PPA vs VYM
Invesco Aerospace & Defense ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PPA delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PPA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $8.7B | $81.6B | |
| Dividend Yield | 0.37% | 2.24% | |
| Holdings | 63 | 616 | |
| YTD Return | +14.98% | +16.42% | |
| 1Y Return | +26.48% | +24.22% | |
| 3Y Return (annualized) | +30.70% | +19.03% | |
| 5Y Return (annualized) | +20.89% | +12.21% | |
| Volatility (annualized) | 18.3% | 14.6% | |
| Max Drawdown | -57.8% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 26, 2005 | Nov 10, 2006 |
PPA vs VYM Performance
Invesco Aerospace & Defense ETF (PPA) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PPA returned +26.48% while VYM returned +24.22%. Year to date, PPA is up 14.98% versus a gain of 16.42% for VYM.
Over three years, PPA compounded at +30.70% per year against +19.03% for VYM; over five years the annualized figures are +20.89% and +12.21% respectively. Across the full 20-year window we track, PPA has the edge at +13.03% annualized vs +7.10%. 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 14.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.83. 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
PPA and VYM share 12 holdings out of 653 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $54 per year of difference.
Which performed better, PPA or VYM?
Over the past year PPA returned +26.48% vs +24.22% for VYM, so PPA leads on 1-year performance. Over the longest common window we track (20 years), PPA annualized +13.03% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PPA or VYM?
PPA has been the more volatile fund at 18.3% annualized versus 14.6% 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 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPA and VYM?
PPA and VYM share 12 common holdings with a 2.7% weight overlap. Combined, they hold 653 unique securities.
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.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.