XAR vs PPA ETF comparison
XAR vs PPA
XAR holds 50 U.S. aerospace and defense companies at close to equal weights, so smaller companies count as much as the giants, and PPA holds 68 companies tied to U.S. defense, homeland security and government space work, including some technology and industrial suppliers. Both are aerospace and defense funds, but they follow different indexes.
XAR follows the S&P Aerospace & Defense Select Industry Index, which uses a modified equal weighting. PPA follows the SPADE Defense Index, which covers defense, homeland security and government space companies and weights by size with limits. XAR charges 0.35% and PPA charges 0.58%. This page lines up what each fund holds, how much they overlap, how each performed and what each costs, with the date next to every number.
XAR vs PPA, the short answer
XAR and PPA differ in what they hold and what they charge. Both are aerospace and defense funds, but they follow different indexes. XAR follows the S&P Aerospace & Defense Select Industry Index, which uses a modified equal weighting. PPA follows the SPADE Defense Index, which covers defense, homeland security and government space companies and weights by size with limits.
Expense ratios are 0.35% and 0.58%. NAV total returns, annualized (both to Sep 30, 2026): 1 year -1.59% vs -0.13%; 3 years 27.89% vs 25.37%; 5 years 14.70% vs 17.31%; 10 years 15.59% vs 15.79%. Neither is better for everyone; the choice turns on which theme you want, how concentrated you are willing to be and what you already own.
Want the full picture of one fund before you compare? Read the complete guide for each fund: XAR guide and PPA guide. Each guide covers fees, holdings, yield, returns and taxes.
XAR vs PPA overlap, if you own both
XAR · ten largest holdings
As of Nov 9, 2026- 1Karman Holdings KRMN3.47%Only here
- 2StandardAero SARO3.34%Only here
- 3Lockheed Martin LMT3.31%Both
- 4Heico HEI3.23%Only here
- 5Honeywell Aerospace HONA3.20%Both
- 6L3Harris Technologies LHX3.19%Both
- 7Huntington Ingalls Industries HII3.19%Only here
- 8TransDigm Group TDG3.19%Both
- 9FTAI Aviation FTAI3.16%Only here
- 10Textron TXT3.15%Only here
Ten largest total 32.4%
PPA · ten largest holdings
As of Nov 9, 2026- 1GE Aerospace GE9.47%Only here
- 2RTX RTX9.26%Only here
- 3Lockheed Martin LMT8.97%Both
- 4Boeing BA7.85%Only here
- 5General Dynamics GD5.53%Only here
- 6Northrop Grumman NOC5.10%Only here
- 7L3Harris Technologies LHX4.20%Both
- 8Honeywell Aerospace HONA3.94%Both
- 9Howmet Aerospace HWM3.84%Only here
- 10TransDigm Group TDG3.69%Both
Ten largest total 61.9%
Shared by both · 4 companies
| Company | XAR weight | PPA weight | Gap |
|---|---|---|---|
| Lockheed Martin LMT | 3.31% | 8.97% | -5.66 pts |
| Honeywell Aerospace HONA | 3.20% | 3.94% | -0.74 pts |
| L3Harris Technologies LHX | 3.19% | 4.20% | -1.01 pts |
| TransDigm Group TDG | 3.19% | 3.69% | -0.50 pts |
Only in XAR’s top ten: Karman Holdings, StandardAero, Heico, Huntington Ingalls Industries, FTAI Aviation, Textron. Only in PPA’s top ten: GE Aerospace, RTX, Boeing, General Dynamics, Northrop Grumman, Howmet Aerospace.
The twist
47.1% of the weight sits in stocks both funds hold (matched by ticker in issuer holdings dated Nov 9, 2026), and 4 stocks appear in both top-ten lists. The funds overlap partly, so owning both doubles up on some names while adding others.
XAR vs PPA, one goal, which fund?
XAR vs PPA, where the money goes
XAR · State Street, Nov 9, 2026
PPA · Invesco, Nov 9, 2026
XAR vs PPA returns compared over 1, 3, 5 and 10 years
XAR vs PPA, what each fund costs a year
The data room
Every figure behind the XAR vs PPA cards above, with its source, date and evidence grade. Open the issuer documents before relying on any number.
