Comparative Analysis of Aerospace and Defense ETFs: Invesco vs State Street
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 33 minutes ago
0mins
Source: Yahoo Finance
- Cost and Return Comparison: The State Street SPDR S&P Aerospace & Defense ETF (XAR) offers a lower expense ratio of 0.35% compared to Invesco Aerospace & Defense ETF (PPA) at 0.58%, making it a more cost-effective choice for long-term holders, thereby enhancing overall portfolio returns through reduced management fees.
- Return and Risk Assessment: Over the past year, XAR achieved a return of 50.97%, significantly outperforming PPA's 35.37%, indicating that XAR's equal-weighting strategy allows for better performance amid market volatility, making it suitable for investors seeking high returns.
- Portfolio Composition: PPA focuses on major defense and aerospace companies, with significant holdings in Boeing (8.38%) and General Electric (8.20%), while XAR diversifies its investments across 41 positions, enhancing exposure to mid-cap and small-cap companies for broader market coverage.
- Market Environment Impact: Both ETFs have seen share price increases over the past year due to heightened government defense spending and geopolitical tensions, prompting investors to choose the fund that aligns with their risk preferences for optimal investment outcomes.
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Analyst Views on IVZ
Wall Street analysts forecast IVZ stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 28.060
Low
25.00
Averages
28.68
High
33.50
Current: 28.060
Low
25.00
Averages
28.68
High
33.50
About IVZ
Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparative Analysis of Aerospace and Defense ETFs: Invesco vs State Street
- Cost and Return Comparison: The State Street SPDR S&P Aerospace & Defense ETF (XAR) offers a lower expense ratio of 0.35% compared to Invesco Aerospace & Defense ETF (PPA) at 0.58%, making it a more cost-effective choice for long-term holders, thereby enhancing overall portfolio returns through reduced management fees.
- Return and Risk Assessment: Over the past year, XAR achieved a return of 50.97%, significantly outperforming PPA's 35.37%, indicating that XAR's equal-weighting strategy allows for better performance amid market volatility, making it suitable for investors seeking high returns.
- Portfolio Composition: PPA focuses on major defense and aerospace companies, with significant holdings in Boeing (8.38%) and General Electric (8.20%), while XAR diversifies its investments across 41 positions, enhancing exposure to mid-cap and small-cap companies for broader market coverage.
- Market Environment Impact: Both ETFs have seen share price increases over the past year due to heightened government defense spending and geopolitical tensions, prompting investors to choose the fund that aligns with their risk preferences for optimal investment outcomes.
See More
Invesco CEO to Participate in Strategic Decisions Conference
- Executive Participation: Invesco's CEO Andrew Schlossberg will participate in a fireside chat at Bernstein's Annual Strategic Decisions Conference on May 27, 2026, highlighting the company's leadership in the asset management sector.
- Investor Relations Link: The event will provide a live audio webcast link through Invesco's Investor Relations section, ensuring global investors can access real-time company updates, thereby enhancing transparency.
- Replay Availability: For those unable to attend the live session, a replay will be available post-event, further increasing information accessibility and investor engagement, reflecting Invesco's commitment to effective communication with clients.
- Asset Management Scale: As of March 31, 2026, Invesco manages a total of $2.2 trillion in assets, demonstrating its robust strength and market influence within the global asset management industry.
See More
U.S. Assets Under Management Rise 6.3% in April 2026
- AUM Growth: As of April 2026, total assets under management reported by nine U.S. asset managers reached $7.11 trillion, reflecting a 6.3% month-over-month increase and nearly 15% year-over-year growth, indicating a positive market recovery.
- Market Performance Boost: The S&P 500 index rose by 10% month-over-month and 29% year-over-year in April, providing strong support for the increase in AUM, which reflects a restoration of investor confidence.
- Company Performance Variance: Among the firms, Invesco (IVZ) led with an 8.33% month-over-month growth, while WisdomTree (WT) stood out with a remarkable 36.47% year-over-year increase, highlighting competitive disparities among companies in the market.
- Yield Changes: The 10-year U.S. Treasury yield rose by 2.14% in April and 5.17% year-to-date, which may influence investors' asset allocation decisions and further drive dynamics within the asset management industry.
