ITA ETF

ITA (iShares U.S. Aerospace & Defense ETF) is an exchange-traded fund that provides access to the leading U.S. aerospace, defense and space companies within a single investment.

The fund's objective is to invest in companies that design and manufacture military and civil aircraft, missile and space systems, defense electronics, engines and components. Aerospace and defense is a strategic sector whose demand is driven by government budgets and long-term defense programs. Amid rising geopolitical tensions, defense spending worldwide has reached its highest levels in decades.

ITA was launched in May 2006 and is the largest and most liquid ETF in the U.S. aerospace and defense sector.

Sponsor of the Trust: iShares by BlackRock – the world's largest ETF provider, part of BlackRock, a global investment company with over $10 trillion in assets under management. BlackRock is headed by Larry Fink.

ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index, which includes U.S. companies in the aerospace and defense sector. The index is reviewed on a regular basis.

The fund trades on a U.S. exchange and is available to investors as a standard ETF instrument.

What are you actually investing in?

By investing in ITA, you invest in the shares of the leading U.S. aerospace and defense companies – from engine and aircraft manufacturers to Department of Defense contractors.

ITA's return is generated by:

• the rise or fall in the market value of the shares of the companies in the portfolio;
• dividends paid by the companies.

The investment is directly tied to the business results of defense and aerospace companies. The key drivers of return are the size of military budgets, government contracts, arms exports and demand for civil aviation.

Fund composition

ITA's portfolio includes about 50 companies covering the key segments of the industry:

• Aircraft engines and aerospace components – manufacturers of engines and components for aviation and space. 
  GE Aerospace (~22%), RTX (~15%), Howmet Aerospace (~5%), TransDigm
• Defense systems and weapons – the leading U.S. Department of Defense contractors. 
  Lockheed Martin, Northrop Grumman, General Dynamics
• Aircraft manufacturing – production of civil and military aircraft. 
  Boeing (~9%)
• Defense and security technologies – companies developing defense electronics and protective technologies. 
  Axon Enterprise

The weights of the companies in the index are determined by market capitalization with a cap on the maximum share. The composition is reviewed under the methodology of the Dow Jones index.

How the structure works

ITA uses a classic ETF structure:

• the companies' shares are recorded and held within the fund's custodial infrastructure through licensed custodians;
• the fund's structure is fully transparent and disclosed daily;
• the fund is overseen by U.S. regulators and auditors.

The fund's AUM is ~$14 billion. As an index fund, ITA follows the composition and weights of the Dow Jones U.S. Select Aerospace & Defense Index.

Fees and distributions

The investor's income is generated by changes in the fund's market value and dividends. You purchase a share in ITA at the current price and realize it upon exit.

Total Expense Ratio (TER): 0.38% per year; 
The fund's dividend yield is ~0.33%.

When purchasing ITA through the Regolith platform, an entry fee of 2% of the transaction amount is charged. Performance fee: 0%.

ITA's role in an investment portfolio

ITA is viewed as an instrument for participating in the growth of the defense and aerospace sector. The fund can be used for the following purposes:

• Growth in defense budgets – global defense spending has reached its highest levels in decades; NATO countries are increasing their budgets, Europe is rearming, and the US maintains the world's largest military budget.
• Long-term government contracts – defense contractors work under multi-year government contracts, which provides stable and predictable revenue.
• Recovery of civil aviation – demand for new aircraft and components grows along with the recovery of air travel.
• Diversification – about 50 companies from different segments of aerospace and defense within a single instrument.
• An alternative to individual stocks – instead of betting on a single company, the investor gets a basket of the sector's leading players.

The defense sector: the current context

The aerospace and defense sector is going through one of its strongest periods in recent years. In 2025, the ITA ETF gained about +49% amid rising geopolitical tensions, increasing defense budgets and high demand for military technologies. The fund's CAGR for 2021–2025 was about +18.8% per year.

The fundamental picture remains strong. NATO countries continue to increase defense spending, Europe is launching large-scale rearmament programs, and demand is shifting toward modern air-defense systems, drones, satellite infrastructure, cybersecurity and precision weapons. This forms a long-term order cycle for the sector's largest contractors.

Additional support comes from the recovery of civil aviation. Air travel is returning to growth, airlines are renewing their fleets, and Boeing, Airbus and engine manufacturers maintain large order backlogs for years ahead.

Aerospace and defense look like a resilient sector for long-term observation: demand here is supported by government budgets, long-term defense programs and multi-year contracts. At the same time, the sector remains sensitive to political decisions, budget cycles, company valuations and overall market conditions.

