PPA vs QQQ
Invesco Aerospace & Defense ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PPA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $8.7B | $496.3B | |
| Dividend Yield | 0.37% | 0.44% | |
| Holdings | 63 | 108 | |
| YTD Return | +13.40% | +17.30% | |
| 1Y Return | +24.85% | +24.93% | |
| 3Y Return (annualized) | +30.56% | +26.19% | |
| 5Y Return (annualized) | +20.94% | +15.34% | |
| Volatility (annualized) | 18.3% | 30.6% | |
| Max Drawdown | -57.8% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 26, 2005 | Mar 10, 1999 |
PPA vs QQQ Performance
Invesco Aerospace & Defense ETF (PPA) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PPA returned +24.85% while QQQ returned +24.93%. Year to date, PPA is up 13.40% versus a gain of 17.30% for QQQ.
Over three years, PPA compounded at +30.56% per year against +26.19% for QQQ; over five years the annualized figures are +20.94% and +15.34% respectively. Across the full 21-year window we track, QQQ has the edge at +13.06% annualized vs +12.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.3% for PPA. 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 -57.8% for PPA and -83.0% for QQQ. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PPA charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, PPA currently yields 0.37% against 0.44% for QQQ.
Holdings Overlap
PPA and QQQ share 5 holdings out of 159 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PPA or QQQ?
PPA has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, PPA or QQQ?
Over the past year PPA returned +24.85% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), PPA annualized +12.95% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, PPA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.3% for PPA. Worst drawdown: PPA -57.8% vs QQQ -83.0%.
Should I hold both PPA and QQQ?
PPA and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPA and QQQ?
PPA and QQQ share 5 common holdings with a 2.0% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, PPA or QQQ?
PPA yields 0.37% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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