What are the primary differences in the investment focus between the iShares US Aerospace & Defense ETF (ITA) and the Global X Defense Tech ETF (SHLD)?

The iShares US Aerospace & Defense ETF (ITA) focuses broadly on major US aerospace and defence companies. In contrast, the Global X Defense Tech ETF (SHLD) targets defence technology firms. While ITA holds companies like General Electric and Boeing, SHLD includes technology-oriented firms such as Palantir. Both funds operate within the Industrials category but approach the sector through different thematic lenses, leading to distinct portfolio compositions.

How do the inception dates of these two ETFs impact their availability as historical performance references?

The iShares US Aerospace & Defense ETF was launched in May 2006, providing a long track record for analysis. The Global X Defense Tech ETF started much later, in September 2023, so its track record is significantly shorter. Investors comparing them should note that one fund offers over a decade and a half of historical data, while the other has only recently been available for investment, limiting long-term trend analysis.

Why does the difference in net assets between these two ETFs matter for investors?

Net assets reflect the total market value of all the holdings managed by the fund. The iShares US Aerospace & Defense ETF holds $12.5 billion in net assets, while the Global X Defense Tech ETF holds $7.1 billion. A larger asset base can sometimes indicate broader institutional adoption. However, asset size alone does not guarantee performance, and investors should consider other factors like liquidity and expense ratios when evaluating these ETFs.

What is the difference in expense ratios between these two funds, and why is it important?

The iShares US Aerospace & Defense ETF charges an expense ratio of 0.37%, whereas the Global X Defense Tech ETF charges 0.50%. This creates a fee difference of 0.13 percentage points. Expense ratios reduce gross returns directly. Over a long investment horizon, even a small fee difference can compound, meaning the fund with the lower expense ratio retains more of its earnings for investors, all else being equal.

Which top holdings are shared between the two ETFs?

Both funds have several overlapping top-10 holdings. Specifically, RTX, Lockheed Martin (LMT), Northrop Grumman (NOC), General Dynamics (GD), and L3Harris Technologies (LHX) appear in the top ten positions of both the iShares US Aerospace & Defense ETF and the Global X Defense Tech ETF. These shared holdings represent core defence contractors that meet the thematic criteria of both funds, despite their differing focuses on traditional versus technology-driven aerospace and defence.

How do the dividend yields compare, and what does this mean for income-focused investors?

The iShares US Aerospace & Defense ETF offers a dividend yield of 0.26%, which is relatively low. Conversely, the Global X Defense Tech ETF provides a higher yield of 0.67%. While the Global X fund generates more income from its holdings, it is crucial to note that dividend yield is just one metric. Investors seeking higher income may find the 0.67% yield more attractive than the 0.26% yield, but the difference remains small compared to high-income ETFs.

What sector exposure do these ETFs provide, and how does it differ?

Both ETFs fall under the Industrials sector category. However, the iShares US Aerospace & Defense ETF offers broad exposure to traditional aerospace and defence companies, which can include heavy industrials. The Global X Defense Tech ETF concentrates specifically on defence technology. While the specific sector weight breakdowns are not available, the focus areas differ: one encompasses a wider range of established aerospace contractors, and the other narrows in on technology integration within defence.

Are there significant concentration risks in either fund?

The iShares US Aerospace & Defense ETF exhibits a notable single-name risk due to its holding weight in General Electric at 20.42%. A large portion of its assets is tied to this one stock. The Global X Defense Tech ETF also has a top holding in Palantir, but its overall concentration profile differs. Investors should review the holdings, as high concentration in any single company can increase volatility if that specific company underperforms.

Why might an investor choose to research fund transparency and index details before investing?

It is worth noting that the specific index tracked by the iShares US Aerospace & Defense ETF and the Global X Defense Tech ETF is not available for direct review. Understanding what index an ETF tracks helps investors know the rules behind its selection and weighting. Since both funds list their tracked index as 'not available', investors must rely on the published holdings to understand exactly what the funds hold and how those positions might change.

What should beginners know about interpreting financial product comparisons?

Educational content such as this comparison page is for informational purposes only and does not constitute financial advice. When reading ETF vs ETF comparisons, beginners should focus on the data points provided, such as expense ratios and holding weights. It is essential to remember that past performance or current holdings do not guarantee future results. Investors should conduct their own due diligence or consult with a qualified financial adviser before making investment decisions.

ITA vs SHLD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare iShares US Aerospace & Defense ETF (ITA) and Global X Defense Tech ETF (SHLD). Explore expense ratios of 0.37% and 0.50%, net assets of $12.5 billion and $7.1 billion, and dividend yields of 0.26% and 0.67%. Review top holdings like RTX, NOC, LMT, GD, and LHX to understand each fund's approach to the aerospace and defense sector. This page evaluates fees, holdings, dividends, and market tracking. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

ITA

Metric

SHLD

0.37%

Expense Ratio

0.50%

0.26%

Dividend Yield

0.67%

$12.51B

Net Assets

$7.14B

Holdings

May 1, 2006

Inception Date

Sep 11, 2023

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Index Tracked

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Industrials

Fund Category

Industrials

ITA costs about $13.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	ITA	SHLD
RTXRTX Corporation	16.38%	9.10%
NOCNorthrop Grumman Corporation	4.69%	7.88%
LMTLockheed Martin Corporation	4.66%	8.29%
GDGeneral Dynamics Corporation	4.59%	8.54%
LHXL3Harris Technologies, Inc.	3.46%	3.69%

Discover More Comparisons

ITA vs XAR

ITA vs XAR: both hold 52 aerospace and defense stocks. ITA puts 48% in GE, RTX and Boeing for 0.37% a year; XAR spreads weight evenly for 0.35%. Compare both.

ITA vs UAE

Compare ITA and UAE ETFs. Explore fees, dividends, holdings, and tracking details for these iShares funds. Educational content, not financial advice.

ITA vs PPA

ITA vs PPA compared: 0.37% vs 0.58% expense ratio, two aerospace and defense ETFs with shared holdings but very different weights, yield, size and fit.

Investment Analysis

ITA

Pros

]The fund has a low expense ratio of 0.37%. [
]It offers broad exposure to major US aerospace and defence companies. [
]The fund has a long track record since its inception in May 2006.

Considerations

]Investors seeking higher income may find its 0.26% dividend yield unattractive. [
]The fund lacks diversification across other sectors such as healthcare or industrials. [
]A high holding weight in General Electric at 20.42% introduces significant single-name risk.

SHLD

Pros

]The fund has grown to $7.1 billion in net assets. [
]It offers exposure to defence technology firms like Palantir. [
]The fund's dividend yield of 0.67% is higher than similar funds.

Considerations

]With an inception date of September 2023, the fund lacks a long track record. [
]The expense ratio of 0.50% is higher than the 0.37% for the iShares fund. [
]The fund lacks transparency as the index tracked is not available.

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