XSVM vs. PPA

Last updated Jun 4, 2026

XSVM (Invesco S&P SmallCap Value with Momentum ETF) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - XSVM is a Momentum fund tracking the S&P SmallCap 600 High Momentum Value Index, while PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, XSVM returned 12.72%/yr vs 17.38%/yr for PPA. A 0.72 correlation means they provide meaningful diversification when combined. XSVM charges 0.37%/yr vs 0.58%/yr for PPA.

Performance

XSVM vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Value with Momentum ETF (XSVM) 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, XSVM achieves a 16.87% return, which is significantly higher than PPA's 8.54% return. Over the past 10 years, XSVM has underperformed PPA with an annualized return of 12.72%, while PPA has yielded a comparatively higher 17.38% annualized return.

XSVM

• 1D: -1.47%
• 1M: 1.71%
• YTD: 16.87%
• 6M: 16.68%
• 1Y: 34.73%
• 3Y*: 15.99%
• 5Y*: 6.37%
• 10Y*: 12.72%

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)

XSVM vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSVM Invesco S&P SmallCap Value with Momentum ETF	16.87%	7.47%	2.30%	20.20%	-13.63%	56.36%	5.08%	30.01%	-12.33%	3.62%
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 XSVM and PPA is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Oct 27, 2005	0.72

Over the past year, the correlation between XSVM and PPA has dropped to 0.41 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

XSVM vs. PPA - Sectors Allocation Comparison

Sectors	XSVM	PPA
Financial Services	38.8%	-
Consumer Cyclical	17.0%	-
Energy	9.9%	-
Technology	7.8%	9.8%
Consumer Defensive	7.3%	-
Industrials	6.7%	90.1%
Real Estate	5.0%	-
Communication Services	2.9%	0.1%
Basic Materials	1.9%	-
Healthcare	1.4%	-
Utilities	1.3%	-

Return for Risk

XSVM vs. PPA — Risk / Return Rank

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

XSVM

XSVM Risk / Return Rank: 58
XSVM Sharpe Ratio Rank: 54
XSVM Sortino Ratio Rank: 56
XSVM Omega Ratio Rank: 53
XSVM Calmar Ratio Rank: 69
XSVM Martin Ratio Rank: 59

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.

XSVM vs. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Value with Momentum ETF (XSVM) 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.

	XSVM	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.40	+0.48
Sortino ratio: Return per unit of downside risk	2.74	2.05	+0.68
Omega ratio: Gain probability vs. loss probability	1.33	1.24	+0.09
Calmar ratio: Return relative to maximum drawdown	3.46	1.95	+1.51
Martin ratio: Return relative to average drawdown	10.66	5.68	+4.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSVM vs. PPA - Sharpe Ratio Comparison

The current XSVM Sharpe Ratio is 1.88, which is higher than the PPA Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of XSVM 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

	XSVM	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.88	1.40	+0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.97	-0.69
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.84	-0.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.66	-0.29

Drawdowns

XSVM vs. PPA - Drawdown Comparison

The maximum XSVM drawdown since its inception was -62.57%, which is greater than PPA's maximum drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for XSVM and PPA.

Drawdown Indicators

	XSVM	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-62.57%	-57.37%	-5.20%
Max Drawdown (1Y) Largest decline over 1 year	-10.08%	-13.71%	+3.63%
Max Drawdown (3Y) Largest decline over 3 years	-26.21%	-15.24%	-10.97%
Max Drawdown (5Y) Largest decline over 5 years	-26.21%	-18.37%	-7.84%
Max Drawdown (10Y) Largest decline over 10 years	-49.02%	-43.92%	-5.10%
Current Drawdown Current decline from peak	-1.47%	-8.40%	+6.93%
Average Drawdown Average peak-to-trough decline	-11.57%	-9.18%	-2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	4.69%	-1.42%

Volatility

XSVM vs. PPA - Volatility Comparison

The current volatility for Invesco S&P SmallCap Value with Momentum ETF (XSVM) is 5.24%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.73%. This indicates that XSVM 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

	XSVM	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	6.73%	-1.49%
Volatility (6M) Calculated over the trailing 6-month period	12.05%	15.95%	-3.90%
Volatility (1Y) Calculated over the trailing 1-year period	18.59%	19.03%	-0.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.71%	18.49%	+4.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.09%	20.64%	+4.45%

XSVM vs. PPA - Expense Ratio Comparison

XSVM has a 0.37% expense ratio, which is lower than PPA's 0.58% expense ratio.

Dividends

XSVM vs. PPA - Dividend Comparison

XSVM's dividend yield for the trailing twelve months is around 1.81%, 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%
XSVM Invesco S&P SmallCap Value with Momentum ETF	1.81%	2.29%	1.69%	1.31%	1.79%	1.23%	1.21%	1.22%	2.54%	1.90%	2.29%	2.68%

Frequently Asked Questions

Can I hold both XSVM and PPA in my portfolio?

XSVM and PPA have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSVM or PPA?

PPA has higher volatility (6.73%) compared to XSVM (5.24%). In terms of maximum drawdown, XSVM dropped -62.57% vs PPA's -57.37%.

Which ETF is better, XSVM or PPA?

On 10-year performance, PPA leads with 17.38% vs 12.72% for XSVM. On fees, XSVM is cheaper at 0.37% per year. On volatility, XSVM has been the lower-risk option at 5.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSVM or PPA?

Over the 10-year period, PPA has performed better with a 17.38% return vs 12.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSVM or PPA?

XSVM is cheaper with a 0.37% expense ratio, compared with 0.58% for PPA.

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

XSVM has the higher dividend yield at 1.81%, compared with 0.39% for PPA.

What is the main difference between XSVM and PPA?

XSVM is categorized as Momentum, while PPA is Aerospace & Defense. XSVM tracks S&P SmallCap 600 High Momentum Value Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.37% for XSVM and 0.58% for PPA.

Which has better risk-adjusted returns?

XSVM currently has the higher Sharpe Ratio (1.88 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.