SHJ Wealth Advisors Opens $10 Million Position in iShares Defense Industrials Active ETF (IDEF)

What happened

According to a SEC filing dated April 8, 2026, Sharkey, Howes & Javer (SHJ) Wealth Advisors reported a new holding of 311,318 shares in iShares Defense Industrials Active ETF (NASDAQ:IDEF). The estimated transaction value was approximately $10.19 million, calculated using the average closing price for the first quarter of 2026. The quarter-end position value also rose by $10.19 million, combining the share acquisition and price effects.

What else to know

This trade opens a new position, representing 1.37% of Sharkey, Howes & Javer’s 13F reportable assets under management.

• Top holdings after the filing:
  • iShares Core S&P 500 ETF: $70.97 million (9.6% of AUM)
  • iShares Core Total USD Bond Market ETF: $45.44 million (6.1% of AUM)
  • iShares U.S. Equity Factor Rotation Active ETF: $43.62 million (5.9% of AUM)
  • iShares S&P 500 Growth ETF: $41.95 million (5.7% of AUM)
  • iShares S&P 500 Value ETF: $39.62 million (5.3% of AUM)

The iShares Defense Industrials Active ETF (IDEF) has delivered total returns of 35% since its debut in May 2025, doubling the S&P 500’s returns over the same time.

ETF overview

ETF snapshot

IDEF:

• Offers exposure to companies in the defense and industrials sectors through an actively managed ETF structure.
• Generates revenue primarily from management fees and investment returns by allocating capital across selected defense and industrial equities.
• Targets institutional and individual investors seeking diversified access to the defense and industrials segments of public markets.

iShares Defense Industrials Active ETF provides investors with a vehicle to access a curated portfolio of defense and industrial companies. The fund leverages BlackRock's active management expertise to identify opportunities within these sectors, aiming to deliver risk-adjusted returns. Its competitive advantage lies in the combination of sector specialization and the resources of a leading global asset manager.

What this transaction means for investors

SHJ Wealth Advisors’ purchase of iShares Defense Industrials Active ETF (IDEF) is interesting for Foolish investors for a few reasons. First, SHJ has held most of its top positions for multiple years, so there is good reason to think that this may also be a long-term holding for the firm. Second, the firm’s purchase is quite sizable. While it may not be a top-five position, it already accounts for 1.4% of SHJ’s portfolio after just one opening purchase.

Lastly, SHJ’s purchase is noteworthy due to its timing. IDEF has already delivered total returns of 35% since May 2025, yet the firm still believes the best is yet to come. As the broader defense industry modernizes and many countries focus on beefing up their military independence, the IDEF ETF is rather interesting right now. The U.N. projects that global military spending could more than double by 2035, providing a stable tailwind for IDEF.

IDEF not only offers investors a diverse array of traditional defense primes but also provides exposure to next-gen defense stocks such as Palantir (AI-powered software platforms), Rocket Lab (launch services and space systems), and BWX Technologies (nuclear components). That said, while I like the ETF’s holdings, investors should be aware that IDEF’s 0.55% expense ratio is somewhat lofty and will eat into total returns over the long haul. However, for investors not interested in buying individual defense stocks, IDEF is a logical solution -- and it makes a lot of sense in SHJ’s portfolio.

Josh Kohn-Lindquist has positions in Palantir Technologies and Rocket Lab. The Motley Fool has positions in and recommends BWX Technologies, Palantir Technologies, and Rocket Lab. The Motley Fool has a disclosure policy.