Comparing Global X Defense Tech ETF (NYSEMKT:SHLD) and iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA) highlights distinct strategies in cost, sector focus, and volatility within the defense industry.
SHLD emphasizes modern defense technology with a tech-heavy portfolio, while ITA offers broader exposure to established U.S. aerospace and defense contractors. The choice hinges on balancing short-term performance with long-term sector diversification.
Snapshot (Cost & Size)
Beta measures price volatility relative to the S&P 500; 1-yr return reflects trailing 12-month total return. Dividend yield represents trailing-12-month distributions.
iShares has a lower expense ratio (0.38%) compared to Global X’s 0.50%.
Performance & Risk Comparison
The iShares ETF is fully invested in industrials (49 holdings), dominated by GE Aerospace (22.14%), RTX (14.63%), and Boeing (9.35%). Launched in 2006, it paid $1.06 per share in dividends over the past year.
Global X, launched in 2023, holds 50 positions with 88% in industrials and 12% in tech. Top holdings include RTX (9.03%), General Dynamics (8.74%), and Lockheed Martin (8.08%), with a $0.36 trailing-12-month dividend.
Concentration Risk Considerations
iShares’ portfolios are heavily concentrated, with its top three holdings comprising over 45% of the fund. GE alone accounts for ~20% of value, posing significant concentration risk. In contrast, Global X’s diversification across more holdings may better align with investors seeking reduced idiosyncratic risk.