Equity: U.S. Aerospace & Defense
With 5 ETFs and over $4.42B 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 S&P Kensho Future Security ETF (FITE), with a total return of -3.28%. Meanwhile, the most popular ETF is the iShares U.S. Aerospace & Defense ETF (ITA) with $2.65BB 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. ITA tracks a market-cap-weighted index of US manufacturers, assemblers and distributors of airplane and defense equipment. ITA has an expense ratio of 0.42% 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 89 out of 100, with the SPDR S&P Aerospace & Defense ETF(XAR) obtaining the highest rating of 92 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.45% 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 -0.26%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Aerospace & Defense segment is 81 out of 100, with the Invesco Aerospace & Defense ETF(PPA) obtaining the highest rating of 97 out of 100.
The iShares U.S. Aerospace & Defense ETF (ITA) is the undisputed segment leader when it comes to liquidity. The fund trades 26.67M in daily average volume. Investors should also find ample liquidity in the SPDR S&P Aerospace & Defense ETF (XAR), with $11.04M in daily dollar volume.
Use limit orders to trade funds such as the SPDR S&P Kensho Future Security ETF(FITE), due to their double-digit market spreads.
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, FITE follows a Equal strategy and obtains a low Fit score compared with our neutral benchmark.