ARK Space and Defense Rockets Past Invesco Aerospace and Defense. Which ETF is Better?
Contrasting strategies shape risk and sector exposure for these aerospace funds, with one emphasizing stability and the other targeting disruptive innovation.
ARK Space and Defense Rockets Past Invesco Aerospace and Defense. Which ETF is Better?
Overview
The Invesco Aerospace & Defense ETF (NYSEMKT:PPA) offers a lower-cost, lower-volatility approach to defense than the ARK Space & Defense Innovation ETF (NYSEMKT:ARKX), which prioritizes high-growth technology companies disrupting the space sector.
Both funds target the expanding aerospace and defense industries but take fundamentally different paths. While ARKX actively hunts for disruptive innovation across space exploration and orbital technologies, PPA follows a more established index-based strategy, favoring traditional U.S. defense contractors and homeland security firms that provide a more stable market profile.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