See More
Invesco Reports 8.3% Increase in AUM to $2.34 Trillion
- AUM Growth: Invesco's assets under management (AUM) reached $2,339.4 billion at the end of April 2026, marking an 8.3% increase from the previous month, indicating strong performance and investor confidence in the firm.
- Strong Net Inflows: In April, Invesco recorded net long-term inflows of $18.2 billion, demonstrating sustained demand for its investment products and further solidifying its market position.
- Market Returns Impact: Favorable market returns contributed an additional $151 billion to AUM, while foreign exchange fluctuations added $8.2 billion, showcasing the firm's success in diversified investment strategies.
- Quarterly Averages: The preliminary average total AUM for the quarter ending April 30 was $2,260.5 billion, with active AUM at $1,159.9 billion, reflecting stable growth and ongoing attractiveness in the asset management sector.
See More
Invesco Canada Announces Fund Name Changes and Terminations
- Fund Name Changes: Effective May 8, 2026, Invesco will rename its International Developed Dynamic-Multifactor Index ETF and Russell 1000 Dynamic-Multifactor Index ETF to their Multifactor counterparts, maintaining investment objectives and strategies to ensure consistency for investors.
- Series Terminations: Several mutual fund series, including Invesco Canadian Core Plus Bond Fund and Invesco Developing Markets Fund, will terminate on May 29, 2026, with all purchases closed, potentially increasing liquidity risks for existing investors.
- Cash Management Fund Termination: The Canadian Dollar Cash Management Fund will terminate on July 10, 2026, with new purchases closed immediately, allowing existing investors to buy until July 9, which may impact their asset allocation strategies.
- Management Transfer: Invesco has entered into an agreement to transfer management of its Canadian fund business to CI Investments Inc., which is expected to enhance management efficiency and optimize portfolio management, potentially having a profound impact on fund operations if the transaction closes.
See More
Invesco Q1 2026 Earnings Call Insights
- Growth Strategy: Invesco's CEO Andrew Schlossberg emphasized the company's focus on 'profitable organic growth,' highlighting high demand for scalable investment capabilities like fixed income and ETFs, indicating strong performance in the Asia-Pacific and EMEA markets will drive future growth.
- Sustained Inflows: The report revealed that Invesco achieved net long-term inflows of $21.8 billion in Q1, with $11.6 billion in global liquidity inflows, marking the company's 11th consecutive quarter of net inflows, demonstrating strong market demand for its investment products.
- ETF Expansion: By quarter-end, Invesco's ETF assets under management reached a record $638 billion, with nearly $19 billion in net inflows and the launch of four new active ETFs, further solidifying its position in the competitive ETF market.
- Capital Return Plan: CFO Allison Dukes reported an operating margin improvement to 34.5% and announced an increase in share repurchases by $40 million, alongside an additional $1 billion authorized for share buybacks, reflecting the company's confidence in future profitability.
See More
Comparative Analysis of Aerospace and Defense ETFs: Invesco vs State Street
- Cost and Return Comparison: The State Street SPDR S&P Aerospace & Defense ETF (XAR) offers a lower expense ratio of 0.35% compared to Invesco Aerospace & Defense ETF (PPA) at 0.58%, making it a more cost-effective choice for long-term holders, thereby enhancing overall portfolio returns through reduced management fees.
- Return and Risk Assessment: Over the past year, XAR achieved a return of 50.97%, significantly outperforming PPA's 35.37%, indicating that XAR's equal-weighting strategy allows for better performance amid market volatility, making it suitable for investors seeking high returns.
- Portfolio Composition: PPA focuses on major defense and aerospace companies, with significant holdings in Boeing (8.38%) and General Electric (8.20%), while XAR diversifies its investments across 41 positions, enhancing exposure to mid-cap and small-cap companies for broader market coverage.
- Market Environment Impact: Both ETFs have seen share price increases over the past year due to heightened government defense spending and geopolitical tensions, prompting investors to choose the fund that aligns with their risk preferences for optimal investment outcomes.
See More
Invesco CEO to Participate in Strategic Decisions Conference
- Executive Participation: Invesco's CEO Andrew Schlossberg will participate in a fireside chat at Bernstein's Annual Strategic Decisions Conference on May 27, 2026, highlighting the company's leadership in the asset management sector.
