MISLETF

Invesco Aerospace & Defense ETF (PPA) and First Trust Indxx Aerospace & Defense ETF (MISL) offer different approaches to defense sector investing. PPA, the larger and more established fund with $7.4B in AUM, delivers higher dividends (0.4% yield) and lower volatility with traditional aerospace exposure.

MISL, launched in 2022 with a more concentrated 39-holding portfolio, emphasizes next-gen defense tech including Palantir and SpaceX. Since 2022, PPA has outperformed with 117% total return (21.6% CAGR) versus MISL's 105% (19.8% CAGR), though both have slightly elevated expense ratios around 0.58-0.60%.

The First Trust Indxx Aerospace & Defense ETF (MISL) offers diversified exposure to the aerospace and defense sector with a 0.6% expense ratio and $771.54 million in assets. The ETF has declined 2.46% year-to-date and 3.32% over the past year, with top holdings including Palantir Technologies, RTX Corporation, and SpaceX. MISL received a Zacks ETF Rank of 2 (Buy), though larger competitors like ITA and PPA offer lower expense ratios.