PPA - ETF AI Analysis
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Invesco Aerospace & Defense ETF (PPA)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Aerospace Leaders in Top Holdings
Several of the largest positions, such as GE Aerospace, General Dynamics, Howmet Aerospace, and Parker Hannifin, have shown strong year-to-date performance, helping support the ETF’s overall returns.
Focused Exposure to Aerospace & Defense
The fund’s heavy tilt toward industrial companies in the aerospace and defense industry gives investors targeted access to a specialized area that can benefit from steady defense and aviation spending.
Large Asset Base
The ETF manages a sizable pool of assets, which can help with trading liquidity and make it easier for investors to buy and sell shares.
Negative Factors
High Sector Concentration
With most of the portfolio in industrials and very limited exposure to other sectors, the fund is heavily tied to the fortunes of the aerospace and defense industry.
Mixed Performance Among Top Holdings
Some major positions like Boeing, Northrop Grumman, and L3Harris Technologies have shown weak year-to-date performance, which can drag on the fund’s results even as other holdings do well.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning more of the gross return is used to cover fees instead of going to investors.
PPA vs. SPDR S&P 500 ETF (SPY)
AUM7.83B
RegionNorth America
Expense Ratio0.58%
Beta1.03
IssuerInvesco
Inception DateOct 26, 2005
Dividend Yield0.38%
Asset ClassEquity
Index TrackedSPADE Defense Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume222,089
30 Day Avg. Volume188,748
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
218.26Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering62
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PPA Summary
The Invesco Aerospace & Defense ETF (PPA) is a fund that tracks the SPADE Defense Index, focusing on companies tied to aircraft, defense systems, and related technology. It mainly holds U.S. industrial and tech firms that benefit from government defense spending and ongoing demand for aerospace innovation. Well-known holdings include Boeing and Lockheed Martin. An investor might choose PPA to get targeted exposure to the aerospace and defense theme, which can add diversification and potential long-term growth to a portfolio. However, it can be volatile and may rise or fall with changes in defense budgets and overall market conditions.
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 essentially a bet on U.S. aerospace and defense heavyweights, with names like RTX, GE Aerospace, Lockheed Martin, and General Dynamics doing most of the lifting as their shares have been steadily rising on strong backlogs and government spending. Boeing and Northrop Grumman, however, are more of a headache, with mixed to lagging performance that occasionally puts a drag on the fund. Howmet Aerospace and Parker Hannifin add an industrial-tech flavor, with rising stocks that help offset the weaker names, keeping this defense-focused, U.S.-centric ETF tightly tied to the sector’s fortunes.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| RTX | 8.38% | $683.87M | $285.33B | 33.49% | 74 Outperform | |
| GE Aerospace | 6.94% | $566.63M | $355.45B | 24.48% | 72 Outperform | |
| Boeing | 6.84% | $558.07M | $165.84B | -10.59% | 54 Neutral | |
| Lockheed Martin | 6.59% | $537.95M | $130.13B | 23.75% | 70 Outperform | |
| General Dynamics | 5.04% | $411.15M | $102.63B | 16.87% | 80 Outperform | |
| Northrop Grumman | 4.90% | $400.22M | $77.51B | -7.54% | 76 Outperform | |
| Howmet Aerospace | 4.31% | $351.58M | $105.62B | 52.12% | 67 Neutral | |
| Parker Hannifin | 3.86% | $314.98M | $125.42B | 31.04% | 79 Outperform | |
| Axon Enterprise | 3.73% | $304.75M | $48.80B | -19.61% | 58 Neutral | |
| L3Harris Technologies | 3.73% | $304.18M | $48.94B | -5.33% | 70 Neutral |
PPA Technical Analysis
Negative
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Price Trends
175.23
Negative
172.98
Negative
170.31
Negative
Market Momentum
-3.20
Positive
33.56
Neutral
9.99
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PPA, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 175.73, equal to the 50-day MA of 175.23, and equal to the 200-day MA of 170.31, indicating a bearish trend. The MACD of -3.20 indicates Positive momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 9.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPA.
PPA Peer Comparison
Comparison Results
Performance Comparison
PPA
Invesco Aerospace & Defense ETF
165.18
18.33
12.48%
AIRR
First Trust RBA American Industrial Renaissance ETF
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VIS
Vanguard Industrials ETF
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XAR
SPDR S&P Aerospace & Defense ETF
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FIDU
Fidelity MSCI Industrial Index ETF
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IYT
iShares US Transportation 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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