ITA - ETF AI Analysis

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

Rating:70Neutral

Price Target:―

ITA, the iShares U.S. Aerospace & Defense ETF, has a solid overall rating driven mainly by large positions in financially strong companies like GE Aerospace, RTX, Northrop Grumman, and General Dynamics, all of which show healthy performance, strong backlogs, and positive earnings outlooks. However, weaker holdings such as Boeing and Rocket Lab, which face profitability, leverage, and operational challenges, weigh on the fund’s rating. The main risk factor is the ETF’s concentration in a single industry—U.S. aerospace and defense—which makes it sensitive to sector-specific issues like government spending, regulation, and supply chain disruptions.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in the aerospace and defense sector.

Leading Defense and Aerospace Companies

Many of the top holdings, including major defense contractors and aerospace firms, have delivered strong year-to-date performance, helping drive the fund’s returns.

Large Asset Base

The fund manages a substantial amount of assets, which can support liquidity and trading ease for investors.

Negative Factors

High Stock Concentration

A small number of companies, especially the largest holding, make up a big share of the portfolio, increasing the impact if any of them run into trouble.

Single-Sector Focus

Almost all of the ETF is invested in industrials within aerospace and defense, so it may be hit hard if this specific industry faces a downturn.

Limited Geographic Diversification

The fund is almost entirely invested in U.S. companies, offering little exposure to aerospace and defense firms in other regions.

ITA vs. SPDR S&P 500 ETF (SPY)

AUM15.89B

RegionNorth America

Expense Ratio0.38%

Beta1.00

IssueriShares

Inception DateMay 01, 2006

Dividend Yield0.66%

Asset ClassEquity

Index TrackedDJ US Select / Aerospace & Defense

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume729,412

30 Day Avg. Volume815,135

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

272.56

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering41

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 in the aerospace and defense industry. It holds well-known names like Boeing and Lockheed Martin, along with other firms that make aircraft, defense systems, and related parts and services. Someone might invest in ITA to get targeted exposure to a sector supported by government spending and long-term defense and aviation needs, without having to pick individual stocks. A key risk is that it is heavily concentrated in one sector, so it can rise or fall sharply with changes in defense budgets and industry news.

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 doing much of the heavy lifting as their shares keep climbing on solid earnings and big backlogs. Lockheed Martin and Howmet Aerospace are also rising, giving the fund a strong tailwind from both defense contracts and commercial aerospace demand. Boeing is more of a wild card—recent gains have been choppy as it works through operational issues—while Axon is clearly losing steam and acting as a drag. Overall, this is a concentrated U.S. industrials play, not a broad global mix.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
GE	GE Aerospace	21.07%	$3.35B	$345.67B	71.76%	72 Outperform
RTX	RTX	15.99%	$2.54B	$274.91B	66.21%	74 Outperform
BA	Boeing	7.70%	$1.22B	$187.64B	30.98%	54 Neutral
LMT	Lockheed Martin	5.29%	$841.47M	$149.51B	49.36%	70 Outperform
HWM	Howmet Aerospace	5.05%	$802.47M	$99.97B	98.80%	67 Neutral
NOC	Northrop Grumman	4.90%	$779.33M	$102.87B	61.52%	76 Outperform
LHX	L3Harris Technologies	4.69%	$745.02M	$65.77B	78.95%	70 Neutral
TDG	Transdigm Group	3.87%	$614.74M	$74.28B	3.79%	69 Neutral
GD	General Dynamics	3.86%	$614.23M	$94.50B	44.58%	80 Outperform
AXON	Axon Enterprise	2.79%	$443.33M	$33.94B	-15.45%	58 Neutral

ITA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

228.02

Positive

100DMA

218.17

Positive

200DMA

203.33

Positive

Market Momentum

MACD

3.40

Negative

RSI

60.83

Neutral

STOCH

82.44

Negative

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 234.81, equal to the 50-day MA of 228.02, and equal to the 200-day MA of 203.33, indicating a bullish trend. The MACD of 3.40 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITA.

ITA Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
ITA	―	―	$15.89B	0.38%	70 Neutral
VGT	―	―	$110.83B	0.09%	74 Outperform
XLK	―	―	$88.42B	0.08%	76 Outperform
XLF	―	―	$51.94B	0.08%	72 Outperform
XLV	―	―	$41.69B	0.08%	73 Outperform
XLI	―	―	$31.42B	0.08%	72 Outperform

Performance Comparison

ITA

iShares U.S. Aerospace & Defense ETF

243.65

95.00

63.91%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

XLI

Industrial Select Sector SPDR Fund

―

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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