## [# Defense ETFs Down as Lockheed Tumbles, Northrop Soars](/sections/news/defense-etfs-down-lockheed-tumbles-northrop-soars)
# Defense ETFs Down as Lockheed Tumbles, Northrop Soars
\- Lockheed Martin Corp (LMT) dropped 8% Tuesday, while Northrop Grumman Corp (NOC) surged by the same amount.
\- The moves suggest that investors may be reassessing valuations and locking in profits.
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[By Sumit Roy ](/authors/sumit-roy)
Jul 22, 2025
Edited by: David Tony
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Two of the biggest defense contractors in the United States moved in opposite directions on Tuesday after reporting earnings, sending ripples through [aerospace and defense ETFs](https://www.etf.com/topics/aerospace-defense).
Shares of [Lockheed Martin Corp. (LMT)](/stock/LMT) dropped 8%, while shares of [Northrop Grumman Corp. (NOC)](/stock/NOC) surged by the same amount. Both companies are major holdings in the [**iShares U.S. Aerospace & Defense ETF (ITA)**](/ITA), which has $8.8 billion in assets under management. NOC is the fund’s eighth-largest holding at 4.4%, while LMT is the ninth-largest at 4.2%.
“LMT’s 2Q25 results were worse than Street expectations as program charges not only impacted Aeronautics but also the RMS segment,” analysts at Truist Securities said. Meanwhile, “NOC delivered with stronger-than-expected results while also slightly raising its full-year EPS and FCF guidance,” RBC Capital Markets analysts noted.
## ITA Falls on Possible Profit-Taking
While the opposing moves mostly canceled each other out, ITA still fell 1.2% intraday—likely due to broader market weakness and possible profit-taking after a strong year for defense stocks. Even after Tuesday’s drop, ITA is up 33% year to date, far outpacing the 7.8% gain for the S&P 500.
Another fund impacted by the moves was the [**Global X Defense Tech ETF (SHLD)**](/SHLD), which fell 1.3% on the day. SHLD has a larger position in LMT (7.4%) and a similar weight in NOC (4.4%). The fund has had a standout year, gaining 62.7% in 2025, thanks to its focus on next-generation defense technologies and a global approach that goes beyond traditional U.S.-centric aerospace names.
### ITA & SHLD Holdings
**ITA Holdings**
**Weight**
**SHLD Holdings**
**Weight**
GE Aerospace
20.4%
Palantir Technologies Inc.
8.5%
RTX Corp.
14.8%
Rheinmetall AG
8.2%
Boeing Co.
9.3%
RTX Corp.
7.8%
TransDigm Group Inc.
4.6%
BAE Systems plc
7.6%
Howmet Aerospace Inc.
4.6%
Lockheed Martin Corp.
7.4%
General Dynamics Corp.
4.5%
General Dynamics Corp.
4.6%
L3Harris Technologies Inc.
4.4%
L3Harris Technologies Inc.
4.5%
Northrop Grumman Corp.
4.4%
Northrop Grumman Corp.
4.4%
Lockheed Martin Corp.
4.2%
Leonardo SpA
4.4%
Axon Enterprise Inc.
4%
Thales SA
4.4%
*Source:* [*etf.com & FactSet Data*](https://www.etf.com/tools/etf-comparison/SHLD-vs-ITA)
Meanwhile, the [**Select STOXX Europe Aerospace & Defense ETF (EUAD)**](/EUAD), the second-best-performing non-leveraged ETF of the year with a 76.3% return, also declined 1.4% on Tuesday. Though EUAD does not hold LMT or NOC, its pullback reflected broader sentiment across the defense sector.
With such strong year-to-date gains, Tuesday’s moves suggest that investors may be reassessing valuations and locking in profits as earnings season ramps up across the defense industry.
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
Related Topics [Aerospace & Defense](http://www.etf.com/topics/aerospace-defense)
[iShares](http://www.etf.com/topics/ishares)
[Global X](http://www.etf.com/topics/global-x)