XAR vs PPA key facts
Evidence grade: Issuer issuer page · Mixed issuer plus provider · 3rd party| Metric | XAR | PPA | Grade and source |
|---|
Portfolio characteristics
| Metric | XAR | PPA | Grade and source |
|---|
Net assets are dated Nov 9, 2026 for both funds (XAR $5.26B; PPA $7.5B). Figures an issuer page does not show are left out or marked Not captured, not estimated.
XAR vs PPA holdings and top ten
Click a tile · XAR: State Street, Nov 9, 2026 · PPA: Invesco, Nov 9, 2026Tile area is proportional to weight.
| # | Holding | Weight |
|---|
| # | Holding | Weight |
|---|
Top ten sums: XAR 32.4% · PPA 61.9%. 4 shared top-ten holdings. Weights change.
XAR vs PPA sector exposure
XAR: Nov 9, 2026 · PPA: Nov 9, 2026The sector mirror
Same funds, different lenses
Company size
XAR holds 50 stocks and PPA holds 68. XAR reports a weighted average market cap of $48.42B. PPA reports a weighted average market cap of $134.27B average. Theme funds that weight by market value lean toward very large companies, while equal-weight designs give smaller companies more say.
What you actually own
XAR vs PPA performance
Matched dates, both to Sep 30, 2026All rows come from the issuer pages and are dated Sep 30, 2026 for both funds, so they compare like for like. NAV returns include fees; market price and index returns are shown beside them where the issuer published them. “Since inception” starts in different years (XAR 2011, PPA 2005). Past performance does not guarantee future results.
Growth of a hypothetical $10,000 · NAV total return, both to Sep 30, 2026
Both funds derived from issuer NAV total returns on matched dates (compounded). Fund expenses are already in NAV. Illustration, not a forecast.
XAR vs PPA yield, dividends and dividend growth
Yield and distribution facts| Measure | XAR | PPA |
|---|---|---|
| 30-day SEC yield | Not captured | 0.36% |
| Trailing 12-month | Not captured | Not captured |
| Paid, last 12 months | Not captured | Not captured |
| Frequency | Quarterly | Not captured |
Funds like these pay little income. The 30-day SEC yield was not captured for XAR and 0.36% for PPA, and a figure near zero or below means fund costs use up most of the dividends the stocks pay. These funds are held for growth, not yield. Gaps are marked Not captured. See what is dividend yield and yield vs total return.
XAR vs PPA concentration and overlap
Ten largest positions · shared holdingsRank by rank, the ten largest holdings of each fund. Top five: XAR 16.6%, PPA 41.1%. Top ten: XAR 32.4%, PPA 61.9%.
XAR vs PPA trading and liquidity
Issuer fund pages · Nov 9, 2026The issuers report 30-day median bid/ask spreads of 0.10% for XAR and 0.07% for PPA. A spread of 0.05% is about $50 between the buy and sell price on $100,000, and smaller funds usually cost more to trade than larger ones. Funds with many foreign holdings can also trade at a premium or discount to NAV when overseas markets are closed. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading.
XAR vs PPA expense ratio and fees in dollars
As stated by each issuer| Balance | XAR (0.35%) | PPA (0.58%) | Gap per year |
|---|---|---|---|
| $10,000 | $35 | $58 | $23 |
| $50,000 | $175 | $290 | $115 |
| $100,000 | $350 | $580 | $230 |
The expense ratio is taken from fund assets, not billed to you. Fees exclude the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes.
XAR vs PPA, how each fund picks its stocks
Index approach, in plain languageXAR · S&P Aerospace & Defense Select Industry Index
XAR tracks the S&P Aerospace & Defense Select Industry Index. It holds 50 U.S. aerospace and defense companies at close to equal weights, so smaller companies count as much as the giants. It was launched in 2011, and the ten largest holdings total 32.4% of the fund. Index rules and rebalance dates are in the prospectus.
PPA · SPADE Defense Index
PPA tracks the SPADE Defense Index. It holds 68 companies tied to U.S. defense, homeland security and government space work, including some technology and industrial suppliers. It was launched in 2005, and the ten largest holdings total 61.9% of the fund. Index rules and rebalance dates are in the prospectus.
Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.
XAR vs PPA, why yield and returns differ
Sector mix explains much of the gapBoth are aerospace and defense funds, but they follow different indexes. XAR follows the S&P Aerospace & Defense Select Industry Index, which uses a modified equal weighting. PPA follows the SPADE Defense Index, which covers defense, homeland security and government space companies and weights by size with limits.
