PPA - ETF AI Analysis
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Invesco Aerospace & Defense ETF (PPA)
PPA, the Invesco Aerospace & Defense ETF, has a solid overall rating that reflects its strong core of leading defense and aerospace companies. Major holdings like General Dynamics, Northrop Grumman, and Parker Hannifin contribute positively through strong financial performance, robust backlogs, and growth in key aerospace segments, while names like Boeing introduce some drag due to ongoing financial and operational challenges. The main risk factor is the fund’s heavy concentration in the aerospace and defense sector, which ties its fortunes closely to government spending, program delays, and valuation pressures across the industry.
PPA vs. SPDR S&P 500 ETF (SPY)
- AUM
- 7.39B
- Region
- North America
- Expense Ratio
- 0.58%
- Beta
- 1.02
- Issuer
- Invesco
- Inception Date
- Oct 26, 2005
- Dividend Yield
- 0.43%
- Asset Class
- Equity
- Index Tracked
- SPADE Defense Index
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 firmly anchored in U.S. aerospace and defense, with giants like Lockheed Martin and RTX doing much of the heavy lifting thanks to steady backlogs and resilient demand. Boeing, however, is clearly dragging the fund, as ongoing operational and financial troubles keep its stock under pressure. L3Harris and Northrop Grumman have been mixed to lagging, adding some turbulence, while Parker Hannifin and Howmet Aerospace are rising and help offset the weaker names. A small but notable stake in Israel’s Elbit Systems adds a global twist to this otherwise U.S.-centric play.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 RTX | RTX | 9.37% | $688.63M | $258.92B | 20.30% | 74Outperform |
 GE | GE Aerospace | 8.69% | $639.02M | $322.97B | -0.93% | 72Outperform |
 BA | Boeing | 8.91% | $655.31M | $151.29B | -12.15% | 54Neutral |
 LMT | Lockheed Martin | 8.60% | $632.07M | $126.53B | 8.46% | 70Outperform |
 GD | General Dynamics | 5.38% | $395.62M | $92.38B | 2.15% | 80Outperform |
 NOC | Northrop Grumman | 5.19% | $381.57M | $72.54B | -11.30% | 76Outperform |
 HWM | Howmet Aerospace | 3.86% | $283.91M | $87.75B | 9.93% | 67Neutral |
 HONA | Honeywell Aerospace | 3.93% | $288.92M | $50.68B | -20.05% | ―― |
 LHX | L3Harris Technologies | 3.95% | $290.42M | $45.41B | -14.38% | 70Neutral |
 PH | Parker Hannifin | 3.63% | $266.57M | $121.86B | 27.65% | 79Outperform |
PPA Technical Analysis
Price Trends
Market Momentum
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 155.18 is below the 20-day moving average (MA) of 155.64, below the 50-day MA of 163.58, and below the 200-day MA of 170.65, indicating a bearish trend. The MACD of -2.10 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPA.
PPA Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| PPA | $155.18 | $176.00(13.42% Upside) | $7.39B | 0.58% | 68Neutral |
 AIRR | $98.45 | $146.58(48.88% Upside) | $8.51B | 0.69% | 66Neutral |
 VIS | $319.09 | $404.19(26.67% Upside) | $7.66B | 0.09% | 70Outperform |
 XAR | $222.16 | $335.27(50.91% Upside) | $5.06B | 0.35% | 66Neutral |
 FIDU | $88.28 | $111.67(26.49% Upside) | $2.26B | 0.08% | 70Outperform |
 IYT | $79.86 | $100.27(25.56% Upside) | $1.90B | 0.37% | 71Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PPA | Invesco Aerospace & Defense ETF | 155.18 | 1.46 | 0.95% | |
| AIRR | First Trust RBA American Industrial Renaissance ETF | 98.45 | 3.46 | 3.64% | |
| VIS | Vanguard Industrials ETF | 319.09 | 27.15 | 9.30% | |
| XAR | SPDR S&P Aerospace & Defense ETF | 222.16 | -14.84 | -6.26% | |
| FIDU | Fidelity MSCI Industrial Index ETF | 88.28 | 7.61 | 9.44% | |
| IYT | iShares US Transportation ETF | 79.86 | 9.54 | 13.57% |
This 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.