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ITA - ETF AI Analysis
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iShares U.S. Aerospace & Defense ETF (ITA)
Rating:70Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several top holdings, such as GE Aerospace and Howmet Aerospace, have delivered strong year-to-date performance, driving the fund’s returns.
Focused Sector Exposure
The ETF’s concentration in the aerospace and defense sector allows investors to benefit from targeted growth in this industry.
Healthy Asset Base
With over $11 billion in assets under management, the fund has strong investor interest and liquidity.
Negative Factors
High Concentration in Top Holdings
The top three holdings make up a significant portion of the portfolio, increasing exposure to individual company risks.
Sector Overexposure
The ETF is almost entirely invested in the industrials sector, leaving it vulnerable to downturns in this industry.
Limited Geographic Diversification
The fund is heavily focused on U.S. companies, offering little exposure to international markets.
ITA vs. SPDR S&P 500 ETF (SPY)
AUM11.96B
RegionNorth America
Expense Ratio0.38%
Beta1.00
IssueriShares
Inception DateMay 01, 2006
Dividend Yield0.79%
Asset ClassEquity
Index TrackedDJ US Select / Aerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume415,562
30 Day Avg. Volume770,785
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
247.96Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering39
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ITA Summary
The iShares U.S. Aerospace & Defense ETF (ITA) focuses on companies in the aerospace and defense industries, tracking the performance of this specialized sector in the U.S. economy. It includes well-known names like Boeing and Lockheed Martin, which are leaders in aircraft manufacturing and defense technologies. Investors might consider ITA for its potential long-term growth and stability, driven by government contracts and advancements in technology. However, new investors should be aware that the ETF’s performance is closely tied to the industrial sector, which can be affected by changes in government spending and economic cycles.
How much will it cost me?The iShares U.S. Aerospace & Defense ETF (ITA) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This expense ratio is slightly higher than average because the ETF focuses on a specific sector (aerospace and defense) and tracks a niche index, which typically requires more specialized management compared to broad-market ETFs.
What would affect this ETF?The iShares U.S. Aerospace & Defense ETF (ITA) could benefit from increased government defense spending, technological advancements in aerospace, and growing global security concerns, which drive demand for its top holdings like Boeing and Lockheed Martin. However, potential risks include budget cuts to defense programs, geopolitical tensions affecting supply chains, and regulatory changes that could impact the profitability of companies in the sector.
ITA Top 10 Holdings
The ITA ETF is heavily concentrated in U.S. aerospace and defense companies, with GE Aerospace and RTX leading the charge thanks to strong earnings and robust revenue growth. Howmet Aerospace is also rising steadily, supported by strategic initiatives like share buybacks and debt reduction. However, Boeing and Axon Enterprise are dragging the fund, with Boeing facing financial challenges despite a strong backlog, and Axon struggling with bearish momentum and profitability concerns. Overall, the fund’s industrial focus offers resilience, but mixed performance among key holdings tempers its upward trajectory.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| GE Aerospace | 21.74% | $2.62B | $314.81B | 63.84% | 77 Outperform | |
| RTX | 16.08% | $1.93B | $234.51B | 43.57% | 75 Outperform | |
| Boeing | 7.16% | $860.83M | $143.66B | 21.59% | 44 Neutral | |
| Howmet Aerospace | 4.84% | $582.59M | $82.26B | 72.82% | 77 Outperform | |
| General Dynamics | 4.60% | $553.49M | $92.28B | 20.29% | 80 Outperform | |
| Transdigm Group | 4.60% | $553.00M | $76.60B | 8.56% | 69 Neutral | |
| L3Harris Technologies | 4.40% | $529.18M | $52.13B | 13.17% | 70 Neutral | |
| Lockheed Martin | 4.29% | $516.61M | $105.95B | -13.52% | 70 Outperform | |
| Northrop Grumman | 4.29% | $516.51M | $81.67B | 16.87% | 75 Outperform | |
| Axon Enterprise | 3.14% | $378.17M | $42.62B | -16.51% | 58 Neutral |
ITA Technical Analysis
Positive
―
Price Trends
208.63
Negative
202.42
Positive
182.32
Positive
Market Momentum
-2.14
Positive
47.66
Neutral
65.67
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ITA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 206.46, equal to the 50-day MA of 208.63, and equal to the 200-day MA of 182.32, indicating a neutral trend. The MACD of -2.14 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITA.
ITA Peer Comparison
Comparison Results
Performance Comparison
ITA
iShares U.S. Aerospace & Defense ETF
205.10
53.14
34.97%
VGT
Vanguard Information Technology ETF
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―
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XLK
Technology Select Sector SPDR Fund
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―
―
XLF
Financial Select Sector SPDR Fund
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―
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XLV
Health Care Select Sector SPDR Fund
―
―
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XLI
Industrial Select Sector SPDR Fund
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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