What are expense ratios and how do they compare between these ETFs?

An expense ratio represents the annual fee charged by a fund to manage assets. For ITA, the expense ratio is 0.37%, whereas for UAE it is 0.59%. Over time, higher fees reduce net returns. The 0.22 percentage point difference means UAE costs more per dollar invested annually compared to ITA, impacting long-term profitability if performance is similar.

How do net assets affect an ETF's liquidity?

Net assets reflect the total value of a fund's holdings. ITA has $12.5 billion in net assets, providing high liquidity and typically tighter bid-ask spreads. UAE has $292 million, which is significantly lower and may result in wider spreads or difficulty trading large volumes without affecting the price. Higher assets generally ease trading.

What does inception date tell us about a fund?

The inception date marks when a fund began trading. ITA started on May 1, 2006, offering a long track record across various market cycles. UAE began on April 29, 2014, providing over a decade of history but with less time to observe performance during different economic conditions compared to the older fund.

How do the dividend yields differ between the two funds?

Dividend yield indicates income generated relative to price. UAE offers a 4.24% yield, attractive for income-focused investors. ITA has a much lower yield of 0.26%, making it less suitable for those seeking regular cash flow from equities. The difference highlights divergent roles: income generation versus potential capital growth in defence sectors.

What is the overlap in top holdings between these ETFs?

The top ten holdings for ITA include companies like GE, RTX, and BA. The specific top holdings for UAE are not available in the provided data. Based on the available data, there is no listed overlap among the specified top ten holdings of ITA and the undisclosed holdings of UAE, suggesting distinct investment baskets.

What types of companies does ITA hold?

ITA focuses on US industrials, specifically aerospace and defence. Its top holdings include GE at 20.42%, RTX at 16.38%, and BA at 7.72%. This concentration in a few large industrial firms means company-specific news can significantly impact the fund's performance. It offers targeted exposure to sectors linked to global security concerns.

What does UAE provide exposure to?

UAE provides dedicated access to the United Arab Emirates equity market. It is categorized as a Focused Region ETF, offering potential diversification benefits compared to developed markets like the US. However, the specific top holdings and sector weights are not available, which limits transparency regarding the exact companies or industries driving its performance.

How do the fund categories differ?

ITA is classified under Industrials, focusing on specific global sectors like aerospace and defence. UAE is classified as Focused Region, targeting a specific geographic market in the Middle East. This distinction means ITA is sensitive to global industrial trends and security policies, while UAE is influenced by regional economic conditions in the Emirates.

How does market maturity influence these funds?

ITA, established in 2006, has matured through multiple global market cycles, offering a long historical record. UAE, starting in 2014, operates in an emerging market context with a shorter history. The longer tenure of ITA may provide more data for trend analysis, whereas UAE offers exposure to a growing Middle Eastern economy with less historical data.

What are the risks associated with low net assets?

Low net assets, such as the $292 million in UAE, can lead to liquidity issues. Investors might face wider bid-ask spreads, making it costlier to buy or sell shares. In contrast, ITA's $12.5 billion base enhances liquidity, facilitating tighter spreads. Beginners should consider trading volume when investing in smaller funds.

How should beginners interpret the lack of disclosed holdings for UAE?

The specific top holdings and sector weights for UAE are not available in the provided data. This lack of transparency makes it difficult for investors to assess underlying concentration risks or understand exactly which companies drive the fund's performance. Beginners should be aware that incomplete data limits thorough due diligence.

ITA vs UAE

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

Explore the comparison between the iShares US Aerospace & Defense ETF (ITA) and the ISHARES MSCI UAE ETF (UAE). This page examines fees, holdings, dividends, and how each fund tracks its market, including expense ratios of 0.37% and 0.59% respectively, net assets of $12.5 billion and $292 million, and dividend yields of 0.26% and 4.24%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

ITA

Metric

UAE

0.37%

Expense Ratio

0.59%

0.26%

Dividend Yield

4.24%

$12.51B

Net Assets

$292.26M

Holdings

May 1, 2006

Inception Date

Apr 29, 2014

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Index Tracked

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Industrials

Fund Category

Focused Region

ITA costs about $22.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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 SHLD

Compare iShares ITA and Global X SHLD. Analyze expense ratios, net assets, dividend yields, and top holdings like RTX and NOC in this neutral guide.

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

A $12.5 billion asset base enhances liquidity, providing tighter bid-ask spreads for large institutional and retail trades.
Established in 2006, its maturity ensures a long historical record of tracking performance through various global market cycles.
The fund focuses on US industrials, providing targeted exposure to aerospace and defence companies amidst global security concerns.

Considerations

A high concentration in GE at 20.42% means company-specific risks significantly impact the overall fund performance.
The dividend yield is low at 0.26%, making it unsuitable for investors primarily seeking regular income from equities.
The 0.37% expense ratio is higher than standard broad-market funds, reflecting the premium for its thematic industrial focus.

UAE

Pros

A dividend yield of 4.24% is attractive for income-focused investors seeking exposure to the UAE equity market.
The fund provides dedicated access to the UAE market, which may offer diversification benefits compared to developed markets.
Inception in 2014 gives the fund over a decade of operational history in the emerging Middle Eastern sector.

Considerations

The high expense ratio of 0.59% is substantial, reducing net returns for long-term holders in a smaller market.
Net assets of $292 million are relatively low, potentially leading to liquidity issues or wider trading spreads.
Lack of disclosed top holdings and sector weights reduces transparency for investors assessing underlying concentration risks.

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