Invesco Aero & Defense
ALTAR
Score™
5.1% info Recommen-
dation
UNDERWEIGHT
2019E    2020E
P/E
ratio
22.4x P/Sales
ratio
1.7x
P/BV
ratio
4.9x Div.
yield
1.3%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
Invesco Aerospace & Defense Portfolio seeks investment results that correspond to the price and yield of the SPADE(TM) Defense Index, which tracks stocks of companies involved in the defense industry.

FUND BASICS
Category US Equities
Fund Sponsor Invesco PowerShares
Website www.powershares.com
Inception date Oct 26, 2005
Assets (mns) $1,108
Currency USD
Expense ratio 59 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian Bank of New York Mellon
Weighting Market Cap
Index replication Full
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 49
Wgt avg mkt cap (mns) $54,492
Large cap (>$10bn) 75.8%
Mid cap ($2-10bn) 21.6%
Small cap (<$2bn) 2.6%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
UNITED TECHNOLOGIES CORP 7.7 %
HONEYWELL INTERNATIONAL INC 7.7 %
LOCKHEED MARTIN CORP 6.9 %
BOEING CO 6.5 %
RAYTHEON COMPANY 5.8 %
NORTHROP GRUMMAN CORP 5.7 %
GENERAL DYNAMICS CORP 5.1 %
TRANSDIGM GROUP INC 4.1 %
HARRIS CORP 3.7 %
HEICO CORP 3.6 %
Total 56.6 %

TOP COUNTRY EXPOSURE
UNITED STATES 97.8 %
ISRAEL 1.5 %
LUXEMBOURG 0.7 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
37.2% 24.9% 16.2% 17.3% 12.6%

Market Correlations
versus... Beta R-squared
S&P500 1.13 66%
MSCI EAFE 0.93 38%
MSCI Emg. Mkts. 0.61 27%

Technical Indicators
Recent close $69.24
30d moving avg. $67.15
Annualized volatility 16.8%
Short interest (ETF) 0.3%
Short interest (Underlying) 3.4%
Relative strength (RSI) 69

Liquidity measures
Avg. volume (thou.) 78
Turnover 0.5%
Bid/Ask (% of price) 0.05%
ADV underlying (mns) $4,821

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Invesco Aero & Defense ETF based on the alternatives' overlap in portfolio holdings with PPA. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: PPA Expense: 59 bp ALTAR Score™: 5.1%


ALTERNATIVE ETFs BASED ON OVERLAP WITH PPA
Ticker Fund
Name
Overlap1
vs PPA
(%)
Expense
ratio
(bp)
Savings
vs PPA
(bp)
ALTAR
Score™
(%)
ALTAR
vs PPA
(%)
ITA iShares U.S. Aerospace & Defense 60.4 42 17 5.4 +0.3
XKFF SPDR Kensho Final Frontiers 55.1 45 14 4.9 -0.2
XAR SPDR S&P Aerospace & Defense 52.6 35 24 5.0 -0.2
FITE SPDR Kensho Future Security 36.5 45 14 4.1 -1.1
XLI Industrials Select Sector SPDR 31.5 13 46 6.2 +1.1
FIDU Fidelity Industrials 28.6 8 51 6.0 +0.9
VIS Vanguard Industrials 27.5 10 49 6.3 +1.2
IFLY ETFMG Drone Economy Strategy 25.5 75 -16 0.5 -4.6
IYJ iShares DJ US Industrials 23.5 42 17 5.4 +0.3
JHMI John Hancock Multifactor Industrials 19.5 40 19 6.7 +1.5
KOMP SPDR Kensho New Economies Composite 18.5 20 39 3.8 -1.3
FXR First Trust Industrials/Producer Durables 17.8 62 -3 7.0 +1.9
EXI iShares Global Industrials 17.0 46 13 6.1 +1.0
RGI Invesco S&P Equal Weight Industrials 16.9 40 19 6.7 +1.5
UFO Procure Space 14.7 75 -16 2.1 -3.0
PRN Invesco DWA Industrials Momentum 14.5 60 -1 4.2 -0.9
PDP Invesco DWA Technical Leaders 11.3 62 -3 3.9 -1.2
DIA SPDR Dow Jones Industrial Average 10.1 17 42 6.1 +1.0
HONR InsightShares Patriotic Employers 9.8 65 -6 7.0 +1.9
VETS Pacer Military Times Best Employers 9.6 60 -1 6.4 +1.3

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Invesco Aero & Defense
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 23.8 %
Divided by: Fwd. P/BV 4.2 x
Less: Expense ratio 59 bp
Equals: ALTAR Score 5.1 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.43 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.