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PPA - ETF AI Analysis
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Invesco Aerospace & Defense ETF (PPA)
Rating:71Outperform
Price Target:
$166.00
Positive Factors
Strong Top Holdings
Several of the largest positions, such as GE Aerospace and Howmet Aerospace, have delivered strong year-to-date performance, supporting the ETF’s overall gains.
Sector Focus on Industrials
The ETF’s heavy exposure to the aerospace and defense industries aligns with sectors that have shown resilience and growth potential.
Healthy Asset Base
With over $6.5 billion in assets under management, the fund benefits from strong investor interest and stability.
Negative Factors
High Geographic Concentration
The ETF is overwhelmingly focused on U.S. companies, offering limited diversification across global markets.
Underperforming Holdings
Some holdings, like Honeywell International and Lockheed Martin, have shown weak or negative year-to-date performance, which could drag on returns.
Above-Average Expense Ratio
The fund’s expense ratio of 0.58% is higher than many passive ETFs, potentially reducing net returns for investors.
PPA vs. SPDR S&P 500 ETF (SPY)
AUM6.34B
RegionNorth America
Expense Ratio0.58%
Beta0.95
IssuerInvesco
Inception DateOct 26, 2005
Dividend Yield0.66%
Asset ClassEquity
Index TrackedSPADE Defense Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume178,318
30 Day Avg. Volume181,422
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
178.02Price 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) is an investment fund that focuses on companies in the aerospace and defense industry. It follows the SPADE Defense Index, which includes businesses like Boeing and Lockheed Martin that manufacture aircraft, defense systems, and advanced technologies. This ETF is a good option for investors looking to diversify their portfolio with exposure to a sector tied to national security and global defense spending, which tends to grow over time. However, new investors should know that the fund’s performance can be affected by changes in government defense budgets and geopolitical events.
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
The Invesco Aerospace & Defense ETF (PPA) is heavily anchored in U.S.-based industrial giants, with a clear focus on aerospace and defense. Boeing’s recent struggles, marked by weak financial performance and bearish momentum, are dragging on the fund, while Lockheed Martin’s mixed results show promise but face headwinds from declining margins. On the brighter side, Howmet Aerospace is rising steadily, driven by strong revenue growth and strategic initiatives, and General Dynamics offers stability with robust cash flow and a healthy backlog. Overall, the fund leans heavily into the defense sector, with innovation and government contracts shaping its trajectory.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| RTX | 8.68% | $550.43M | $227.50B | 40.50% | 75 Outperform | |
| GE Aerospace | 7.79% | $493.85M | $303.20B | 58.68% | 77 Outperform | |
| Lockheed Martin | 7.08% | $449.18M | $106.62B | -15.02% | 70 Outperform | |
| Boeing | 6.91% | $438.20M | $136.59B | 20.37% | 44 Neutral | |
| Northrop Grumman | 5.34% | $338.80M | $80.88B | 14.05% | 75 Outperform | |
| General Dynamics | 5.08% | $322.15M | $91.93B | 20.77% | 80 Outperform | |
| Howmet Aerospace | 4.27% | $270.72M | $79.32B | 66.56% | 77 Outperform | |
| Honeywell International | 4.25% | $269.70M | $120.64B | -17.06% | 79 Outperform | |
| L3Harris Technologies | 4.06% | $257.61M | $51.96B | 11.94% | 70 Neutral | |
| Parker Hannifin | 3.78% | $239.83M | $105.94B | 18.77% | 77 Outperform |
PPA Technical Analysis
Negative
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Price Trends
153.91
Negative
149.89
Negative
136.40
Positive
Market Momentum
-2.00
Positive
30.11
Neutral
11.20
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 153.52, equal to the 50-day MA of 153.91, and equal to the 200-day MA of 136.40, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.20 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
146.28
27.12
22.76%
VIS
Vanguard Industrials ETF
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AIRR
First Trust RBA American Industrial Renaissance ETF
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XAR
SPDR S&P Aerospace & Defense ETF
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FXR
First Trust Industrials/Producer Durables AlphaDEX Fund
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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.
Disclaimer
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.Date of analysis: ―
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