Because each index sets its own rules, the funds hold different stocks at different weights, and that explains most of the gap in returns. A fund that puts more weight in its largest companies will follow those companies closely, while an evenly weighted fund behaves more like an average of many smaller ones. Fees matter less than holdings over short periods and more over long ones.
How to decide between XAR and PPA
A step-by-step frameworkStart with what separates them: Both are aerospace and defense funds, but they follow different indexes. XAR follows the S&P Aerospace & Defense Select Industry Index, which uses a modified equal weighting. PPA follows the SPADE Defense Index, which covers defense, homeland security and government space companies and weights by size with limits. Then check what you already own: the funds overlap by 47.1%, so holding both is a real decision about how much of each theme you want.
- Step 1 · Theme: XAR is an aerospace and defense fund and PPA is an aerospace and defense fund.
- Step 2 · Concentration: the ten largest holdings are 32.4% of XAR and 61.9% of PPA.
- Step 3 · Cost: XAR 0.35% vs PPA 0.58%.
- Step 4 · Overlap with your core: the largest holdings also sit in S&P 500 funds, so use the Diversification Calculator against what you own.
Size the position against your whole portfolio. Theme funds are volatile, so they usually play a small, deliberate role beside a core fund.
XAR vs PPA for Canadian investors
Currency, withholding tax and account typeXAR and PPA are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on entry and exit. A move in the U.S. dollar also changes your return in Canadian dollars.
Dividends from U.S.-listed funds are generally subject to U.S. withholding tax for Canadian holders, with treatment that depends on the account type. These funds pay little income, so the effect is small, but confirm the rules for your account with a tax professional. This is general education, not tax advice.
Risks of XAR and PPA
What can go wrongShared risks
- Theme funds are concentrated in one industry or idea, so they can fall much further than the broad market.
- Valuations can be high, and prices can drop sharply when growth or government spending expectations change.
- Returns can differ widely from one period to the next; a strong year often follows or precedes a weak one.
- Neither fund pays meaningful income, so the return depends on price.
Fund-specific risks
- XAR: ten largest holdings total 32.4% of the fund (Nov 9, 2026); 50 stocks.
- PPA: ten largest holdings total 61.9% of the fund (Nov 9, 2026); 68 stocks.
- XAR: equal weighting gives more room to small companies, including early-stage space and air mobility names. PPA: charges 0.58%, more than ITA or XAR, for a broader list.
- Both: the funds track indexes with their own rules, so holdings change at each rebalance.
XAR vs PPA taxes and account placement
General education, not tax adviceBoth funds hold stocks and are taxed like other equity ETFs. Distributions are small, and gains are taxed when you sell, at rates that depend on how long you held the shares and on your own situation. Funds with foreign holdings may pay some foreign tax inside the fund.
For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.
Other ETFs people compare
For context, not recommendationsInvestors comparing XAR and PPA often also look at the other funds in this group: HACK, CIBR, BUG, ITA, XAR and PPA. See the other cybersecurity and defense ETFs comparisons, the related thematic ETFs and the ETF research hub.
XAR vs PPA drawdown arithmetic
What a decline means in dollarsRecovery gain = decline ÷ (1 − decline). The scenarios use illustrative declines of 10%, 20% and 30% so you can see what a drop does to each fund. They are a rough guide to a bad year, not a worst-case figure. See the Position Size Calculator.
Tools to compare XAR vs PPA
Static weights from this pageIgnores taxes, spreads and holdings differences. ETF Fee Calculator.
Check shared exposure with the Diversification Calculator.
XAR vs PPA, which fits which job
Characteristics, not recommendationsXAR may suit investors who want…
Aerospace and defense with small and mid-sized companies given equal say.
Strengths
- Lower fee: 0.35% against 0.58%
- Flatter top ten: 32.4% against 61.9%
- 50 holdings
- Exchange-traded and priced all day
Watch points
- Led in 1 of 4 return windows (both to Sep 30, 2026)
- Narrow theme exposure
- Not a complete portfolio
PPA may suit investors who want…
A wider defense basket that adds technology and space suppliers.
