Industry Distribution:

• Aerospace and Aviation: approx. 60%
• Defense: approx. 40%

Top 3 Markets:

1. USA: approx. 70%
2. Europe: approx. 15%
3. Asia-Pacific: approx. 10%

The Invesco Aerospace & Defense ETF (PPA) primarily invests in companies operating in the aerospace and defense industries. Revenues mainly come from these two sectors, with a focus on aerospace.

The largest market for this ETF is the USA, attributed to the strong presence and high demand for defense spending in the country. Europe and the Asia-Pacific region follow as important markets, also making significant contributions to revenue.

Invesco Aerospace & Defense ETF (PPA) is an exchange-traded fund (ETF) and not a company that manufactures physical products.

The ETF invests in a variety of companies within the aerospace and defense industry. These companies produce their products at various locations worldwide, depending on their respective corporate structure and production capacities.

Since the ETF itself does not manufacture products, there are no specific production sites. The production facilities would refer to the individual companies in which the ETF invests.

Current Strategy: Diversification and Innovation

Focus on ESG Criteria: Sustainability and Social Responsibility

Portfolio Expansion: New Technologies and Markets

Invesco Aerospace & Defense ETF (PPA) pursues a strategy focused on diversification and innovation. The company plans to expand its portfolio through investments in new technologies and emerging markets. This includes areas such as cybersecurity and aerospace, which are expected to experience significant growth in the coming years.

Another key aspect of the growth strategy is the integration of ESG criteria (Environmental, Social, and Governance) into investment decisions. Invesco emphasizes sustainability and social responsibility to meet the requirements of modern investors and secure stable long-term returns.

Through this strategic alignment, Invesco Aerospace & Defense ETF positions itself to benefit from changing market conditions and technological advancements.

Main raw materials: Aluminum, Titanium, Steel

Countries of origin: Canada, Russia, China

The Invesco Aerospace & Defense ETF (ARCA:PPA) invests in companies in the aerospace, defense, and space industries. These sectors are heavily dependent on specific raw materials such as aluminum, titanium, and steel, which are needed for the production of airplanes, rocket parts, and other defense systems.

Aluminum is often imported from Canada, which is considered one of the largest aluminum producers worldwide. Titanium, another critical material, is frequently sourced from Russia due to the country's significant titanium deposits. Steel, an essential material for the aerospace industry, is imported in large quantities from China, which is one of the leading steel producers.

These import relationships are crucial for maintaining the production capacities and competitiveness of the companies in the ETF. The geopolitical stability and trade relationships with these countries can have significant impacts on the availability and costs of materials.

ETF Market Share: Estimated at around 10% in the Aerospace & Defense ETF sector (2025)

Expense Ratio: 0.61% (2025)

The Invesco Aerospace & Defense ETF (ARCA:PPA) provides investors with access to a diversified portfolio of companies in the aerospace, defense, and space sectors. A key competitive advantage of the ETF is its broad diversification, which minimizes risk for investors while offering the opportunity to benefit from the overall growth dynamics of the industry.

The expense ratio of 0.61% is competitive compared to other ETFs in this sector, making the ETF attractive to cost-conscious investors. Additionally, the ETF benefits from the strong performance of aerospace, defense, and space companies, driven by increasing defense spending and technological innovations.

Overall, the Invesco Aerospace & Defense ETF offers a solid competitive advantage through its diversification, competitive cost structure, and positive industry trends.

Institutional Investor Share: Approx. 80% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant insider transactions reported (estimated for 2025)

The Invesco Aerospace & Defense ETF (PPA) traditionally has a high institutional investor share, as ETFs are often used by institutional investors such as pension funds, investment funds, and other large financial institutions to create diversified portfolios.

Insider buys and sells are less relevant for ETFs, as these funds consist of a variety of stocks and are not influenced by a single company's management. Therefore, there are usually no significant insider transactions that would directly affect the ETF.

Market share of Invesco Aerospace & Defense ETF (PPA): Approximately 5% (2025)

Main competitors and their market shares:

1. iShares U.S. Aerospace & Defense ETF (ITA): Approximately 25%
2. SPDR S&P Aerospace & Defense ETF (XAR): Approximately 20%
3. Vanguard Industrials ETF (VIS): Approximately 15%
4. Fidelity MSCI Industrials Index ETF (FIDU): Approximately 10%
5. Invesco Aerospace & Defense ETF (PPA): Approximately 5%
6. First Trust Indxx Aerospace & Defense ETF (MISL): Approximately 3%
7. Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN): Approximately 2%

Economic moat and competitive advantages:

Invesco Aerospace & Defense ETF (PPA) has a moderate economic moat compared to its competitors. The ETF benefits from a diversified selection of companies within the aerospace, defense, and space industry, providing it with a certain level of stability. However, its market share is relatively low compared to leading ETFs such as iShares U.S. Aerospace & Defense ETF (ITA) and SPDR S&P Aerospace & Defense ETF (XAR).

Leading ETFs like ITA and XAR have a stronger economic moat due to their larger market shares and often broader recognition and deeper integration into institutional portfolios. These ETFs often offer higher liquidity and a wider selection of industry heavyweights, making them more attractive to investors.

Overall, Invesco Aerospace & Defense ETF (PPA) does not have a significant competitive advantage over the leading ETFs, as they dominate due to their size and market presence. Therefore, PPA's economic moat is considered weaker unless specific strategic adjustments or market changes increase its attractiveness.

Industry Growth: 4.1% CAGR (2023-2028, Forecast) US Defense Spending: $842 billion USD (2023) Technological Innovations: Increasing investments in AI and unmanned systems

The Invesco Aerospace & Defense ETF (PPA) invests in companies in the aerospace and defense sector that benefit from rising defense spending and technological innovations. The industry shows solid growth potential, supported by the continuous increase in defense spending, especially in the USA, and the focus on modern technologies such as Artificial Intelligence and unmanned systems.

Geopolitical uncertainty and the need to protect national security interests are driving demand for advanced defense solutions. Companies within this ETF could benefit from long-term government contracts and stable cash flows, increasing the attractiveness of the investment.

Additionally, diversification within the ETF could reduce risk as it invests in a variety of companies operating in different areas of the aerospace and defense industry. This provides investors with an opportunity to benefit from positive industry trends without having to rely on the performance of a single company.

Dividend Yield: 1.2% (estimated for 2025)
Payout Frequency: Quarterly

The Invesco Aerospace & Defense ETF (ARCA:PPA) regularly pays dividends to its shareholders. The payout is usually done quarterly and is relatively reliable, as the ETF invests in companies operating in the aerospace, defense, and space industries. These sectors are known for their stable cash flows and long-term government contracts, which support the dividend payments.

The estimated dividend yield of 1.2% for 2025 is based on historical payouts and the performance of the underlying companies in the ETF. However, it is important to note that dividend yields can fluctuate depending on market conditions and the performance of the companies included in the ETF.