iShares U.S. Aerospace & Defense ETF (ITA) is an exchange-traded fund that seeks to track the performance of an index that consists of U.S. companies operating in the aerospace and defense industry. The ETF is managed by BlackRock and trades under the ticker ITA on the Cboe BZX Exchange.

Classified as a sector-focused equity ETF, ITA aims to reflect, before fees and expenses, the performance of companies engaged in defense, aviation, and aerospace technology activities.

The fund follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting defined by the Dow Jones U.S. Select Aerospace & Defense Index, that includes U.S.-listed companies involved in the development, manufacturing, and supply of aerospace and defense-related products and services.

Constituent selection is based on sector classification and liquidity criteria. The index undergoes periodic reviews, including rebalancing and composition adjustments, which are reflected in the ETF’s holdings.

Diversification and sector exposure

ITA provides concentrated exposure to the industrial sector, specifically aerospace and defense activities. Diversification occurs within the segment, covering different operational specializations, including:

• Aerospace manufacturing.
• Defense contractors.
• Aviation-related industries.
• Specialized industrial equipment.
• Security-related technologies.

This structure reflects the strategic importance of aerospace and defense industries within the U.S. economy.

Structure and costs

ITA shares trade on the secondary market during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee and does not apply a performance fee. ITA distributes income periodically, primarily derived from dividends paid by underlying portfolio companies.

History and evolution of the ETF

iShares U.S. Aerospace & Defense ETF was launched in 2006 during the expansion of sector-based ETFs in the United States.

In recent years, the ETF has reflected significant developments in the sector, including the pandemic’s impact on commercial aviation, increased global defense spending, heightened geopolitical tensions, and renewed investment in aerospace and security technologies.

Its performance has been closely linked to structural shifts in defense budgets and aerospace demand.

Additional Information

iShares U.S. Aerospace & Defense ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $12.88 billion.

Over the past 12 months, iShares U.S. Aerospace & Defense ETF recorded a return of 9.14%, with its price trading between $198.23 and $253.22 during the same period.

The ETF is traded under the ticker ITA.