At a glance
PPA charges 0.58% a year, above the 0.34% average of the 8 funds most like it (the 8th cheapest of 9). It has $8.26B in assets, the 3rd largest of that group; it paid 0.43% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −1.3% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +26.1% a year. At its worst it fell 43.5% in the 2020 crash (S&P 500: 33.7%) and 18.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 1 month after the lows. Its ten largest positions make up 54.7% of the fund, out of 61 in all.
The short version
Invesco Aerospace & Defense ETF (PPA) is an index fund that holds the stocks in the SPADE Defense Index. As of June 30, 2026, the index had 61 companies tied to U.S. defense, homeland security and government space work. As of July 31, 2026, its largest holdings were RTX, General Electric, Boeing and Lockheed Martin. It charges 0.58% a year, more than most similar funds. iShares' ITA, for example, charges 0.40%.
Price history
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PPA -1.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PPA official prospectus, to Dec 31, 2025 | — | +36.98% | — | +19.01% | +16.98% | — |
| PPA price data to Oct 27, 2026 | +0.6% | -1.3% | +26.1% | +17.3% | +16.1% | +12.9% |
- Over the year to Oct 27, 2026, PPA returned -1.3%, 5th of 9 among similar funds.
- Its 5-year annualized return was +17.3% and its 10-year +16.1%.
- In the 2020 COVID crash it fell 43.5% and regained its old high 11.7 months after the low.
- Its worst full calendar year was 2008 (-37.4%); its best was 2013 (+50.3%).
- The deepest fall in its price history was 57.4% (Oct 9, 2007 to Mar 9, 2009), recovered by Mar 13, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.6% | — |
| 2025 | +37.1% | +36.98% |
| 2024 | +25.3% | +25.44% |
| 2023 | +18.4% | +18.39% |
| 2022 | +9.5% | +9.48% |
| 2021 | +7.1% | +7.19% |
| 2020 | +0.5% | +0.37% |
| 2019 | +39.6% | +39.56% |
| 2018 | -7.5% | -7.36% |
| 2017 | +30.1% | +30.03% |
| 2016 | +19.3% | +19.20% |
| 2015 | +4.0% | — |
| 2014 | +12.7% | — |
| 2013 | +50.3% | — |
| 2012 | +17.6% | — |
| 2011 | -1.7% | — |
| 2010 | +10.6% | — |
| 2009 | +22.9% | — |
| 2008 | -37.4% | — |
| 2007 | +22.3% | — |
| 2006 | +20.0% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 57.4% over that stretch · deepest drop along the way 57.4%, back to its old high 48.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 43.5% over that stretch · deepest drop along the way 43.5%, back to its old high 11.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.4% over that stretch · deepest drop along the way 18.4%, back to its old high 1.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6700 | |
| 2025 | $0.6600 | -4.3% |
| 2024 | $0.6900 | +9.5% |
| 2023 | $0.6300 | -1.6% |
| 2022 | $0.6400 | +52.4% |
| 2021 | $0.4200 | -30.0% |
| 2020 | $0.6000 | -7.7% |
| 2019 | $0.6500 | +47.7% |
| 2018 | $0.4400 | +22.2% |
| 2017 | $0.3600 | -50.0% |
| 2016 | $0.7200 | +44.0% |
| 2015 | $0.5000 | +138.1% |
| 2014 | $0.2100 | -46.2% |
| 2013 | $0.3900 | -11.4% |
| 2012 | $0.4400 | +120.0% |
| 2011 | $0.2000 | +22.0% |
| 2010 | $0.1640 | -13.7% |
| 2009 | $0.1900 | +26.7% |
| 2008 | $0.1500 | +200.0% |
| 2007 | $0.0500 | -2.3% |
| 2006 | $0.0512 |
What's inside
As of Jul 31, 2026, the fund held 61 securities; the ten largest made up 54.73% of assets. It also reported 5.17% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| RTX Corp. | 8.30% | |
| General Electric Co. | 7.11% | |
| Boeing Co. (The) | 6.87% | |
| Lockheed Martin Corp. | 6.64% | |
| General Dynamics Corp. | 4.96% | |
| Northrop Grumman Corp. | 4.75% | |
| Howmet Aerospace Inc. | 4.48% | |
| Honeywell Aerospace Inc. | 4.09% | |
| L3Harris Technologies, Inc. | 3.83% | |
| Parker-Hannifin Corp. | 3.69% | |
| Elbit Systems Ltd. | 3.49% | |
| Axon Enterprise, Inc. | 3.20% | |
| TransDigm Group Inc. | 3.09% | |
| Amphenol Corp. | 2.52% | |
| Eaton Corp. PLC | 2.15% |
By country
United States 93.57%Israel 3.49%Ireland 2.15%Canada 0.76%By asset type
Stocks 99.98%By sector
Sectors of the companies held, for the 64% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $81.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.07%, -0.48%, -1.28%.
How it works
PPA tries to match the results of the SPADE Defense Index before fees. SPADE Indexes LLC builds and runs that index. It picks common stocks of companies the provider calls "systematically important" to defense. These are companies that develop, build, operate or support U.S. military, homeland security and government space operations. The prospectus lists examples such as military aircraft, naval vessels, drones, missiles and missile defense, secure communications, space systems, border security and military cybersecurity. Stocks must trade on the New York Stock Exchange or Nasdaq.
