iShares vs. Invesco: Which Aerospace ETF Is Best for Your Portfolio in 2026?

Erin Kennedy, The Motley Fool

Thu, June 25, 2026 astatine 9:20 AM CDT 4 min read

Investors looking for little costs and a much concentrated stake connected large defence contractors whitethorn favour iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA), portion Invesco Aerospace & Defense ETF (NYSEMKT:PPA) offers a somewhat broader industrials mix.

These 2 exchange-traded funds service arsenic superior gateways for investors seeking to capitalize connected the U.S. aerospace and defence sectors. While some way companies that physique combatant jets, satellites, and naval vessels, they disagree successful however they value their portfolios and the costs they complaint for that exposure.

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 ETF is much affordable for semipermanent holders, carrying an disbursal ratio of 0.38% compared to 0.58% for the Invesco fund. The ETFs connection akin trailing-12-month dividend yields.

Performance & hazard examination

The iShares ETF focuses connected 49 holdings, making it a comparatively concentrated enactment for those who privation vulnerability to the biggest manufacture players. 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 a trailing-12-month dividend payout of $1.06 per share. Because it targets a prime scale of U.S. companies successful the aviation and defence industries, its show is heavy tied to these large contractors.

The Invesco money holds 61 securities and offers a somewhat broader scope crossed the defence ecosystem. Its apical holdings see GE astatine 9.26%, Boeing astatine 8.47%, and RTX astatine 7.19%. Launched successful 2005, the Invesco money maintains a 91% value successful industrials and 9% successful technology, and it has a trailing-12-month dividend payout of $0.79 per share. This money is non-diversified, allowing it to support important weightings successful companies that are systematically important to nationalist information and authorities abstraction operations.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.