Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the Invesco Aerospace & Defense ETF (PPA) is a passively managed exchange traded fund launched on October 26, 2005.
Looking for broad exposure to the Industrials - Aerospace & Defense segment of the equity market? You should consider the Invesco Aerospace & Defense ETF (PPA), a passively managed exchange traded fund launched on October 26, 2005.
The decisive, lethal, and comparatively brief strategic military strikes executed by President Trump and Secretary of War Hegseth have once again elevated the profile of US military supremacy.
Launched on October 26, 2005, the Invesco Aerospace & Defense ETF (PPA) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Aerospace & Defense segment of the equity market.
The Invesco Aerospace & Defense ETF ( NYSEARCA:PPA ) has crushed the broader market over the past year, delivering 44% returns compared to the S&P 500's 16% gain.
Invesco Aerospace & Defense ETF is rated Buy, driven by President Trump's proposed $1.5T defense budget and robust U.S. military actions. PPA consistently outperforms the S&P 500, with a 10-year total return of $50,790 on $10,000 invested, and strong top-10 holdings with long dividend histories. The ETF benefits from U.S. government contracts, increased defense and space spending, and a diversified, low-turnover portfolio of established industry leaders.
In the last three months of 2025, the tech sector experienced what some called a “correction”.
Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the Invesco Aerospace & Defense ETF (PPA) is a passively managed exchange traded fund launched on October 26, 2005.
The Invesco Aerospace & Defense ETF earns a strong buy rating for its superior diversification and risk-adjusted returns vs. the iShares U.S. Aerospace & Defense ETF. PPA's modified market-cap approach reduces concentration risk, capturing growth from mid-cap and specialized defense suppliers overlooked by ITA's top-heavy portfolio. Despite a higher 0.58% expense ratio, PPA delivers better long-term Sharpe ratios, lower volatility, and trades at cheaper valuations (P/E 26.98 vs. ITA's 30.76).
Geopolitical tensions and rising global defense budgets are driving sustained demand for military equipment, benefiting leading defense contractors and the Invesco Aerospace & Defense ETF. U.S. and NATO commitments to significantly increase defense spending through 2035 create a strong tailwind for the sector and PPA's top holdings. PPA's long-term bullish trend, resilient performance after corrections, and high Seeking Alpha ETF grades reinforce its investment appeal.
Invesco Aerospace & Defense ETF is a strong long-term play, but recent gains make it overbought; I recommend waiting for a pullback. Global defense spending is rising, especially in Europe, and the potential Golden Dome project could drive a multi-year sector boom. Key holdings like Boeing, Lockheed Martin, and L3Harris stand to benefit, but valuations are stretched; Lockheed Martin offers the best value now.
Looking for broad exposure to the Industrials - Aerospace & Defense segment of the equity market? You should consider the Invesco Aerospace & Defense ETF (PPA), a passively managed exchange traded fund launched on 10/26/2005.