BlackRock Launches New Defense ETF Amid Global Spending Boom
- BlackRock has rolled out an actively managed defense ETF.
- IDEF is focused on companies tied to global security priorities.
- Top holdings include General Electric, RTX, Palantir and Boeing.
BlackRock Inc. (BLK) has launched a new defense ETF—the iShares Defense Industrials Active ETF (IDEF)—aimed at capturing opportunities tied to rising global security and defense spending, according to a Wednesday press release from the company.
IDEF began trading Monday and offers actively managed exposure to companies involved in defense, aerospace and related industrial services. The launch follows a surge in worldwide defense investment, which reached a record $2.7 trillion in 2024, up 9.4% year over year, according to BlackRock.
The fund is the latest addition to BlackRock’s $45 billion active ETF lineup and arrives as investors look for ways to position around shifting geopolitical strategies and national security concerns.
The fund, listed on Nasdaq, carries a 0.55% management fee, according to its prospectus. It is managed by Simon Wan, Yasmin Meissner and Lucy Parker of BlackRock’s Multi-Asset Strategies and Solutions Group. According to BlackRock, the team combines macroeconomic research with data like government contracts and company filings to identify stocks tied to the global defense theme.
The strategy invests at least 80% of assets in defense and related industrial companies, which includes aerospace manufacturers, military contractors and engineering firms, according to its prospectus. The fund may also hold companies involved in cybersecurity, government technology and infrastructure security.
IDEF: Inside the Defense ETF’s Holdings
According to BlackRock, top holdings in IDEF include GE Aerospace (GE), RTX Corp. (RTX), Palantir Technologies, Inc. (PLTR), Boeing Co. (BA) and Airbus SE. Other names in the portfolio include Honeywell International Inc. (HON), Lockheed Martin Corp. (LMT) and Safran SA.
The fund also invests globally, with exposure to companies based in France, Japan, Germany and the United Kingdom. In addition to traditional defense firms, IDEF includes tech-oriented names such as Fortinet, Inc. (FTNT) and Axon Enterprise, Inc. (AXON), which develop software and tools used by the military and law enforcement.
BlackRock said it uses large language models to scan public data for companies with ties to defense activities, although this analysis does not drive the fund’s 80% exposure rule. The fund may also invest in IPOs and foreign securities without limit.
