PPA vs VXUS
Invesco Aerospace & Defense ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | PPA | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.05% | |
| AUM | $8.7B | $158.1B | |
| Dividend Yield | 0.37% | 2.59% | |
| Holdings | 63 | 8,747 | |
| YTD Return | +14.98% | +15.22% | |
| 1Y Return | +26.48% | +26.86% | |
| 3Y Return (annualized) | +30.70% | +20.34% | |
| 5Y Return (annualized) | +20.89% | +9.38% | |
| Volatility (annualized) | 18.3% | 15.1% | |
| Max Drawdown | -57.8% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 26, 2005 | Jan 26, 2011 |
PPA vs VXUS Performance
Invesco Aerospace & Defense ETF (PPA) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PPA returned +26.48% while VXUS returned +26.86%. Year to date, PPA is up 14.98% versus a gain of 15.22% for VXUS.
Over three years, PPA compounded at +30.70% per year against +20.34% for VXUS; over five years the annualized figures are +20.89% and +9.38% respectively. Across the full 16-year window we track, PPA has the edge at +13.03% annualized vs +4.89%. 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 VXUS. 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 -39.9% for VXUS. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PPA charges 0.58% per year while VXUS charges 0.05%. On a $10,000 position that is $58 vs $5 annually, a gap of $53 per year that compounds over a long holding period. On income, PPA currently yields 0.37% against 2.59% for VXUS.
Holdings Overlap
PPA and VXUS share 2 holdings out of 7929 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PPA or VXUS?
PPA has an expense ratio of 0.58% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, PPA or VXUS?
Over the past year PPA returned +26.48% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PPA annualized +13.03% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, PPA or VXUS?
PPA has been the more volatile fund at 18.3% annualized versus 15.1% for VXUS. Worst drawdown: PPA -57.8% vs VXUS -39.9%.
Should I hold both PPA and VXUS?
PPA and VXUS have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPA and VXUS?
PPA and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 7929 unique securities.
Which pays a higher dividend, PPA or VXUS?
PPA yields 0.37% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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