PPA - ETF AI Analysis
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Invesco Aerospace & Defense ETF (PPA)
Rating:71Outperform
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the past month, three months, and year to date, indicating solid recent momentum.
Leading Aerospace & Defense Holdings
Top positions like Boeing, Lockheed Martin, and other major defense contractors have generally delivered positive year-to-date results, supporting the fund’s performance.
Large Asset Base
The fund manages a sizable pool of assets, which can help with trading liquidity and overall fund stability for investors.
Negative Factors
High Sector Concentration
With the vast majority of assets in industrials and a narrow focus on aerospace and defense, the ETF is heavily exposed to downturns in this single industry.
Limited Geographic Diversification
Almost all holdings are in U.S. companies, offering very little exposure to other regions and their potential growth.
Above-Average Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are eaten up by fees over time.
PPA vs. SPDR S&P 500 ETF (SPY)
AUM8.01B
RegionNorth America
Expense Ratio0.58%
Beta0.96
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. Volume313,660
30 Day Avg. Volume316,761
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
208.91Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering61
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PPA Summary
PPA is the Invesco Aerospace & Defense ETF, which follows the SPADE Defense Index. It invests mainly in U.S. companies that build airplanes, weapons systems, and related technology for governments and airlines. Well-known holdings include Boeing and Lockheed Martin. Someone might invest in PPA to get focused exposure to the aerospace and defense theme, which can benefit from long-term defense spending and ongoing demand for air travel and technology. A key risk is that it is heavily concentrated in one sector, so its price can swing more than the overall market if defense or aerospace stocks fall out of favor.
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 hitched to the U.S. aerospace and defense engine, with heavy exposure to industrial giants. Lockheed Martin, Northrop Grumman, and L3Harris have been steady climbers, helping pull the fund higher on the back of strong backlogs and defense spending. RTX and Honeywell are also contributing, though their momentum is more measured. On the flip side, GE Aerospace and Boeing have been lagging, acting like a bit of drag on the portfolio. While mostly U.S.-focused, Elbit Systems adds a small but notably strong international spark.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Lockheed Martin | 9.09% | $735.82M | $143.62B | 40.22% | 70 Outperform | |
| RTX | 8.63% | $698.69M | $261.75B | 45.16% | 74 Outperform | |
| GE Aerospace | 7.74% | $626.88M | $311.04B | 43.01% | 72 Outperform | |
| Boeing | 7.56% | $612.43M | $156.76B | 11.80% | 54 Neutral | |
| Northrop Grumman | 6.21% | $502.49M | $98.10B | 36.30% | 76 Outperform | |
| General Dynamics | 5.08% | $411.30M | $95.31B | 30.76% | 80 Outperform | |
| L3Harris Technologies | 4.44% | $359.83M | $65.75B | 66.10% | 70 Neutral | |
| Howmet Aerospace | 4.32% | $350.10M | $96.88B | 80.12% | 67 Neutral | |
| Honeywell International | 4.29% | $347.60M | $143.53B | 5.94% | 77 Outperform | |
| Elbit Systems | 3.59% | $290.60M | ₪130.35B | 131.85% | 73 Outperform |
PPA Technical Analysis
Neutral
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Price Trends
176.66
Negative
165.88
Positive
156.53
Positive
Market Momentum
-1.79
Positive
42.50
Neutral
24.06
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PPA, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 176.75, equal to the 50-day MA of 176.66, and equal to the 200-day MA of 156.53, indicating a neutral trend. The MACD of -1.79 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PPA.
PPA Peer Comparison
Comparison Results
Performance Comparison
PPA
Invesco Aerospace & Defense ETF
167.54
51.36
44.21%
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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IYJ
iShares U.S. Industrials ETF
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MISL
First Trust Indxx Aerospace & Defense 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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