iShares vs. Global X: Which Defense ETF Looks Best in 2026?
Key Points
iShares U.S. Aerospace & Defense ETF offers a lower expense ratio and has generated a 28.9% one-year total return compared to a negative return for Global X Defense Tech ETF.
The Global X ETF includes a 12% allocation to technology companies while iShares' fund is fully concentrated in the industrials sector.
The iShares ETF has significantly more assets under management (AUM) and a much longer track record than Global X's fund.
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Comparing Global X Defense Tech ETF (NYSEMKT:SHLD) and iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA) reveals differences in cost, sector concentration, and historical volatility across the defense landscape.
These funds target the defense and aerospace sectors but take distinct paths. While SHLD focuses on modern defense technology with a heavier tech tilt, ITA provides broader exposure to established U.S. aerospace and defense contractors. Choosing between them involves weighing recent performance against long-term sector diversification.
Snapshot (cost & size)
| Metric | SHLD | ITA |
|---|---|---|
| Issuer | Global X | iShares |
| Expense ratio | 0.50% | 0.38% |
| 1-yr return (as of June 26, 2026) | -3% | 28.9% |
| Dividend yield | 0.5% | 0.5% |
| Beta | 0.32 | 0.73 |
| AUM | $6.8 billion | $14.1 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is slightly more affordable, with an expense ratio of 0.38% compared to the 0.50% charged by the Global X ETF.
Performance & risk comparison
| Metric | SHLD | ITA |
|---|---|---|
| Max drawdown (2 yr) | (22.4%) | (15.8%) |
| Growth of $1,000 over 2 years (total return) | $1,839 | $1,777 |
The iShares ETF allocates 100% of its portfolio to industrials, holding 49 stocks in total. Its largest positions include GE Aerospace (NYSE:GE) at 22.14%, RTX (NYSE:RTX) at 14.63%, and Boeing (NYSE:BA) at 9.35%. This fund was launched in 2006 and has paid $1.06 per share in dividends over the trailing 12 months.
Conversely, the Global X fund launched in 2023 and holds 50 positions. It has a slightly broader sector mix, with 88% in industrials and 12% in technology. Top holdings include RTX at 9.03%, General Dynamics (NYSE:GD) at 8.74%, and Lockheed Martin (NYSE:LMT) at 8.08%. This fund has a trailing-12-month dividend payout of $0.36 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The iShares fund is more than twice the size of SHLD in terms of AUM. However, the Global X ETF has over two times as much average trading volume. SHLD has a better two-year return, but it has underperformed the iShares fund significantly over the past year. ITA also has a lower expense ratio.
So far, so good: ITA looks pretty attractive. But (and that's always a "but," isn't there?), look at the fund's top three holdings. Together, they combine to make up more than 45% of the portfolio. GE alone accounts for about one-fifth of the ETF's value. That's a lot of concentration risk, which is pretty much the opposite of what I'm looking for in an ETF. Other investors may be fine with that, but I want a diversified basket of stocks I don't have to think too much about.
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Erin Kennedy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, and RTX. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
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