PPA vs VOO
Invesco Aerospace & Defense ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. PPA delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PPA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.03% | |
| AUM | $8.7B | $997.4B | |
| Dividend Yield | 0.37% | 1.08% | |
| Holdings | 63 | 509 | |
| YTD Return | +14.98% | +14.27% | |
| 1Y Return | +26.48% | +21.79% | |
| 3Y Return (annualized) | +30.70% | +22.19% | |
| 5Y Return (annualized) | +20.89% | +13.28% | |
| Volatility (annualized) | 18.3% | 14.2% | |
| Max Drawdown | -57.8% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 26, 2005 | Sep 7, 2010 |
PPA vs VOO Performance
Invesco Aerospace & Defense ETF (PPA) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PPA returned +26.48% while VOO returned +21.79%. Year to date, PPA is up 14.98% versus a gain of 14.27% for VOO.
Over three years, PPA compounded at +30.70% per year against +22.19% for VOO; over five years the annualized figures are +20.89% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs +13.03%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PPA charges 0.58% per year while VOO charges 0.03%. On a $10,000 position that is $58 vs $3 annually, a gap of $55 per year that compounds over a long holding period. On income, PPA currently yields 0.37% against 1.08% for VOO.
Holdings Overlap
PPA and VOO share 21 holdings out of 546 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PPA or VOO?
PPA has an expense ratio of 0.58% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, PPA or VOO?
Over the past year PPA returned +26.48% vs +21.79% for VOO, so PPA leads on 1-year performance. Over the longest common window we track (16 years), PPA annualized +13.03% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, PPA or VOO?
PPA has been the more volatile fund at 18.3% annualized versus 14.2% for VOO. Worst drawdown: PPA -57.8% vs VOO -34.3%.
Should I hold both PPA and VOO?
PPA and VOO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPA and VOO?
PPA and VOO share 21 common holdings with a 3.7% weight overlap. Combined, they hold 546 unique securities.
Which pays a higher dividend, PPA or VOO?
PPA yields 0.37% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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