ITA vs PPA: iShares vs Invesco Defense ETF
Two of the three major defense ETFs, with different approaches. ITA is the largest and most liquid. PPA's modified market-cap approach spreads exposure more evenly across prime contractors and mid-cap defense suppliers.
ITA (iShares US Aerospace & Defense) is the largest defense ETF at about $12B AUM, holding 35 US aerospace and defense companies with 0.40% expenses. PPA (Invesco Aerospace & Defense) holds 58 companies at 0.58%, using a modified market-cap approach that reduces the concentration in prime contractors like Lockheed Martin and Raytheon. PPA's broader exposure to mid-cap defense suppliers has historically delivered better Sharpe ratios than ITA's more top-heavy portfolio. In 2025-2026, with NATO members accelerating spending toward higher GDP targets and European defense budgets expanding dramatically, both funds have posted strong returns. PPA's returns have held up slightly better because mid-cap defense companies, including suppliers, munitions makers, and electronics firms, have benefited from the spending surge along with the prime contractors. For investors making a long-term defense allocation, PPA's more balanced construction justifies its higher fee.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 ITA vs PPA: Key Facts Side by Side
| Metric | ITA | PPA |
|---|---|---|
| Fund Name | iShares U.S. Aerospace & Defense ETF | Invesco Aerospace & Defense ETF |
| Issuer | iShares | Invesco |
| Tracks Index | Dow Jones US Select Aerospace & Defense | SPADE Defense Index |
| Expense Ratio | 0.38% ✓ | 0.58% |
| Cost per $10K/yr | $38.00 | $58.00 |
| AUM | $12.1B | $7.4B |
| Holdings | 35 | 58 |
| Inception | 2006 | 2005 |
| 1-Year Return | -2.24% | -1.04% |
| 3-Year Return | +24.59% | +24.01% |
| 5-Year Return | +14.78% | +16.64% |
| Dividend Yield | 0.27% | 0.43% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.03% | 0.04% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
Comparing two ETFs? Grab the free checklist.
The seven things that actually decide a comparison: the index, fee, overlap, tax, liquidity, concentration, and structure. One printable page.
No spam · Unsubscribe anytime · Your download opens instantly
Your download is ready above. We also emailed a confirmation link, click it to get The Expense Report, our weekly ETF newsletter.
📊 ITA vs PPA: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$20/yr per $10K vs PPA
- already use iShares and prefer staying within one fund family
- want broader diversification (58 holdings vs 35)
- already use Invesco and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full ITA vs PPA Comparison → Free · No signup · Instant results❓ ITA vs PPA: Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →