Highlights

  • Aerospace and defense ETFs provide diverse exposure to a sector vital for national security and innovation.
  • ITA, PPA, and XAR track distinct defense-linked indexes with varied weighting methods.
  • Exposure spans aircraft manufacturing, defense systems, homeland security, and space industries.

The aerospace and defense sector plays a critical role in national security, advanced manufacturing, and technological development. Exchange-traded funds (ETFs) such as ITA, PPA, and XAR provide access to this specialized segment through varied strategies and portfolio compositions. These funds reflect different approaches to capturing the performance of U.S.-based aerospace and defense companies, including exposure to aircraft producers, defense contractors, and suppliers across both commercial and military domains.

iShares U.S. Aerospace & Defense ETF (ITA)

The iShares U.S. Aerospace & Defense ETF (ITA) offers targeted exposure to the U.S. aerospace and defense industry, a sector closely tied to national security, technological innovation, and government spending trends. Managed by BlackRock, ITA seeks to track the performance of the Dow Jones U.S. Select Aerospace & Defense Index, investing in leading companies that design, manufacture, and support aircraft, defense systems, and related technologies.

Price Performance

As of December 12, 2025, ITA has posted notable gains, achieving annualized returns of roughly 44.99% in the past year. Year-to-date, the fund is up nearly 43.26%.

Invesco Aerospace & Defense ETF (PPA)

The Invesco Aerospace & Defense ETF (PPA) provides exposure to U.S. companies involved in the development, manufacturing, operations, and support of products and services related to aerospace and defense. The fund seeks to track the SPADE™ Defense Index, which includes companies across defense, homeland security, and space industries. Managed by Invesco, PPA offers investors an opportunity to access this specialized sector through a single, diversified ETF.

Price Performance

As of December 03, 2025, PPA has delivered positive returns, with YTD NAV growth of about 32.24%.

SPDR® S&P® Aerospace & Defense ETF (XAR)

The SPDR® S&P® Aerospace & Defense ETF (XAR) offers focused exposure to the U.S. aerospace and defense industry by tracking the S&P Aerospace & Defense Select Industry Index. Unlike some peers that are heavily weighted toward the largest firms, XAR uses an equal-weight strategy, giving balanced exposure to both large and smaller companies across the sector. Managed by State Street Global Advisors, the fund captures businesses involved in manufacturing, assembling, and distributing aerospace and defense equipment, components, and services.

Price Performance

As of December 16, 2025, the fund has provided a return of around 31.60% in the past year.

However, it's important to remember that past performance is not a reliable indicator of future results. When selecting an ETF, it's essential to consider individual sector preferences, risk tolerance, and the specific performance of the underlying index.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Abbreviations

CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index