What is the fee difference between ITA and XAR?

ITA charges 0.37% a year and XAR charges 0.35%. On $10,000 that is about $37 for ITA and $35 for XAR, so roughly $2 a year separates them. Both cost several times more than a broad market index fund, which is typical for narrow industry ETFs.

What index does each fund track?

ITA tracks the Dow Jones U.S. Select Aerospace & Defense index, which weights companies by market value, so the largest firms dominate. XAR tracks the S&P Aerospace & Defense Select Industry index, which spreads weight far more evenly across its members. Both funds currently hold 52 stocks.

How much do ITA and XAR overlap?

They draw from the same industry, so most companies appear in both. In the top 10 lists, three names are shared: Northrop Grumman, Lockheed Martin and General Dynamics. ITA's top 10 is led by GE Aerospace, RTX and Boeing. XAR's top 10 is led by AeroVironment, Honeywell Aerospace, FTAI Aviation and Rocket Lab, each around 3%.

How different is the concentration?

Very. In ITA, GE Aerospace is 21.51%, RTX 17.14% and Boeing 9.18%, so three companies are about 48% of the fund. In XAR, the largest holding is 3.24% and the tenth largest is 2.89%, so the top 10 is only about 30% of assets and no single company drives performance.

Which pays a higher dividend?

Neither is an income fund. XAR shows a dividend yield of 0.33% and ITA 0.26%. Aerospace and defense companies tend to reinvest in research, production and acquisitions rather than pay large dividends, so investors in either fund rely on price appreciation for almost all of their return.

Which fund suits which goal?

ITA suits an investor who wants the industry's largest contractors and engine makers to dominate the position, accepting that three stocks matter most. XAR suits an investor who wants exposure to the whole industry, including smaller drone, space and components companies, with no single name dominating.

Which is bigger and more liquid?

ITA is the larger fund with $12.51 billion in net assets against $6.1 billion for XAR, and it has traded since May 2006 compared with September 2011 for XAR. Both are large enough for retail investors to trade easily on US exchanges.

How are ITA and XAR taxed?

Both are US-listed ETFs. Non-US investors may face US withholding tax on the small dividends they pay, at a rate set by treaty. With yields below 0.4%, the main tax consideration is capital gains, which follow your local rules and depend on the type of account you use.

Can I hold both ITA and XAR?

You can, and doing so blends the two weighting approaches: the giants from ITA plus the even spread of smaller companies from XAR. Because they hold many of the same 52 stocks, the combination does not add new companies so much as change how much each one counts. Many investors simply pick one approach.

ITA vs XAR

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

ITA and XAR both hold 52 US aerospace and defense stocks but weight them very differently. ITA tracks the Dow Jones U.S. Select Aerospace & Defense index and puts about 48% of assets into GE Aerospace, RTX and Boeing, for 0.37% a year. XAR tracks the S&P Aerospace & Defense Select Industry index, its largest position is just 3.24%, and it costs 0.35%. Educational content, not financial advice.

ITA and XAR both hold 52 US aerospace and defense stocks but weight them very differently. ITA tracks the Dow Jones U.S. Select Aerospace & Defense index and puts about 48% of assets into GE Aerospace...

Fund Snapshot

Key Fund Metrics

ITA

Metric

XAR

0.37%

Expense Ratio

0.35%

0.26%

Dividend Yield

0.33%

$12.51B

Net Assets

$6.10B

52

Holdings

52

May 1, 2006

Inception Date

Sep 28, 2011

DJ US Select / Aerospace & Defense

Index Tracked

S&P Aerospace & Defense Select Industry

Industrials

Fund Category

Industrials

XAR costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	ITA	XAR
GDGeneral Dynamics Corporation	4.94%	2.90%
LMTLockheed Martin Corporation	4.85%	2.95%
NOCNorthrop Grumman Corporation	4.57%	2.97%

Discover More Comparisons

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 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

Larger fund with $12.51 billion in net assets and a track record since 2006.
Heavy weights in the sector's biggest names: GE Aerospace 21.51%, RTX 17.14%.
Top 10 includes Boeing, General Dynamics, Lockheed Martin and Northrop Grumman.

Considerations

Top three holdings make up about 48% of the fund, so results hinge on a few stocks.
Expense ratio of 0.37% is slightly above XAR's 0.35%.
Dividend yield of 0.26% offers almost no income.

XAR

Pros

Weights are spread evenly, with no holding above AeroVironment's 3.24%.
Includes smaller names such as Rocket Lab, Kratos and FTAI Aviation near the top.
Slightly cheaper at 0.35%, or $35 a year per $10,000 invested.

Considerations

Smaller fund at $6.1 billion in net assets, about half the size of ITA.
Even weighting gives small and mid caps more influence, which can add volatility.
Dividend yield of 0.33% is low, so returns depend on share prices.

Related Market Insights

Saudi Arms Deal Puts Defence Giants Back in the Spotlight

Explore the investment impact of the $5bn Saudi Arabia JDAM-ER arms deal. Analyse prime defense contractors like Lockheed Martin and RTX with Nemo's thematic guides.