Which Aerospace & Defense ETF Is a Better Buy: Big Bets or Broad Exposure?
ITA boasts lower costs and stronger 1-year returns, while PPA delivers broader diversification and superior 5-year growth.
Overview
The iShares U.S. Aerospace & Defense ETF (CBOE:ITA) offers a significantly lower expense ratio and higher 1-year performance, while the Invesco Aerospace & Defense ETF (NYSEMKT:PPA) provides broader diversification and higher five-year cumulative growth.
Both funds serve as primary vehicles for investors seeking exposure to the United States defense and aviation industries. While they track similar sectors, their differing weighting methodologies and cost structures result in distinct risk-return profiles for long-term shareholders.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.