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Should You Invest in the iShares U.S. Aerospace & Defense ETF (ITA)?
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Launched on 05/01/2006, the iShares U.S. Aerospace & Defense ETF (ITA - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Aerospace & Defense segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.03 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. ITA seeks to match the performance of the Dow Jones U.S. Select Aerospace & Defense Index before fees and expenses.
The Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.50% of the portfolio.
Looking at individual holdings, Rtx Corp (RTX - Free Report) accounts for about 17.31% of total assets, followed by Boeing (BA - Free Report) and Lockheed Martin Corp (LMT - Free Report) .
The top 10 holdings account for about 76.52% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Aerospace & Defense ETF has gained about 2.40% so far, and it's up approximately 12.94% over the last 12 months (as of 04/24/2024). ITA has traded between $103.16 and $131.93 in this past 52-week period.
The ETF has a beta of 0.98 and standard deviation of 18.91% for the trailing three-year period, making it a medium risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Aerospace & Defense ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ITA is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Aerospace & Defense ETF (XAR - Free Report) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA - Free Report) tracks SPADE Defense Index. SPDR S&P Aerospace & Defense ETF has $2.03 billion in assets, Invesco Aerospace & Defense ETF has $3.03 billion. XAR has an expense ratio of 0.35% and PPA charges 0.58%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares U.S. Aerospace & Defense ETF (ITA)?
Launched on 05/01/2006, the iShares U.S. Aerospace & Defense ETF (ITA - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Aerospace & Defense segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.03 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. ITA seeks to match the performance of the Dow Jones U.S. Select Aerospace & Defense Index before fees and expenses.
The Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.50% of the portfolio.
Looking at individual holdings, Rtx Corp (RTX - Free Report) accounts for about 17.31% of total assets, followed by Boeing (BA - Free Report) and Lockheed Martin Corp (LMT - Free Report) .
The top 10 holdings account for about 76.52% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Aerospace & Defense ETF has gained about 2.40% so far, and it's up approximately 12.94% over the last 12 months (as of 04/24/2024). ITA has traded between $103.16 and $131.93 in this past 52-week period.
The ETF has a beta of 0.98 and standard deviation of 18.91% for the trailing three-year period, making it a medium risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Aerospace & Defense ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ITA is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Aerospace & Defense ETF (XAR - Free Report) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA - Free Report) tracks SPADE Defense Index. SPDR S&P Aerospace & Defense ETF has $2.03 billion in assets, Invesco Aerospace & Defense ETF has $3.03 billion. XAR has an expense ratio of 0.35% and PPA charges 0.58%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.