ITA vs JETS: Which Is the High Flying Airline and Aerospace ETF to Profit From in 2026?

Comparing iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA) and U.S. Global Jets ETF (NYSEMKT:JETS) reveals distinct paths for aviation investors, with the iShares fund providing broader defense exposure at a lower cost than the airline-heavy U.S. Global fund.

Investors interested in the aviation industry must decide between the volatile nature of global airline operators and the industrial stability of aerospace manufacturers. iShares U.S. Aerospace & Defense ETF and U.S. Global Jets ETF provide these distinct exposures, each responding differently to fuel prices, defense spending, and travel demand.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Aug. 20, 2026.

At 0.37%, the iShares fund is more affordable than the 0.6% charged by the U.S. Global fund. While income is a secondary consideration for both, the U.S. Global fund currently offers a higher payout, providing a 0.8% yield compared to the 0.4% offered by the iShares fund.

Performance & risk comparison

What's inside

The iShares U.S. Aerospace & Defense ETF provides concentrated exposure to the domestic defense and aviation manufacturing sectors, with its portfolio primarily composed of industrials at 98%. Its largest positions include GE Aerospace (NYSE:GE) at 22.1%, RTX Corp (NYSE:RTX) at 17%, and Boeing Co (NYSE:BA) at 9%. The fund holds 49 securities and was launched in 2006. iShares U.S. Aerospace & Defense ETF has paid $1.1 per share over the trailing 12 months, which on its recent ~$237.6 share price works out to a 0.4% yield.

U.S. Global Jets ETF tracks the global airline industry, focusing on operators and manufacturers worldwide rather than defense contracting. Its top holdings include United Airlines Holdings (NASDAQ:UAL) at 10.7%, American Airlines Group (NASDAQ:AAL) at 10.5%, and Delta Air Lines (NYSE:DAL) at 10.4%. The fund manages a portfolio of 48 holdings and was launched in 2015. Sector weights were not reported. U.S. Global Jets ETF has paid $0.2 per share over the trailing 12 months, which on its recent ~$29.3 share price works out to a 0.8% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?

Both of these ETFs provide access to the aerospace industry, but they have key differences an investor should examine before deciding on which one to invest in.

One primary difference is that JETS, the U.S. Global fund, is focusing solely on the commercial aerospace business, mainly consumer travel on aircraft. That's a boom-and-bust industry, where intense competition over airfare pricing makes it difficult for most airlines to post consistent profits. JETS is also much more weighted to small and mid-cap stocks. The ETF holds 35% of its portfolio in small caps and 44% in mid cap stocks.

ITA, the iShares fund, focuses on the defense-related stocks in aerospace. It's all U.S.-listed stocks, as opposed to about 78% U.S. holdings for JETS. ITA is more focused on large-cap stocks, mostly growth issues, with 61% of its holdings classified as large caps, with 30% mid caps, and 8% small caps.

Both have some similarities, however. Mainly, each is highly concentrated on its top ten holdings, with JETS dedicating 62% of its assets to the cohort while ITA is higher than that, at 77%.

What really matters is performance. Year to date 2026, both are just about neck and neck, each with close to 12% YTD returns. But looking back further, ITA separates itself with its defense stock focus. The fund has returned annualized rates of 27.6%, 18.2%, and 15.1% over the 3-year, 5-year, and 10-year time frames. By comparison, JETS returns 13.9%, 6.8%, and 2.9% over the 3-, 5-, and 10-year look-backs, respectively.

For those seeking to bring in aerospace holdings into their portfolio, the best choice is the consistent performer over the long haul. In this case, that's ITA, the iShares U.S. Aerospace & Defense ETF.

Brendan Coffey 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 Delta Air Lines. The Motley Fool has a disclosure policy.