Risks

Investing in ITA involves a number of factors typical of the defense and aerospace sector:

• Dependence on government budgets – companies' revenue largely depends on military spending; budget cuts or contract delays may affect the sector.
• Political and geopolitical risks – changes in foreign policy, peace settlements or restrictions on arms exports may shift demand.
• Concentration – the largest positions (GE Aerospace and RTX) account for about 37% of assets, which increases dependence on individual companies.
• Civil aviation risks – aircraft manufacturers (Boeing) are exposed to production problems and air-travel demand cycles.
• Single-sector concentration – ITA invests only in aerospace and defense, which rules out diversification across economic sectors.

As an equity instrument, the fund is subject to market fluctuations and does not guarantee a positive result. An investor may lose part or all of their investment.

Instrument parameters

• Ticker: ITA
• Type: aerospace & defense ETF
• Exchange: Cboe BZX
• Management type: Passive (index)
• Index: Dow Jones U.S. Select Aerospace & Defense Index
• Number of companies: ~50
• AUM: ~$14 billion
• Expense Ratio: 0.38%
• ISIN: US4642887602
• Morningstar Rating: ★★★★

The investor's income is generated by changes in the fund's market value and dividends.

Deposit and withdrawal specifics via Regolith

ITA is purchased in a working mode without being tied to a fixed date. Trades are formed 1–3 times a week.

• Minimum investment period – 1 week
• Minimum amount – $50
• Entry fee – 2%
• Performance fee – 0%

Withdrawals are processed under the platform's standard procedure after the minimum investment period is completed.

1. What is ITA?

ITA is an exchange-traded fund (ETF) that lets you invest in about 50 U.S. aerospace and defense companies in a single purchase. The fund provides access to a strategic sector whose demand is driven by government defense budgets at their highest levels in decades.

2. Who manages the fund?

The fund is issued and managed by iShares by BlackRock – the world's largest ETF provider, part of BlackRock, a global investment company with over $10 trillion in assets under management.

3. What exactly am I investing in when I buy ITA?

By buying ITA, you invest in the shares of about 50 U.S. aerospace and defense companies: manufacturers of aircraft engines, aircraft, missile and space systems, defense electronics and components, as well as Department of Defense contractors. This is participation in the combined performance of the entire sector.

4. Is this an actively managed fund?

No. ITA is a passive index fund. It tracks the Dow Jones U.S. Select Aerospace & Defense Index. The composition is reviewed under the index methodology.

5. Which companies are in the fund?

• Aircraft engines and components: GE Aerospace (~22%), RTX (~15%), Howmet Aerospace (~5%), TransDigm
• Defense contractors: Lockheed Martin, Northrop Grumman, General Dynamics
• Aircraft manufacturing: Boeing (~9%)
• Defense technologies: Axon Enterprise

6. Does the fund's composition change?

Yes. The composition is updated when the Dow Jones index is reviewed. Companies are added or removed based on their sector membership, market capitalization and liquidity.

7. What are the fund's fees?

When buying ITA through the Regolith platform:

• entry fee – 2%
• performance fee – 0%

The fund's Expense Ratio (TER) is 0.38% per year.

8. What role does ITA play in an investment portfolio?

ITA is used as a thematic instrument for participating in the growth of the defense and aerospace sector. The fund provides exposure to an industry that relies on government budgets and long-term contracts, and lets you replace a bet on a single company with a diversified basket of about 50 players.

9. Why are aerospace and defense considered a long-term trend?

Global defense spending has reached its highest levels in decades. NATO countries are increasing their budgets, Europe is rearming, and demand for air-defense systems, drones and satellite technologies is growing. Defense contractors work under multi-year government contracts, while civil aviation is recovering with record order backlogs.

10. What are the risks of investing in ITA?

Companies' revenue largely depends on military budgets: cuts or contract delays may affect the sector. Political and geopolitical risks are possible – peace settlements or restrictions on arms exports. GE Aerospace and RTX account for about 37% of the portfolio, which creates high concentration. Civil aircraft manufacturers (Boeing) are exposed to production problems and demand cycles.

11. How does ITA differ from similar funds?

ITA is weighted by market capitalization, so it has a high share of the largest players (GE Aerospace, RTX, Boeing). A similar fund, PPA (Invesco), is more diversified and includes more companies with smaller weights. ITA is a more concentrated bet on the sector's leaders, while PPA offers more even exposure across the whole industry.

12. Where is ITA traded?

The fund trades on the U.S. Cboe BZX exchange. The fund's AUM is ~$14 billion – the largest U.S. aerospace and defense fund.

13. How does buying ITA through Regolith work?

Buying ITA through the Regolith platform takes place in a working mode and is not tied to a fixed date. Trades are formed 1–3 times a week. After an order is placed, the funds are reserved, and the purchase is made in the nearest available trading window at the actual transaction price.

14. What is the minimum investment period?

The minimum investment period is 1 week. After that, the investor can hold the position or exit the instrument with no fee from the platform.