Equity: U.S. Aerospace & Defense

XKFS Top Performer Intra-day
Price $35.62
Today’s Change -0.50%
9:34am 09/24/2018
XAR Bottom Performer Intra-day
Price $97.53
Today’s Change -1.20%
11:02am 09/24/2018

ETF.com Insight

With 4 ETFs and over $8.76B in combined AUM, the Equity: U.S. Aerospace & Defense segment provides exposure to the U.S. space with a focus on Industrials securities.

Year-to-date, the best-performing ETF in the segment is the SPDR Kensho Future Security ETF (XKFS), with a total return of 19.70%. Meanwhile, the most popular ETF is the iShares U.S. Aerospace & Defense ETF (ITA) with $6.10BB in assets under management.

Investors should take a look at the iShares U.S. Aerospace & Defense ETF (ITA). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares Dow Jones U.S. Aerospace & Defense ETF tracks a market-cap-weighted index of US manufacturers, assemblers and distributors of airplane and defense equipment. ITA has an expense ratio of 0.43% and tracks the DJ US Select / Aerospace & Defense.

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Aerospace & Defense segment is 91 out of 100, with the SPDR S&P Aerospace & Defense ETF(XAR) obtaining the highest rating of 94 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.46% per year, with the SPDR S&P Aerospace & Defense ETF (XAR) having the lowest expense ratio, charging investors 0.35% yearly.

Investors should look for funds with tight tracking, such as the SPDR S&P Aerospace & Defense ETF (XAR), with a 12-month median tracking difference of -0.51%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Aerospace & Defense segment is 86 out of 100, with the Invesco Aerospace & Defense ETF(PPA) obtaining the highest rating of 96 out of 100.

The iShares U.S. Aerospace & Defense ETF (ITA) is the undisputed segment leader when it comes to liquidity. The fund trades 44.87M in daily average volume. Investors should also find ample liquidity in the SPDR S&P Aerospace & Defense ETF (XAR), with $8.66M in daily dollar volume.

Use limit orders to trade funds such as the SPDR Kensho Future Security ETF(XKFS), due to their double-digit market spreads.

ETF.com/ Block Liquidity

PPA
5
4
3
2
1
XAR
5
4
3
2
1
ITA
5
4
3
2
1
XKFS
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Aerospace & Defense has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to ITA. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, XKFS follows a Equal strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology