Should You Invest in the iShares U.S. Aerospace & Defense ETF (ITA)?

Core Viewpoint - The iShares U.S. Aerospace & Defense ETF (ITA) is highlighted as a strong investment option for those seeking exposure to the Aerospace & Defense segment of the equity market, offering low costs, transparency, and flexibility for long-term investors [1][2]. Group 1: ETF Overview - ITA is a passively managed ETF launched on May 1, 2006, and is sponsored by Blackrock [1][3]. - The fund has accumulated over $9.19 billion in assets, making it one of the largest ETFs in its sector [3]. - ITA aims to match the performance of the Dow Jones U.S. Select Aerospace & Defense Index [3]. Group 2: Cost and Performance - The annual operating expenses for ITA are 0.38%, positioning it as one of the cheaper options in the market [4]. - The ETF has a 12-month trailing dividend yield of 0.55% [4]. - Year-to-date, ITA has returned approximately 37.13%, with a one-year return of about 40.45% as of September 11, 2025 [7]. Group 3: Holdings and Sector Exposure - ITA has a heavy allocation in the Industrials sector, with about 99.9% of its portfolio [5]. - The top holding, Ge Aerospace (GE), constitutes approximately 21.22% of total assets, followed by Rtx Corp (RTX) and Boeing (BA) [5]. - The top 10 holdings represent about 75.99% of total assets under management [6]. Group 4: Risk and Alternatives - ITA has a beta of 0.90 and a standard deviation of 18.27% over the trailing three-year period, indicating medium risk [7]. - Other ETFs in the Aerospace & Defense space include SPDR S&P Aerospace & Defense ETF (XAR) and Invesco Aerospace & Defense ETF (PPA), with assets of $3.98 billion and $6.26 billion respectively [9].