iShares U.S. Aerospace & Defense ETF ITA

The Motley Fool 12 nov

The article compares two aerospace and defense ETFs: ITA (iShares U.S. Aerospace & Defense ETF) and ARKX (ARK Space & Defense Innovation ETF). ITA offers lower fees (0.37% vs 0.75%), better 5-year returns ($2,117 vs $1,440 on $1,000 invested), and lower volatility, while ARKX provides active management with higher 3-year returns but greater risk. The analysis recommends ITA for investors seeking stability and longer-term performance.

The Motley Fool 9 nov

As investors prepare portfolios for 2027, three ETFs are positioned for growth: PAVE (infrastructure development) benefits from AI data center buildout and capital spending; VHT (healthcare) has outperformed the S&P 500 with strong Q4 earnings forecasts; and ITA (aerospace & defense) is supported by geopolitical tensions and military spending priorities.

The Motley Fool 9 nov

The iShares U.S. Aerospace & Defense ETF (ITA) and State Street SPDR S&P Aerospace & Defense ETF (XAR) both provide exposure to military spending and commercial aviation, but differ significantly in their investment approaches. ITA concentrates heavily on industry giants like GE Aerospace, RTX, and Boeing, while XAR spreads investments more evenly across 50 companies using modified equal-weighting. For long-term investors, XAR appears to be the better choice due to its lower expense ratio (0.35% vs 0.37%), more balanced risk profile, and reduced dependence on a few major companies, though both funds face risks from defense budget uncertainty and aviation demand fluctuations.

The Motley Fool 2 nov

Despite concerns about a Democratic sweep in the midterms potentially hurting defense stocks, historical data shows defense equities often recover within six months post-election. The article recommends GE Aerospace and RTX as top picks due to their significant commercial aerospace exposure, which provides a buffer against potential cuts to specific military programs. Large defense contractor backlogs tied to readiness, rearmament, and replenishment efforts remain bipartisan priorities.

Zacks Investment Research 28 oct

The State Street SPDR S&P Aerospace & Defense ETF (XAR) is a passively managed fund with $5.01 billion in assets and a low 0.35% expense ratio. The ETF has declined 6.83% year-to-date and 10.5% over the past year, with a medium risk profile (beta of 1.03). It holds a Zacks ETF Rank of 2 (Buy) and is recommended for investors seeking aerospace & defense sector exposure, though alternative options like ITA and PPA are also available.