Strengths
- Led in 3 of 4 return windows (both to Sep 30, 2026)
- 68 holdings
- Exchange-traded and priced all day
Watch points
- Higher fee: 0.58% against 0.35%
- Heavier top ten: 61.9% against 32.4%
- Narrow theme exposure
- Not a complete portfolio
XAR vs PPA investor scenarios
Characteristics that fit, not recommendationsXAR vs PPA key terms
Plain-language definitions
XAR vs PPA, frequently asked questions
Answers use the figures and dates shown aboveIs XAR or PPA better?
In the XAR vs PPA question, neither is better for everyone. XAR and PPA differ in what they hold and what they charge. Both are aerospace and defense funds, but they follow different indexes. XAR follows the S&P Aerospace & Defense Select Industry Index, which uses a modified equal weighting. PPA follows the SPADE Defense Index, which covers defense, homeland security and government space companies and weights by size with limits.
Expense ratios are 0.35% and 0.58%. NAV total returns, annualized (both to Sep 30, 2026): 1 year -1.59% vs -0.13%; 3 years 27.89% vs 25.37%; 5 years 14.70% vs 17.31%; 10 years 15.59% vs 15.79%. Neither is better for everyone; the choice turns on which theme you want, how concentrated you are willing to be and what you already own.
XAR vs PPA, what are the expense ratios?
XAR charges 0.35% and PPA charges 0.58%, which is $35 and $58 a year per $10,000.
XAR vs PPA, how much do the funds overlap?
On XAR vs PPA, about 47.1% of the weight is held by both funds, matched by ticker in issuer holdings dated Nov 9, 2026. 37 stocks are held by both, and 4 appear in both top-ten lists.
XAR vs PPA, what does each ETF track?
XAR tracks the S&P Aerospace & Defense Select Industry Index. PPA tracks the SPADE Defense Index.
XAR vs PPA, what are the top holdings?
XAR (Nov 9, 2026): Karman Holdings 3.47%, StandardAero 3.34%, Lockheed Martin 3.31%, Heico 3.23%, Honeywell Aerospace 3.2%. PPA (Nov 9, 2026): GE Aerospace 9.47%, RTX 9.26%, Lockheed Martin 8.97%, Boeing 7.85%, General Dynamics 5.53%.
XAR vs PPA, which has performed better?
NAV total returns, annualized (both to Sep 30, 2026): 1 year -1.59% vs -0.13%; 3 years 27.89% vs 25.37%; 5 years 14.70% vs 17.31%; 10 years 15.59% vs 15.79%. Past performance does not guarantee future results.
XAR vs PPA, can I own both?
On XAR vs PPA, you can. They overlap by about 47.1%. The funds overlap partly, so owning both doubles up on some names while adding others.
XAR vs PPA, do the funds pay dividends?
On XAR vs PPA, only small amounts. The 30-day SEC yield was not captured for XAR and 0.36% for PPA, so income is not the reason to hold either fund.
XAR vs PPA, how concentrated are the funds?
The ten largest holdings are 32.4% of XAR and 61.9% of PPA. The largest single holding is Karman Holdings at 3.47% in XAR and GE Aerospace at 9.47% in PPA.
XAR vs PPA, are they suitable for Canadian investors?
On XAR vs PPA, both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and U.S. withholding tax on the small dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice.
XAR vs PPA documents and sources
Open the issuer documents before relying on any figureXAR · State Street
PPA · Invesco
Third-party sources
State Street XAR fund page · Invesco PPA fund page.
Methodology and limits
- XAR figures come from the State Street fund page and PPA figures from the Invesco fund page.
- Dates are shown beside each figure; the issuer documents are linked below.
- Holdings overlap is the sum of the smaller weight of each ticker held by both funds, using each issuer’s full holdings list (Nov 9, 2026). Cash and futures are left out.
- Industry groups on this page are assigned by this site from each stock’s main business, using one scheme for every fund, so they will not match an issuer’s own sector table.
- Figures an issuer page does not show are marked Not captured, and nothing was filled from memory or from another fund.
- Growth of $10,000 is derived from annualized NAV total returns on matched dates; dollar values are approximate.
Educational research, not personalized investment, tax or legal advice, and not a recommendation to buy or sell any fund. Investing involves risk, including loss of principal. Past performance does not guarantee future results. Calculators are hypothetical illustrations. Fund data are provided as published by the sources named and may differ from current figures.