Invesco Aerospace & Defense ETF vs U.S. Global Jets ETF: Is PPA or JETS the Better Buy in 2026?

Investors weighing Invesco Aerospace & Defense ETF (NYSEMKT:PPA) against U.S. Global Jets ETF (NYSEMKT:JETS) are choosing between a broad defense-oriented industrial play and a concentrated bet on global airline recovery.

Investors often seek the industrial sector for its balance of cyclical growth and tangible assets, yet sub-sectors like defense and commercial aviation offer starkly different journeys. While the Invesco fund tracks companies essential to national security and space, the U.S. Global fund follows the recovery and volatility of global airline operators.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of July 10.

In terms of cost, the Invesco fund is slightly more affordable with an expense ratio of 0.58% compared to the 0.60% charged by the U.S. Global fund. Regarding income, the U.S. Global fund offers a higher trailing payout for yield-seeking investors.

Performance & risk comparison

What's inside

The Invesco Aerospace & Defense ETF generally invests at least 90% of assets in companies involved in the development, manufacture, and support of U.S. defense, military, and government space operations. Its largest positions include GE Aerospace (NYSE:GE) at 7.3%, RTX Corp (NYSE:RTX) at 7.2%, and Boeing Co (NYSE:BA) at 6.8%. The fund holds 62 positions and provides heavy exposure to industrials at 90% and technology at 10%. It was launched in 2005. Invesco Aerospace & Defense ETF has paid $0.64 per share over the trailing 12 months, which, on its recent ~$174.30 share price, works out to a 0.40% yield.

The U.S. Global Jets ETF provides a focused approach to the global airline industry, tracking 50 holdings including operators and manufacturers. Its top holdings include American Airlines Group (NASDAQ:AAL) at 11.3%, United Airlines Holdings (NASDAQ:UAL) at 11.1%, and Southwest Airlines (NYSE:LUV) at 10.7%. This fund allocates 89% to industrials, 8% to consumer cyclical companies and 3% to tech. It was launched in 2015. U.S. Global Jets ETF has paid $0.23 per share over the trailing 12 months, which on its recent ~$32.09 share price works out to a 0.70% yield.

Which fund is the better buy?

The Invesco fund — PPA — holds a number of stocks not seen in the U.S. Global offering (JETS). These include defense contractors L3Harris Technologies (NYSE:LHX), General Dynamics (NYSE:GD), and Northrop Grumman (NYSE:NOC). All of those are stocks benefiting from the U.S. increasing defense spending amid multiple military campaigns in recent years.

The primary reason for that difference in holdings is that JETS focuses solely on the commercial aerospace business, primarily consumer travel by air. That’s a boom-and-bust industry, where intense competition over airfare pricing makes it difficult for most airlines to post consistent profits.

The result is PPA has outpaced JETS handily. PPA beats JETS over the past three, five, and 10-year periods, with PPA returning 28.6%, 19.4%, and 17.8%, respectively. By comparison, JETS has returned an annualized 16.1%, 6.9%, and 5.2% over the 3-, 5-, and 10-year look-backs.

Performance like that makes PPA, the Invesco Aerospace & Defense ETF, the better buy.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, L3Harris Technologies, and RTX. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.