio Rank: 68
XLII Omega Ratio Rank: 69
XLII Calmar Ratio Rank: 54
XLII Martin Ratio Rank: 70

PPA

PPA Risk / Return Rank: 39
PPA Sharpe Ratio Rank: 39
PPA Sortino Ratio Rank: 40
PPA Omega Ratio Rank: 36
PPA Calmar Ratio Rank: 41
PPA Martin Ratio Rank: 37

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XLII vs. PPA - Risk-Adjusted Trends Comparison

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

	XLII	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.59	0.96	+0.63
Sortino ratio: Return per unit of downside risk	2.26	1.49	+0.78
Omega ratio: Gain probability vs. loss probability	1.29	1.17	+0.12
Calmar ratio: Return relative to maximum drawdown	1.93	1.46	+0.46
Martin ratio: Return relative to average drawdown	8.68	3.72	+4.95

XLII vs. PPA - Sharpe Ratio Comparison

The current XLII Sharpe Ratio is 1.59, which is higher than the PPA Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of XLII 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

XLII vs. PPA - Drawdown Comparison

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

Drawdown Indicators

	XLII	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-10.10%	-57.37%	+47.27%
Max Drawdown (1Y) Largest decline over 1 year	-10.10%	-13.71%	+3.61%
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	-1.32%	-5.91%	+4.59%
Average Drawdown Average peak-to-trough decline	-1.28%	-9.16%	+7.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.24%	5.38%	-3.14%

Volatility

XLII vs. PPA - Volatility Comparison

The current volatility for State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is 3.82%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.77%. This indicates that XLII 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

	XLII	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.82%	6.77%	-2.95%
Volatility (6M) Calculated over the trailing 6-month period	10.44%	16.84%	-6.40%
Volatility (1Y) Calculated over the trailing 1-year period	12.25%	20.85%	-8.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.23%	18.76%	-6.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.23%	20.79%	-8.56%

XLII vs. PPA - Expense Ratio Comparison

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

Dividends

XLII vs. PPA - Dividend Comparison

XLII's dividend yield for the trailing twelve months is around 12.08%, more than PPA's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPA Invesco Aerospace & Defense ETF	0.37%	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	12.08%	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 XLII and PPA in my portfolio?

XLII and PPA have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLII or PPA?

PPA has higher volatility (6.77%) compared to XLII (3.82%). In terms of maximum drawdown, XLII dropped -10.10% vs PPA's -57.37%.

Which ETF is better, XLII or PPA?

On 1-year performance, PPA leads with 20.71% vs 20.71% for XLII. On fees, XLII is cheaper at 0.35% per year. On volatility, XLII has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLII or PPA?

Over the 1-year period, PPA has performed better with a 20.71% return vs 20.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLII or PPA?

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

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

XLII has the higher dividend yield at 12.08%, compared with 0.37% for PPA.

What is the main difference between XLII and PPA?

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

Which has better risk-adjusted returns?

XLII currently has the higher Sharpe Ratio (1.59 vs 0.96), 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.