Overview
Pure US aerospace & defense sector ETF. 30+ companies spanning commercial aviation, defense systems, satellites, and military services. Strong 2025 performer driven by record defense appropriations and NATO budget increases.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| LMT | Lockheed Martin | 17.4% |
| RTX | RTX Corp. | 16.8% |
| NOC | Northrop Grumman | 11.4% |
| GD | General Dynamics | 8.8% |
| GE | GE Aerospace | 7.4% |
| LHX | L3Harris Tech. | 5.8% |
| HWM | Howmet Aerospace | 4.4% |
| BA | Boeing Co. | 4.2% |
| LDOS | Leidos Holdings | 3.8% |
| TDG | TransDigm Group | 3.4% |
Fund Details
Investment Thesis
ITA provides concentrated exposure to the US defense and aerospace industry at a time when geopolitical tensions are driving the largest sustained increase in global defense budgets since the Cold War. Unlike broader sector funds, ITA's 35-stock portfolio maintains deep concentration in the prime defense contractors who capture the largest share of Pentagon appropriations — Lockheed, RTX, Northrop, and General Dynamics together represent over 50% of the fund. Record US defense budgets, NATO member spending commitments, and new weapons program spending cycles create visible multi-year revenue growth visibility for these companies.
Who It's For
Investors with a geopolitical risk thesis and conviction that defense budgets will remain elevated for years driven by NATO commitments, Indo-Pacific security concerns, and domestic US defense modernization. ITA suits those who want concentrated exposure to the established prime defense contractors with proven revenue visibility rather than the emerging defense technology companies in funds like SHLD. A natural inflation hedge as defense contracts typically have cost-plus provisions.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $142.18 | -- |
| 2017 | $178.42 | +25.5% |
| 2018 | $178.42 | 0.0% |
| 2019 | $234.42 | +31.4% |
| 2020 | $196.42 | -16.2% |
| 2021 | $244.42 | +24.4% |
| 2022 | $238.42 | -2.5% |
| 2023 | $248.42 | +4.2% |
| 2024 | $131.18 | -- |
| 2025 | $168.50 | +28.4% |
| Year | Yield |
|---|---|
| 2016 | 0.82% |
| 2017 | 0.72% |
| 2018 | 0.82% |
| 2019 | 0.72% |
| 2020 | 0.88% |
| 2021 | 0.72% |
| 2022 | 0.82% |
| 2023 | 0.72% |
| 2024 | 0.78% |
| 2025 | 0.82% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $3B | -- |
| 2017 | $4B | +33.3% |
| 2018 | $4B | 0.0% |
| 2019 | $5B | +25.0% |
| 2020 | $4B | -20.0% |
| 2021 | $5B | +25.0% |
| 2022 | $5B | 0.0% |
| 2023 | $6B | +20.0% |
| 2024 | $5B | -16.7% |
| 2025 | $6.1B | +22.0% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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