IVV vs PPA
iShares Core S&P 500 ETF vs Invesco Aerospace & Defense ETF
Quick Verdict
IVV has a lower expense ratio. PPA delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | PPA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.58% | |
| AUM | $907.0B | $8.7B | |
| Dividend Yield | 1.10% | 0.37% | |
| Holdings | 508 | 63 | |
| YTD Return | +14.29% | +14.98% | |
| 1Y Return | +21.79% | +26.48% | |
| 3Y Return (annualized) | +22.19% | +30.70% | |
| 5Y Return (annualized) | +13.28% | +20.89% | |
| Volatility (annualized) | 15.1% | 18.3% | |
| Max Drawdown | -56.5% | -57.8% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Oct 26, 2005 |
IVV vs PPA Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco Aerospace & Defense ETF (PPA) is a ETF from Invesco (US). Over the past year IVV returned +21.79% while PPA returned +26.48%. Year to date, IVV is up 14.29% versus a gain of 14.98% for PPA.
Over three years, IVV compounded at +22.19% per year against +30.70% for PPA; over five years the annualized figures are +13.28% and +20.89% respectively. Across the full 21-year window we track, PPA has the edge at +13.03% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PPA has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -57.8% for PPA. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while PPA charges 0.58%. On a $10,000 position that is $3 vs $58 annually, a gap of $55 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 0.37% for PPA.
Holdings Overlap
IVV and PPA share 20 holdings out of 547 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PPA?
IVV has an expense ratio of 0.03% while PPA charges 0.58%. IVV is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, IVV or PPA?
Over the past year IVV returned +21.79% vs +26.48% for PPA, so PPA leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +7.06% vs +13.03% for PPA. Past performance does not guarantee future results.
Which is riskier, IVV or PPA?
PPA has been the more volatile fund at 18.3% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PPA -57.8%.
Should I hold both IVV and PPA?
IVV and PPA have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PPA?
IVV and PPA share 20 common holdings with a 3.4% weight overlap. Combined, they hold 547 unique securities.
Which pays a higher dividend, IVV or PPA?
IVV yields 1.10% while PPA yields 0.37%, so IVV currently pays the higher dividend yield.
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