- Investor Relations Link: The event will provide a live audio webcast link through Invesco's Investor Relations section, ensuring global investors can access real-time company updates, thereby enhancing transparency.
- Replay Availability: For those unable to attend the live session, a replay will be available post-event, further increasing information accessibility and investor engagement, reflecting Invesco's commitment to effective communication with clients.
- Asset Management Scale: As of March 31, 2026, Invesco manages a total of $2.2 trillion in assets, demonstrating its robust strength and market influence within the global asset management industry.
See More
U.S. Assets Under Management Rise 6.3% in April 2026
- AUM Growth: As of April 2026, total assets under management reported by nine U.S. asset managers reached $7.11 trillion, reflecting a 6.3% month-over-month increase and nearly 15% year-over-year growth, indicating a positive market recovery.
- Market Performance Boost: The S&P 500 index rose by 10% month-over-month and 29% year-over-year in April, providing strong support for the increase in AUM, which reflects a restoration of investor confidence.
- Company Performance Variance: Among the firms, Invesco (IVZ) led with an 8.33% month-over-month growth, while WisdomTree (WT) stood out with a remarkable 36.47% year-over-year increase, highlighting competitive disparities among companies in the market.
- Yield Changes: The 10-year U.S. Treasury yield rose by 2.14% in April and 5.17% year-to-date, which may influence investors' asset allocation decisions and further drive dynamics within the asset management industry.
See More
Invesco Reports 8.3% Increase in AUM to $2.34 Trillion
- AUM Growth: Invesco's assets under management (AUM) reached $2,339.4 billion at the end of April 2026, marking an 8.3% increase from the previous month, indicating strong performance and investor confidence in the firm.
- Strong Net Inflows: In April, Invesco recorded net long-term inflows of $18.2 billion, demonstrating sustained demand for its investment products and further solidifying its market position.
- Market Returns Impact: Favorable market returns contributed an additional $151 billion to AUM, while foreign exchange fluctuations added $8.2 billion, showcasing the firm's success in diversified investment strategies.
- Quarterly Averages: The preliminary average total AUM for the quarter ending April 30 was $2,260.5 billion, with active AUM at $1,159.9 billion, reflecting stable growth and ongoing attractiveness in the asset management sector.
See More
Invesco Canada Announces Fund Name Changes and Terminations
- Fund Name Changes: Effective May 8, 2026, Invesco will rename its International Developed Dynamic-Multifactor Index ETF and Russell 1000 Dynamic-Multifactor Index ETF to their Multifactor counterparts, maintaining investment objectives and strategies to ensure consistency for investors.
- Series Terminations: Several mutual fund series, including Invesco Canadian Core Plus Bond Fund and Invesco Developing Markets Fund, will terminate on May 29, 2026, with all purchases closed, potentially increasing liquidity risks for existing investors.
- Cash Management Fund Termination: The Canadian Dollar Cash Management Fund will terminate on July 10, 2026, with new purchases closed immediately, allowing existing investors to buy until July 9, which may impact their asset allocation strategies.
- Management Transfer: Invesco has entered into an agreement to transfer management of its Canadian fund business to CI Investments Inc., which is expected to enhance management efficiency and optimize portfolio management, potentially having a profound impact on fund operations if the transaction closes.
See More
Invesco Q1 2026 Earnings Call Insights
- Growth Strategy: Invesco's CEO Andrew Schlossberg emphasized the company's focus on 'profitable organic growth,' highlighting high demand for scalable investment capabilities like fixed income and ETFs, indicating strong performance in the Asia-Pacific and EMEA markets will drive future growth.
- Sustained Inflows: The report revealed that Invesco achieved net long-term inflows of $21.8 billion in Q1, with $11.6 billion in global liquidity inflows, marking the company's 11th consecutive quarter of net inflows, demonstrating strong market demand for its investment products.
- ETF Expansion: By quarter-end, Invesco's ETF assets under management reached a record $638 billion, with nearly $19 billion in net inflows and the launch of four new active ETFs, further solidifying its position in the competitive ETF market.
- Capital Return Plan: CFO Allison Dukes reported an operating margin improvement to 34.5% and announced an increase in share repurchases by $40 million, alongside an additional $1 billion authorized for share buybacks, reflecting the company's confidence in future profitability.
See More
