ITA vs PPA ETF Comparison: AI Score, Valuation, Performance and Upside
ITA and PPA both cover aerospace and defense, differing mainly in breadth and weighting. ITA concentrates in the largest aerospace and prime defense contractors, giving it more commercial aircraft exposure. PPA holds a broader roster including defense electronics and government technology services, which spreads exposure across more of the supply chain.
Use this ITA vs PPA comparison to decide how much commercial aerospace you want mixed into a defense allocation. Commercial aviation follows airline profitability and travel demand, which is a different cycle from government procurement. A broader roster dilutes that and adds supplier and services exposure instead.
ITA holds the edge across 3 of 5 key metrics in this comparison. PPA has delivered stronger 1-year price return (+6.13% vs +5.53% for ITA).
- Want concentrated exposure to the largest aerospace and defense companies
- Are comfortable with substantial commercial aerospace weighting
- Prefer maximum liquidity within the industry
- Accept significant single-holding concentration
- Want broader coverage across primes, suppliers, and defense services
- Prefer less dependence on commercial aircraft production
- Value exposure to defense electronics and government technology spending
- Accept smaller holdings and a higher expense than the cheapest alternatives
| Metric | ITA | PPA |
|---|---|---|
| ETF scorei | 57.0 | 58.0 |
| Latest closei | $213.81 | $159.32 |
| 1M returni | -9.44% | -7.31% |
| 6M returni | -0.85% | -2.71% |
| 1Y returni | +5.53% | +6.13% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ITA | PPA |
|---|---|---|
| 1Y ago | $10.58K (+5.8%) started 2025-09-25 | $10.66K (+6.6%) started 2025-09-25 |
| 5Y ago | $21.75K (+117.5%) started 2021-09-27 | $23.21K (+132.1%) started 2021-09-27 |
| 10Y ago | $40.76K (+307.6%) started 2016-09-26 | $48.56K (+385.6%) started 2016-09-26 |
Hypothetical — past performance does not guarantee future results.
| Metric | ITA | PPA |
|---|---|---|
| Expense ratioi | 0.37% | 0.58% |
| Total assets (AUM)i | $13.63B | $8.03B |
| Dividend yieldi | 0.47% | 0.38% |
| Trailing P/Ei | 32.45 | 30.87 |
| Betai | 0.79 | 0.77 |
| 52-week change | 5.53% | 6.13% |
| Metric | ITA | PPA |
|---|---|---|
| 1Y returni | +5.53% | +6.13% |
| 6M returni | -0.85% | -2.71% |
| 1M returni | -9.44% | -7.31% |
| 1Y Sharpe ratio | 0.16 | 0.18 |
| Betai | 0.79 | 0.77 |
| Dividend yieldi | 0.47% | 0.38% |
| 5Y CAGR | +15.89% | +17.58% |
Over the past year, ITA and PPA have moved strongly in the same direction (correlation of 0.97), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | ITA | PPA |
|---|---|---|---|
| 1Y | Growthi | +5.53% | +6.13% |
| CAGRi | +5.54% | +6.14% | |
| Volatilityi | 23.22% | 21.58% | |
| Sharpe ratioi | 0.16 | 0.18 | |
| Sortino ratioi | 0.22 | 0.26 | |
| Max drawdowni | 15.88% | 13.98% | |
| Current drawdowni | 15.47% | 13.81% | |
| Avg drawdowni | 5.90% | 5.29% | |
| Ulcer Indexi | 7.40% | 6.53% | |
| Max daily dropi | 3.78% | 3.79% | |
| Max wkly dropi | 7.09% | 6.76% | |
| 5Y | Growthi | +108.88% | +124.55% |
| CAGRi | +15.89% | +17.58% | |
| Volatilityi | 20.32% | 18.87% | |
| Sharpe ratioi | 0.61 | 0.72 | |
| Sortino ratioi | 0.88 | 1.05 | |
| Max drawdowni | 18.72% | 18.37% | |
| Current drawdowni | 15.47% | 13.81% | |
| Avg drawdowni | 4.17% | 3.79% | |
| Ulcer Indexi | 5.86% | 5.39% | |
| Max daily dropi | 8.44% | 7.36% | |
| Max wkly dropi | 11.69% | 9.85% | |
| 10Y | Growthi | +266.54% | +346.97% |
| CAGRi | +13.88% | +16.16% | |
| Volatilityi | 23.36% | 20.87% | |
| Sharpe ratioi | 0.48 | 0.61 | |
| Sortino ratioi | 0.68 | 0.86 | |
| Max drawdowni | 51.00% | 43.92% | |
| Current drawdowni | 15.47% | 13.81% | |
| Avg drawdowni | 7.26% | 5.09% | |
| Ulcer Indexi | 11.48% | 8.41% | |
| Max daily dropi | 14.74% | 12.44% | |
| Max wkly dropi | 25.96% | 21.90% |
| Category | ITA | PPA |
|---|---|---|
| Fund name | iShares U.S. Aerospace & Defense ETF | Invesco Aerospace & Defense ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.37% | 0.58% |
| Total assets (AUM)i | $13.63B | $8.03B |
| Dividend yieldi | 0.47% | 0.38% |
- Concentrated in the largest and most established aerospace and defense names
- Substantial commercial aerospace exposure benefits from air travel and fleet renewal
- High liquidity within a relatively narrow industry
- Broader roster spanning primes, suppliers, electronics, and government services
- Includes defense technology and services businesses tied to government IT spending
- Somewhat less dependent on the largest commercial aerospace holdings
- Heavy concentration means single-company problems affect the fund materially
- Commercial aerospace exposure adds airline cycle sensitivity to defense holdings
- Narrow industry focus offers limited diversification
- Still a narrow industry fund exposed to government budget decisions
- Broader roster includes smaller companies with less pricing power
- Costs more than the cheapest sector alternatives
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