Looking for an Aerospace and Defense ETF? Compare Funds From Invesco and First Trust
Sector allocations and fund structure reveal key differences for investors weighing exposure to defense and technology themes.
Overview
The aerospace and defense sector often serves as a unique industrial niche, blending long-term government contracts with high-stakes engineering. Investors may look to this space for defense-budget stability or the growth potential of commercial air travel and space exploration. The Invesco Aerospace & Defense ETF (NYSEMKT:PPA) provides a larger, more established vehicle with a lower expense ratio than the First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL).
While both ETFs offer concentrated exposure to the defense industry, the Invesco fund's massive assets under management (AUM) and nearly two-decade history provide liquidity and institutional presence that the newer First Trust offering has yet to match.
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.