PPA vs VOO
Invesco Aerospace & Defense ETF vs Vanguard S&P 500 ETF
Which is better, PPA or VOO?
Mid Cap Blend against Large Cap Blend.
VOO has a lower expense ratio. PPA led over 3Y, 5Y and the full window, VOO over 1Y. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 53.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PPA | VOO |
|---|---|---|
| Expense Ratio | 0.58% | 0.03%Best |
| AUM | $8.2B | $997.4B |
| Dividend Yield | 0.37% | 1.08% |
| Holdings | 63 | 509 |
| YTD Return | +2.61% | +13.37%Best |
| 1Y Return | +12.63% | +20.08%Best |
| 3Y Return (annualized) | +25.90%Best | +21.29% |
| 5Y Return (annualized) | +18.53%Best | +12.89% |
| Volatility (annualized) | 17.3% | 14.1%Best |
| Max Drawdown | -44.3% | -34.3%Best |
| $10,000 over 5 years | $23,396Best | $18,335 |
| Top 10 Weight | 53.6% | 36.4%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Oct 26, 2005 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
PPA vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16 years both funds cover.
PPA vs VOO Performance
Invesco Aerospace & Defense ETF (PPA) is an ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PPA returned +12.63% while VOO returned +20.08%. Year to date, PPA is up 2.61% versus a gain of 13.37% for VOO.
Over three years, PPA compounded at +25.90% per year against +21.29% for VOO; over five years the annualized figures are +18.53% and +12.89% respectively. Across the full 16-year window we track, PPA has the edge at +15.70% annualized vs +13.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PPA has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.1% 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 -44.3% for PPA and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
71.4% of PPA's money is in holdings VOO also owns. 3.6% of VOO's money is in holdings PPA also owns.
Most of PPA is already inside VOO. Owning both mostly buys the same companies twice.
20 positions in common, counted across the 62 positions we hold weights for in PPA and 505 in VOO, against full books of 63 and 509.
What only one of them owns
Our book lists 477 positions for VOO that do not appear in our book for PPA (95.9% of the fund), and 40 for PPA that do not appear in VOO (24.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PPA | Weight in VOO | Difference |
|---|---|---|---|
| RTXRaytheon Co. | 7.98% | 0.40% | 7.58% |
| GEGeneral Electric Co. | 7.08% | 0.60% | 6.48% |
| BABoeing Co | 7.15% | 0.26% | 6.89% |
| LMTLockheed Martin Corp | 6.38% | 0.16% | 6.22% |
| GDGeneral Dynamics Corp. | 4.76% | 0.14% | 4.62% |
| NOCNorthrop Grumman Corp. | 4.59% | 0.11% | 4.48% |
| HWMHowmet Aerospace Inc. | 4.34% | 0.17% | 4.17% |
| HONAHoneywell Aerospace Inc | 4.07% | 0.11% | 3.96% |
| LHXL3Harris Technologies Inc. | 3.74% | 0.08% | 3.66% |
| PHParker-Hannifin Corp. | 3.56% | 0.19% | 3.37% |
71.4% of PPA is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $55 a year on a $10,000 investment.
Which performed better, PPA or VOO?
Over the past year PPA returned +12.63% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PPA annualized +15.70% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PPA or VOO?
PPA has been the more volatile fund at 17.3% annualized versus 14.1% for VOO. Worst drawdown: PPA -44.3% vs VOO -34.3%.
Should I hold both PPA and VOO?
PPA and VOO have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PPA and VOO?
71.4% of PPA's money is in holdings VOO also owns. 3.6% of VOO's is in holdings PPA also owns. They hold 20 positions in common, counted across the 62 positions we hold weights for in PPA and 505 in VOO.
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.
Is VOO better than PPA?
VOO has a lower expense ratio. PPA led over 3Y, 5Y and the full window, VOO over 1Y. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 53.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.