Summary
- The Invesco Aerospace & Defense ETF is a well-established U.S. Aerospace & Defense ETF tracking the SPADE Defense Index. Its expense ratio is 0.58% and the fund currently has $6.5B in assets under management.
- Investing in Aerospace & Defense stocks has been a successful strategy over the last 20 years. Long-term spending trends, with expenditures exceeding $1.1T in 2025, support the sector’s long-term growth.
- PPA curren…
Summary
- The Invesco Aerospace & Defense ETF is a well-established U.S. Aerospace & Defense ETF tracking the SPADE Defense Index. Its expense ratio is 0.58% and the fund currently has $6.5B in assets under management.
- Investing in Aerospace & Defense stocks has been a successful strategy over the last 20 years. Long-term spending trends, with expenditures exceeding $1.1T in 2025, support the sector’s long-term growth.
- PPA currently offers exposure to 59 companies, selected and weighted based on their reflection of and importance to the U.S. defense sector. Top holdings include RTX and Lockheed Martin.
- Historically, PPA has consistently offered better downside risk-adjusted returns than peers like ITA and XAR, and it has also beaten the S&P 500 Index during bull and bear markets.
- PPA’s historical performance and current fundamentals suggest it’s one of the safer U.S. Aerospace & Defense ETFs over the medium/long-term, though some investors may have more short-term success with XAR.
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Introduction
This article introduces the Invesco Aerospace & Defense ETF (PPA), which, according to its website, is a $6.5B fund holding companies "involved in the development, manufacturing, operations and support of US defense, homeland security and aerospace operations." Due to its nature, you might expect
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