iShares vs. Global X: Which Defense ETF Looks Best in 2026?

Comparing Global X Defense Tech ETF (NYSEMKT:SHLD) and iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA) reveals differences successful cost, assemblage concentration, and humanities volatility crossed the defence landscape.

These funds people the defence and aerospace sectors but instrumentality chiseled paths. While SHLD focuses connected modern defence exertion with a heavier tech tilt, ITA provides broader vulnerability to established U.S. aerospace and defence contractors. Choosing betwixt them involves weighing caller show against semipermanent assemblage diversification.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The iShares money is somewhat much affordable, with an disbursal ratio of 0.38% compared to the 0.50% charged by the Global X ETF.

Performance & hazard examination

The iShares ETF allocates 100% of its portfolio to industrials, holding 49 stocks successful total. Its largest positions see GE Aerospace (NYSE:GE) astatine 22.14%, RTX (NYSE:RTX) astatine 14.63%, and Boeing (NYSE:BA) astatine 9.35%. This money was launched successful 2006 and has paid $1.06 per stock successful dividends implicit the trailing 12 months.

Conversely, the Global X money launched successful 2023 and holds 50 positions. It has a somewhat broader assemblage mix, with 88% successful industrials and 12% successful technology. Top holdings see RTX astatine 9.03%, General Dynamics (NYSE:GD) astatine 8.74%, and Lockheed Martin (NYSE:LMT) astatine 8.08%. This money has a trailing-12-month dividend payout of $0.36 per share.

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What this means for investors

The iShares money is much than doubly the size of SHLD successful presumption of AUM. However, the Global X ETF has implicit 2 times arsenic overmuch mean trading volume. SHLD has a amended two-year return, but it has underperformed the iShares money importantly implicit the past year. ITA besides has a little disbursal ratio.

So far, truthful good: ITA looks beauteous attractive. But (and that's ever a "but," isn't there?), look astatine the fund's apical 3 holdings. Together, they harvester to marque up much than 45% of the portfolio. GE alone accounts for astir one-fifth of the ETF's value. That's a batch of attraction risk, which is beauteous overmuch the other of what I'm looking for successful an ETF. Other investors whitethorn beryllium good with that, but I privation a diversified handbasket of stocks I don't person to deliberation excessively overmuch about.