PPA - AI Analysis

Compare

Top Page

Invesco Aerospace & Defense ETF (PPA)

Rating:71Outperform

Price Target:

$171.00

The Invesco Aerospace & Defense ETF (PPA) has a solid overall rating, reflecting the strong performance of several key holdings. General Electric (GE) stands out with its robust financials, positive earnings call, and growth prospects, which significantly boost the fund's rating. Similarly, Lockheed Martin (LMT) contributes positively with its strong financial performance, contract wins, and dividend yield. However, Boeing (BA) has weaker financials and valuation concerns, which may slightly weigh on the ETF's overall score. Investors should note the fund's concentration in the aerospace and defense sector, which could pose risks during industry downturns.

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)

AUM6.90B

RegionNorth America

Expense Ratio0.58%

Beta0.93

IssuerInvesco

Inception DateOct 26, 2005

Dividend Yield0.62%

Asset ClassEquity

Index TrackedSPADE Defense Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume161,868

30 Day Avg. Volume191,734

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

174.77

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering62

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 flying high on the strength of names like GE Aerospace and General Dynamics, which are benefiting from robust financial performance and bullish momentum. Northrop Grumman and L3Harris Technologies are also steady contributors, driven by strategic growth initiatives and solid earnings. However, Honeywell International is dragging the fund slightly, with bearish technical signals and recent underperformance. With a heavy concentration in U.S.-based industrials and defense contractors, this ETF is firmly anchored in the Aerospace & Defense sector, offering investors a focused play on innovation and national security.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RTX	RTX	8.42%	$574.89M	$237.88B	46.64%	75 Outperform
GE	GE Aerospace	7.81%	$533.31M	$327.78B	80.90%	77 Outperform
BA	Boeing	7.14%	$487.34M	$152.08B	34.00%	47 Neutral
LMT	Lockheed Martin	6.99%	$476.85M	$113.32B	-10.32%	70 Outperform
NOC	Northrop Grumman	5.06%	$345.52M	$82.58B	13.67%	75 Outperform
GD	General Dynamics	4.77%	$325.88M	$93.10B	18.19%	80 Outperform
HON	Honeywell International	4.16%	$283.69M	$127.05B	3.50%	79 Outperform
HWM	Howmet Aerospace	4.05%	$276.56M	$81.34B	102.34%	79 Outperform
LHX	L3Harris Technologies	4.02%	$274.11M	$55.36B	19.57%	71 Outperform
PH	Parker Hannifin	3.24%	$220.96M	$97.99B	22.12%	75 Outperform

PPA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

152.60

Positive

100DMA

147.66

Positive

200DMA

134.02

Positive

Market Momentum

MACD

1.55

Positive

RSI

56.74

Neutral

STOCH

66.08

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 156.58, equal to the 50-day MA of 152.60, and equal to the 200-day MA of 134.02, indicating a bullish trend. The MACD of 1.55 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 66.08 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
PPA	―	―	$6.90B	0.58%	71 Outperform
VIS	―	―	$6.39B	0.09%	70 Outperform
AIRR	―	―	$6.20B	0.70%	71 Outperform
XAR	―	―	$4.87B	0.35%	68 Neutral
FXR	―	―	$1.83B	0.61%	70 Outperform
IYJ	―	―	$1.75B	0.38%	73 Outperform

Performance Comparison

PPA

Invesco Aerospace & Defense ETF

157.87

44.35

39.07%

VIS

Vanguard Industrials ETF

―

AIRR

First Trust RBA American Industrial Renaissance ETF

―

XAR

SPDR S&P Aerospace & Defense ETF

―

FXR

First Trust Industrials/Producer Durables AlphaDEX Fund

―

IYJ

iShares U.S. Industrials ETF

―

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: ―

Table of Contents