The index weights stocks by a modified version of market value, meaning the share price times the number of shares. Bigger companies get bigger slices, adjusted by the index's own rules. As of June 30, 2026, the index had 61 stocks, ranging from about $1.0 billion to $390.0 billion in market value. PPA uses "full replication," which means it generally owns every stock in the index at the index's weights. As of July 31, 2026, the 10 largest holdings made up about 55% of the fund. Portfolio turnover was 14%, so the fund does relatively little trading.
PPA is "non-diversified," which means it can put more money into a few companies than a diversified fund can. It must keep at least 80% of its assets in aerospace and defense companies. It does not sell a struggling stock unless the index removes it. It uses no leverage and no options, and it held no derivatives as of July 31, 2026.
What it really costs
- PPA charges 0.58% a year, versus an average of 0.34% for the similar funds below (8th of 9, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $59 in the first year and $726 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PPA | $59 | $186 | $324 | $726 |
In a retirement portfolio
PPA is a non-diversified fund focused on one industry and has fallen more than 40% in two market crashes, so it fits better as a small add-on than as a core holding.
PPA gives focused exposure to U.S. defense and aerospace companies, but it holds only one industry and is non-diversified. From October 2007 to March 2009 it lost 57.4%, and it took about four years from that low to recover by March 2013. Its worst calendar year was 2008, at -37.4%. In the 2020 COVID crash it fell 43.5% in about a month and recovered in roughly a year. Its 2022 drop was milder, at 18.4%, and it had made that back by November 2022. Anyone who had to sell shares in a year like 2008 would have locked in deep losses. Income is small: the yield was 0.43% as of October 27, 2026, paid twice a year. The fund costs 0.58% a year, above the 0.34% average for similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a dedicated slice of U.S. defense contractors such as RTX, Lockheed Martin and Northrop Grumman alongside a broadly diversified core.
- People who can ride out deep swings: the fund fell 57.4% in 2008–2009 and 43.5% in early 2020 before recovering.
- Investors who prefer a large, long-running fund: it launched in 2005 and had about $8.3 billion in net assets as of July 31, 2026.
Look elsewhere if
- Cost-focused investors: at 0.58% a year, PPA ranked 8th of 9 similar funds on cost. ITA charges 0.40% and XAR charges 0.35%.
- Retirees looking for income: the yield was 0.43% as of October 27, 2026, and the fund pays only twice a year.
- Anyone who needs broad diversification: PPA holds a single industry, and its top 10 holdings were about 55% of assets as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| PPA this fund | — | 0.58% | $8.26B | -1.3% | +26.1% |
| ITA iShares U.S. Aerospace & Defense ETF | 66% | 0.4% | $14.44B | -0.3% | +24.8% |
| MISL First Trust Indxx Aerospace & Defense ETF | 62% | 0.6% | $801.9M | -5.2% | +23.9% |
| NATO Themes Transatlantic Defense ETF | 58% | 0.35% | $100.7M | -7.3% | — |
| GCAD Gabelli Commercial Aerospace and Defense ETF | 48% | 0% | $43.7M | +6.2% | +29.7% |
| XAR SPDR S&P Aerospace & Defense ETF | 48% | 0.35% | $6.47B | -10.5% | +26.6% |
| SHLD Global X Defense Tech ETF | 40% | 0.5% | $7.24B | -6.9% | +36.9% |
| ROKT SPDR S&P Kensho Final Frontiers ETF | 38% | 0.45% | $248.4M | +28.0% | +40.5% |
Questions investors ask
What does PPA invest in?
PPA owns stocks of companies tied to U.S. defense, military, homeland security and government space work, following the SPADE Defense Index. As of July 31, 2026, its largest holdings were RTX (8.3%), General Electric (7.1%), Boeing (6.9%), Lockheed Martin (6.6%), General Dynamics (5.0%) and Northrop Grumman (4.8%). The top 10 made up about 55% of assets. About 94% was in U.S. companies, with smaller stakes in Israel's Elbit Systems and Ireland-based Eaton.
PPA vs ITA: what's the difference?
Both are aerospace and defense stock funds, and in their latest N-PORT reports about 66% of their holdings overlapped. PPA tracks the SPADE Defense Index and charges 0.58% a year. iShares U.S. Aerospace & Defense ETF (ITA) charges 0.40%. ITA is also larger, with about $14.4 billion in net assets as of June 30, 2026. PPA had about $8.3 billion as of July 31, 2026. One-year returns were close: -1.3% for PPA through October 27, 2026, and -1.2% for ITA through October 29, 2026.
What is PPA's expense ratio?
PPA's expense ratio is 0.58% a year, according to its prospectus filed August 27, 2026. That includes a 0.50% management fee. The SEC's standard example assumes $10,000 invested, a 5% annual return and shares sold at the end of each period. On that basis, costs would total about $59 after one year, $186 after three years, $324 after five and $726 after ten. The average for similar funds is 0.34%, and PPA ranked 8th of 9 on cost.
Does PPA pay dividends?
Yes, but they are small. PPA pays dividends twice a year. Over the 12 months through October 27, 2026, it paid $0.67 a share, a yield of 0.43%. The fund is built to track defense stocks, not to produce income, so dividends are a minor part of its total return. Investors looking for regular cash flow would get little of it from this fund.
How has PPA performed over the long term?
PPA has done well over long periods but with sharp drops along the way. According to its prospectus, as of December 31, 2025, it returned 36.98% over one year, 19.01% a year over five years and 16.98% a year over ten years. It also lost 57.4% from 2007 to 2009, and its worst quarter was the first quarter of 2020, at -26.58%. Its price return for the year through October 27, 2026 was -1.3%.