Markets turned cautious after President Donald Trump hinted at further escalation in the Iran conflict, and the impact is already showing a split across sectors. Defense-linked assets are moving higher, while energy names are seeing more mixed performance.
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Using TipRanks’ Best BlackRock ETFs tool, we identified two funds — the iShares U.S. Aerospace & Defense ETF (ITA) and the iShares U.S. Oil & Gas Exploration & Production ETF (IEO)—as investors rotate toward energy and defense exposure.
Investors can use TipRanks’ Compare ETFs tool to analyze options side by side. Let’s take a closer look at these ETFs.
iShares U.S. Aerospace & Defense ETF (ITA)
The iShares U.S. Aerospace & Defense ETF (ITA) gives investors exposure to major U.S. defense contractors and aerospace firms. The fund tends to benefit when geopolitical tensions rise and governments increase defense spending. ITA focuses on North American equities and holds 46 stocks, with its top 10 positions accounting for about 75% of assets.
Top holdings include GE Aerospace (GE), RTX Corporation (RTX), Boeing (BA), and Lockheed Martin (LMT). The ETF manages roughly $13 billion in assets and has gained more than 37% over the past year.
iShares U.S. Oil & Gas Exploration & Production ETF (IEO)
The iShares U.S. Oil & Gas Exploration & Production ETF (IEO) provides targeted exposure to U.S. oil producers and exploration companies. The fund typically benefits when crude prices climb, as it is more sensitive to upstream energy firms.
IEO holds 48 stocks, with the top 10 positions making up about 70% of assets. Its largest holdings include ConocoPhillips (COP), EOG Resources (EOG), and Phillips 66 (PSX). The ETF manages about $665.95 million in assets and is up roughly 33% over the past year.
