PPA vs VYM
Invesco Aerospace & Defense ETF vs Vanguard High Dividend Yield ETF
Which is better, PPA or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. PPA led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% 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 | VYM |
|---|---|---|
| Expense Ratio | 0.58% | 0.04%Best |
| AUM | $8.2B | $81.6B |
| Dividend Yield | 0.37% | 2.24% |
| Holdings | 63 | 613 |
| YTD Return | +2.61% | +14.82%Best |
| 1Y Return | +12.63% | +20.84%Best |
| 3Y Return (annualized) | +25.90%Best | +18.64% |
| 5Y Return (annualized) | +18.53%Best | +12.28% |
| Volatility (annualized) | 18.7% | 14.5%Best |
| Max Drawdown | -57.8%Best | -58.8% |
| $10,000 over 5 years | $23,396Best | $17,845 |
| Top 10 Weight | 53.6% | 25.9%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Oct 26, 2005 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).
PPA vs VYM 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 19.8 years both funds cover.
PPA vs VYM Performance
Invesco Aerospace & Defense ETF (PPA) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PPA returned +12.63% while VYM returned +20.84%. Year to date, PPA is up 2.61% versus a gain of 14.82% for VYM.
Over three years, PPA compounded at +25.90% per year against +18.64% for VYM; over five years the annualized figures are +18.53% and +12.28% respectively. Across the full 20-year window we track, PPA has the edge at +11.98% annualized vs +7.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PPA has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.5% for VYM. 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 -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PPA charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, PPA currently yields 0.37% against 2.24% for VYM.
Holdings Overlap
28.2% of PPA's money is in holdings VYM also owns. 2.5% of VYM's money is in holdings PPA also owns.
PPA and VYM share little of their money.
11 positions in common, counted across the 62 positions we hold weights for in PPA and 603 in VYM, against full books of 63 and 613.
What only one of them owns
Our book lists 559 positions for VYM that do not appear in our book for PPA (95.0% of the fund), and 49 for PPA that do not appear in VYM (67.5%).
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 VYM | Difference |
|---|---|---|---|
| LMTLockheed Martin Corp | 6.38% | 0.43% | 5.95% |
| GDGeneral Dynamics Corp. | 4.76% | 0.38% | 4.38% |
| NOCNorthrop Grumman Corp. | 4.59% | 0.28% | 4.31% |
| HONAHoneywell Aerospace Inc | 4.07% | 0.29% | 3.78% |
| LHXL3Harris Technologies Inc. | 3.74% | 0.22% | 3.52% |
| ETNEaton Corp Plc | 2.19% | 0.69% | 1.50% |
| HIIHuntington Ingalls Industries Inc. | 1.08% | 0.05% | 1.03% |
| BAHBooz Allen Hamilton Holding Corp. | 0.63% | 0.03% | 0.60% |
| SAICScience Applications International Corp | 0.34% | 0.02% | 0.32% |
| OSKOshkosh Corp. | 0.29% | 0.04% | 0.25% |
28.2% of PPA is already inside VYM.
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 VYM?
PPA has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, PPA or VYM?
Over the past year PPA returned +12.63% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PPA annualized +11.98% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PPA or VYM?
PPA has been the more volatile fund at 18.7% annualized versus 14.5% for VYM. Worst drawdown: PPA -57.8% vs VYM -58.8%.
Should I hold both PPA and VYM?
PPA and VYM have a monthly-return correlation of 0.82, 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 VYM?
28.2% of PPA's money is in holdings VYM also owns. 2.5% of VYM's is in holdings PPA also owns. They hold 11 positions in common, counted across the 62 positions we hold weights for in PPA and 603 in VYM.
Which pays a higher dividend, PPA or VYM?
PPA yields 0.37% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than PPA?
VYM has a lower expense ratio. PPA led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% 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.