ITA - ETF AI Analysis
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iShares U.S. Aerospace & Defense ETF (ITA)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Overall Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing that its portfolio has generally been working well for investors.
Leading Holdings with Strong Momentum
Key positions like GE Aerospace, Howmet Aerospace, and General Dynamics have shown strong or steady performance, helping support the fund’s returns.
Large Asset Base
The fund manages a sizable pool of assets, which often signals investor confidence and can help keep trading liquid and efficient.
Negative Factors
High Concentration in a Few Stocks
The top two holdings make up a large share of the fund, meaning problems at those companies could have an outsized impact on the ETF.
Sector Concentration Risk
Almost all of the ETF is invested in industrials, so it may be hit hard if the aerospace and defense industry faces a downturn.
Several Weak Top Holdings
Important holdings such as Boeing, Transdigm Group, Northrop Grumman, L3Harris Technologies, and Axon Enterprise have shown weaker recent performance, which can drag on the fund’s results.
ITA vs. SPDR S&P 500 ETF (SPY)
AUM12.27B
RegionNorth America
Expense Ratio0.37%
Beta1.11
IssueriShares
Inception DateMay 01, 2006
Dividend Yield0.27%
Asset ClassEquity
Index TrackedDJ US Select / Aerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume919,020
30 Day Avg. Volume698,965
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
286.53Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering50
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ITA Summary
The iShares U.S. Aerospace & Defense ETF (ITA) follows the Dow Jones U.S. Select Aerospace & Defense index, focusing on American companies that build aircraft, defense systems, and related technology. Its holdings include 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 and diversification within the industrial sector, especially if they believe defense spending and air travel technology will keep expanding. However, this ETF can rise or fall with changes in government defense budgets and overall stock market swings.
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 in the pilot’s seat; both have been rising over the past few months and are doing much of the heavy lifting for the fund. Boeing, by contrast, has been more of a wobbling wing, with recent performance still lagging despite a long-term backlog story. Defense stalwarts like Lockheed Martin and General Dynamics are steady engines, while Axon has been a standout riser. Overall, this is a U.S.-centric, industrial-heavy bet on defense and aerospace demand.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| GE Aerospace | 21.26% | $2.67B | $331.79B | 10.88% | 72 Outperform | |
| RTX | 15.99% | $2.01B | $254.20B | 15.95% | 74 Outperform | |
| Boeing | 7.72% | $969.41M | $155.54B | -10.48% | 54 Neutral | |
| Howmet Aerospace | 4.59% | $576.08M | $91.48B | 20.36% | 67 Neutral | |
| Transdigm Group | 4.55% | $571.59M | $61.10B | -13.85% | 69 Neutral | |
| Lockheed Martin | 4.54% | $570.95M | $120.87B | 6.59% | 70 Outperform | |
| Northrop Grumman | 4.54% | $570.76M | $72.31B | -14.13% | 76 Outperform | |
| General Dynamics | 4.38% | $550.21M | $90.99B | 1.93% | 80 Outperform | |
| Honeywell Aerospace | 3.79% | $475.67M | $50.22B | ― | ― | |
| L3Harris Technologies | 3.33% | $418.28M | $44.33B | -19.03% | 70 Neutral |
ITA Technical Analysis
Negative
―
Price Trends
232.13
Negative
232.17
Negative
230.08
Negative
Market Momentum
-6.18
Negative
26.37
Positive
16.82
Positive
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 217.07, equal to the 50-day MA of 232.13, and equal to the 200-day MA of 230.08, indicating a bearish trend. The MACD of -6.18 indicates Negative momentum. The RSI at 26.37 is Positive, neither overbought nor oversold. The STOCH value of 16.82 is Positive, 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
207.18
-1.55
-0.74%
VGT
Vanguard Information Technology ETF
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―
―
XLK
Technology Select Sector SPDR Fund
―
―
―
XLF
Financial Select Sector SPDR Fund
―
―
―
SOXX
iShares Semiconductor ETF
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―
―
XLI
Industrial Select Sector SPDR Fund
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―
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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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