Powershares
Aerospace & Defense #ETF (NYSEarca:
$PPA) Joins Billion Dollar ETF Club
February
27, 2017 -Washington DC – (Investorideas.com Newswire) The Powershares
Aerospace & Defense ETF (NYSEarca: PPA) has joined the exclusive ETF club
of funds with more than $1 billion of assets under management. Launched in 2005, the ETF fund tracks the
SPADE Defense Index (ticker: DXS)—a passive investment benchmark composed of
more than 50 firms deemed systematically important to the defense sector and
includes companies involved with the manufacture of aircraft, naval vessels, missiles,
anti-missile systems, and ground vehicles; information technology including
command and control, reconnaissance, surveillance, big data, and cybersecurity;
space systems; and border and national security efforts.
The
SPADE Defense Index has outperformed the S&P500 in each of the last 6 years
and in 15 of the past 18. Since the turn
of the century, the Index has increased by 584.57% vs just 87% for the broader
market. This translates to a $10,000
investment in a fund tracking the SPADE Defense Index (compounded before fees)
being worth $63,560 at the beginning of 2018 vs. $18,193 for one tracking the
broader US market.
Fueling
these recent gains, which have seen assets into PPA quadruple over the past two
years, is a convergence of an upgrade supercycle for commercial airplanes,
strength in defense spending, and an increase in international/foreign military
sales. Boeing (NYSE: GD) alone has seen
its stock price triple in the past 20 months.
According
to SPADE Indexes, the sector remains in a position to see sustained growth as
each of these three trends are expected to continue for some time. The recent planned acquisition by General
Dynamics (NYSE: GD) of CSRA, the former public sector division of CSC that
merged with SRA, indicates that IT-related activities which have underperformed
in recent years may be returning to favor. This should benefit to investors in
PPA as the SPADE Defense Index includes exposure in this area and has the most
diversified market cap holdings in the category.
The
SPADE® Defense Index (NYSE: ^DXS) is a modified capitalization-weighted index
comprised of publicly traded companies that benchmarks the performance of
companies involved with defense, homeland security, and space. The Index is
composed of more than 50 firms with representative business activities
including: naval vessels, military aircraft, missiles and munitions,
battlespace awareness, C4ISR, network centric warfare, homeland security
including border security and biometric and screening systems, and space
systems.
Index
values are distributed by the NYSE/ICE Data Services under the ticker ‘DXS’.
The InvescoPowershares Aerospace & Defense ETF, designed to track the SPADE
Defense Index, trades under the ticker ‘PPA’. Historical data for the Index is
available from 30 December 1997. The ETF was launched on 26 October 2005.
Contact
info: Michael Stolack
HomelandDefenseStocks.com
- investing ideas for Defense stocks, Biometrics stocks, Homeland security
stocks, Biodefense stocks, Cyber security stocks
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