PPA - ETF AI Analysis
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Invesco Aerospace & Defense ETF (PPA)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Recent Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing positive momentum for investors.
Leading Aerospace & Defense Companies
Many of the largest holdings, such as Lockheed Martin, Howmet Aerospace, and others, have shown strong or steady performance, helping support the fund’s overall returns.
Large Asset Base
The fund manages a sizable pool of assets, which can support liquidity and trading efficiency for investors.
Negative Factors
High Sector Concentration
With the vast majority of assets in the industrials sector and focused on aerospace and defense, the fund is heavily exposed to swings in this single industry.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, offering very little exposure to other countries and regions.
Above-Average Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of going to investors.
PPA vs. SPDR S&P 500 ETF (SPY)
AUM8.17B
RegionNorth America
Expense Ratio0.58%
Beta0.94
IssuerInvesco
Inception DateOct 26, 2005
Dividend Yield0.41%
Asset ClassEquity
Index TrackedSPADE Defense Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume232,019
30 Day Avg. Volume279,903
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
207.80Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering61
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PPA Summary
The Invesco Aerospace & Defense ETF (PPA) tracks the SPADE Defense Index and focuses on companies in the aerospace and defense industry. It mainly holds U.S. industrial and tech firms involved in aircraft, defense systems, and related equipment. Well-known holdings include Boeing and Lockheed Martin. Someone might invest in PPA to get targeted exposure to a sector that can benefit from long-term defense spending and ongoing advances in aerospace technology. However, this ETF can be volatile and is heavily tied to the fortunes of the defense industry, so its value can go up and down sharply.
How much will it cost me?The Invesco Aerospace & Defense ETF (PPA) has an expense ratio of 0.58%, which means you’ll pay $5.80 per year for every $1,000 invested. This is higher than average because it is a sector-focused ETF that requires active management to track the SPADE Defense Index and maintain exposure to specialized companies in aerospace and defense.
What would affect this ETF?The Invesco Aerospace & Defense ETF (PPA) could benefit from rising global defense budgets and advancements in aerospace technology, as governments prioritize national security and innovation. However, it may face challenges from potential defense spending cuts, geopolitical tensions, or regulatory changes that impact major U.S.-based defense contractors like Boeing and Lockheed Martin, which are among its top holdings.
PPA Top 10 Holdings
PPA is firmly strapped to the U.S. aerospace and defense engine, with industrial heavyweights doing most of the flying. Howmet, Honeywell, and General Dynamics have been steady climbers, helping to prop up the fund with solid, if unspectacular, gains. Lockheed Martin is also pulling its weight despite some recent turbulence. On the flip side, Boeing and Northrop Grumman have been lagging, acting more like drag than thrust. A fast-rising Rocket Lab adds a splash of high-octane growth, but also extra volatility in this otherwise defense-heavy lineup.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Boeing | 8.62% | $703.59M | $171.61B | 2.00% | 54 Neutral | |
| GE Aerospace | 8.49% | $692.96M | $331.49B | 27.66% | 72 Outperform | |
| RTX | 6.82% | $557.18M | $234.67B | 26.73% | 74 Outperform | |
| Lockheed Martin | 6.15% | $502.27M | $118.38B | 6.93% | 70 Outperform | |
| Honeywell International | 4.67% | $381.65M | $149.05B | 3.73% | 77 Outperform | |
| General Dynamics | 4.30% | $351.36M | $91.30B | 22.30% | 80 Outperform | |
| Howmet Aerospace | 4.24% | $346.24M | $100.31B | 45.25% | 67 Neutral | |
| Northrop Grumman | 4.00% | $326.83M | $76.21B | 9.91% | 76 Outperform | |
| Rocket Lab USA | 3.97% | $324.04M | $71.39B | 361.53% | 57 Neutral | |
| Elbit Systems | 3.53% | $288.43M | $39.81B | 64.01% | 73 Outperform |
PPA Technical Analysis
Positive
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Price Trends
170.00
Positive
173.37
Negative
163.09
Positive
Market Momentum
1.43
Negative
54.19
Neutral
72.92
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PPA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 169.90, equal to the 50-day MA of 170.00, and equal to the 200-day MA of 163.09, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPA.
PPA Peer Comparison
Comparison Results
Performance Comparison
PPA
Invesco Aerospace & Defense ETF
172.97
38.27
28.41%
VIS
Vanguard Industrials ETF
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XAR
SPDR S&P Aerospace & Defense ETF
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IYT
iShares US Transportation ETF
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FIDU
Fidelity MSCI Industrial Index ETF
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IYJ
iShares U.S. Industrials ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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