The Invesco Aerospace & Defense ETF (PPA) is an exchange-traded fund designed to track the performance of U.S. companies operating in the aerospace and defense industries. The ETF is managed by Invesco and trades under the ticker PPA on the NYSE Arca.

Classified as a sector equity ETF, the fund invests in companies involved in the development, manufacturing, and supply of aircraft, military equipment, defense systems, aerospace technology, electronic components, and related services. 

Its strategy provides exposure to an industry driven by both commercial demand and government defense spending. The ETF follows a passive management approach and seeks to replicate the performance of the NYSE FactSet Global Aerospace & Defense Index, a benchmark composed of companies primarily engaged in the aerospace and defense industries.

Diversification and sector exposure

PPA provides exposure primarily associated with:

• Aerospace.

• Defense.

• Industrials.

• Military equipment.

• Aviation.

• Defense technology.

• National security.

• U.S. equity market.

The portfolio includes large- and mid-cap companies engaged in manufacturing commercial and military aircraft, defense systems, engines, electronics, satellites, aerospace components, and engineering services.

The ETF's performance reflects developments across the aerospace and defense industries, influenced by both commercial aviation cycles and government investment in national security.

Structure and costs

PPA shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Invesco Aerospace & Defense ETF was launched in 2005 to provide investors with a diversified, exchange-traded vehicle for gaining exposure to the aerospace and defense industries.

Since inception, the fund has tracked the evolution of the sector, including the expansion of commercial aviation, military modernization, advances in space technologies, and increased investment in national security.

In recent years, rising global defense expenditures, growth in the commercial space industry, modernization of military equipment, and heightened geopolitical tensions have continued to support the performance of the companies represented in the ETF's portfolio.

Additional Information

Invesco Aerospace & Defense ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $7.52 billion.

Over the past 12 months, Invesco Aerospace & Defense ETF recorded a return of 2.42%, with its price trading between $146.12 and $185.59 during the same period.

The ETF is traded under the ticker PPA.