ITA - ETF AI Analysis
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iShares U.S. Aerospace & Defense ETF (ITA)
Rating:69Neutral
Price Target:―
Positive Factors
Large Asset Base
The ETF manages a substantial amount of money, which can support liquidity and trading ease for investors.
Strong Recent Performance from Several Key Holdings
Holdings like Howmet Aerospace, L3Harris Technologies, Lockheed Martin, and Rocket Lab USA have shown strong gains this year, helping support the fund’s overall results.
Focused Exposure to U.S. Aerospace and Defense
The fund’s concentration in U.S. industrial aerospace and defense companies offers targeted access to a specific, well-defined industry theme.
Negative Factors
High Concentration in a Few Stocks
A large portion of the portfolio is tied up in a small number of companies such as GE Aerospace, RTX, and Boeing, which increases the impact of any weakness in these names.
Mixed Performance Among Top Holdings
Some major positions, including GE Aerospace, Transdigm Group, and General Dynamics, have shown weak performance this year, which can drag on the ETF’s returns.
Narrow Sector and Geographic Focus
With almost all assets in U.S. industrial aerospace and defense stocks, the fund offers limited diversification across sectors and countries, making it more sensitive to downturns in this specific area.
ITA vs. SPDR S&P 500 ETF (SPY)
AUM13.64B
RegionNorth America
Expense Ratio0.38%
Beta1.01
IssueriShares
Inception DateMay 01, 2006
Dividend Yield0.61%
Asset ClassEquity
Index TrackedDJ US Select / Aerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume1,150,131
30 Day Avg. Volume1,219,704
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
270.30Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering44
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ITA Summary
The iShares U.S. Aerospace & Defense ETF (ITA) tracks the Dow Jones U.S. Select Aerospace & Defense Index, focusing on U.S. companies that build aircraft, defense systems, and related parts. It holds well-known names like Boeing and Lockheed Martin, giving investors a simple way to invest in the aerospace and defense theme without picking individual stocks. Someone might consider ITA for potential long-term growth supported by government defense spending and ongoing demand for air travel and security. However, this ETF is concentrated in one sector, so its price can swing sharply with changes in defense budgets, wars, or political decisions.
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
ITA is heavily tilted toward U.S. aerospace and defense giants, with GE Aerospace and RTX sitting in the captain’s chair but recently losing altitude, weighing on near-term returns. Boeing has been a bit of a roller coaster—rising lately but still dealing with earlier turbulence. On the brighter side, Howmet Aerospace and defense stalwarts like Lockheed Martin are providing a steadier lift, while fast-moving Rocket Lab adds a high-risk, high-reward edge. Overall, this is a concentrated U.S. industrials play, tightly focused on defense and aerospace innovation.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| GE Aerospace | 19.31% | $2.59B | $296.93B | 41.67% | 72 Outperform | |
| RTX | 15.06% | $2.02B | $234.67B | 38.93% | 74 Outperform | |
| Boeing | 10.48% | $1.41B | $183.23B | 26.90% | 54 Neutral | |
| Howmet Aerospace | 4.78% | $641.22M | $97.15B | 77.26% | 67 Neutral | |
| Transdigm Group | 4.58% | $614.57M | $64.84B | -17.01% | 69 Neutral | |
| General Dynamics | 4.40% | $589.65M | $84.83B | 14.93% | 80 Outperform | |
| L3Harris Technologies | 4.38% | $587.34M | $59.30B | 46.49% | 70 Neutral | |
| Lockheed Martin | 3.93% | $527.69M | $118.38B | 7.78% | 70 Outperform | |
| Northrop Grumman | 3.90% | $523.83M | $81.68B | 19.03% | 76 Outperform | |
| Rocket Lab USA | 3.30% | $442.87M | $45.88B | 262.99% | 57 Neutral |
ITA Technical Analysis
Negative
―
Price Trends
229.67
Negative
228.00
Negative
215.40
Positive
Market Momentum
-3.57
Positive
40.58
Neutral
20.31
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ITA, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 224.72, equal to the 50-day MA of 229.67, and equal to the 200-day MA of 215.40, indicating a neutral trend. The MACD of -3.57 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITA.
ITA Peer Comparison
Comparison Results
Performance Comparison
ITA
iShares U.S. Aerospace & Defense ETF
216.27
55.88
34.84%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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XLF
Financial Select Sector SPDR Fund
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XLE
Energy 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.
DisclaimerThis 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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