Should You Invest in the First Trust Indxx Aerospace & Defense ETF (MISL)?

Core Insights - The First Trust Indxx Aerospace & Defense ETF (MISL) launched on October 25, 2022, aims to provide broad exposure to the Aerospace & Defense segment of the equity market, appealing to both retail and institutional investors [1][2] Fund Overview - MISL is a passively managed ETF with assets exceeding $201.27 million, positioning it as an average-sized fund within its sector [3] - The ETF seeks to match the performance of the INDXX US AEROSPACE & DEFENSE INDEX before fees and expenses [3][4] Cost Structure - The annual operating expenses for MISL are 0.6%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.55% [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, approximately 97% of its portfolio [6] - General Aerospace Company (GE) represents about 8.56% of total assets, with the top 10 holdings accounting for around 60.33% of total assets under management [7] Performance Metrics - As of September 24, 2025, the ETF has increased by approximately 34.43% year-to-date and 29.72% over the past year, trading between $27.51 and $40.85 in the last 52 weeks [8] - The ETF has a beta of 0.65 and a standard deviation of 17.08% over the trailing three-year period, indicating more concentrated exposure than its peers [8] Alternatives - MISL holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns, expense ratio, and momentum [9] - Other ETFs in the Aerospace & Defense space include Invesco Aerospace & Defense ETF (PPA) with $6.49 billion in assets and iShares U.S. Aerospace & Defense ETF (ITA) with $11.28 billion [11]