Deep Dive
Defense & Aerospace ETFs nearly doubled in three years. September's losses came from different names
iShares Defense Industrials Act
$30.60−0.19 (−0.60%)
- 0.55%
- $3.7B
- −1.7%
- 1M sh
- $30.79
- low $28.54high $36.88
The ETF.net IDEF Grade
B
Score 58 out of 100
- 7 of 26
Score 58 of 100 falls in the B band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.C44 out of 100Rank 15 of 26Mission
Whether the fund did what it promised, tested against its stated mandate.Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.B63 out of 100Rank 7 of 26Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.B60 out of 100Rank 8 of 26Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A84 out of 100Rank 4 of 26Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A82 out of 100Rank 5 of 26
Our read on IDEF
BBlackRock's active answer to index-tracking defense funds: a stock picker's portfolio of global aerospace, cyber and defense-infrastructure names, with no US-only benchmark holding the leash.
The fund seeks to invest at least 80% of its assets in equity securities of U.S. and non-U.S. defense and related industrial companies.
Why people hold it
- Active and global by design: at least 80% of assets go to US and non-US defense and related industrial companies, so European rearmament names are in bounds.ishares.com
- Spreads across about 120 holdings, reaching past the classic primes into aerospace, cybersecurity and infrastructure suppliers.ishares.com
- Crossed a billion dollars in assets and trades actively, an unusually quick start for a fund launched in 2025.
- Holds its own in a crowded defense field, landing in the upper half of its peer group on our review.
Worth knowing
- At 0.55%, it costs more than index rivals like ITA (0.37%) and XAR (0.35%). The stock picking is what the extra buys.
- Launched in 2025 with no declared index, so there is a short record and no benchmark to measure the manager's picks against.
- Distributions come once or twice a year rather than quarterly.
IDEF Holdings
- Stocks
- 166
- 31%
- RTX
Geography
- United States64.25%
- Korea (the Republic of)7.67%
- Japan5.14%
- United Kingdom4.72%
- France3.57%
- Germany2.19%
- Netherlands1.98%
- Sweden1.72%
- 8.76%
Developed 71% · Emerging 29%
IDEF Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.Not enough history yet.Not enough history yet.
IDEF$9,826
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | IDEF |
|---|---|
| Year to date | +0.1% |
| 1 month | −2.7% |
| 3 months | −3.7% |
| 1 year | −1.7% |
| 3 years | — |
| 5 years | — |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | IDEF |
|---|---|---|
| 2026 YTD | +0.1% | |
| 2025 | +23.1% |
IDEF in the news
First-Year Review
JEDI crossed $200 million after taking a Shield AI stake
IDEF Dividends
- $0.05 per share
- Twice a year
Distribution data unavailable.
Distribution history
IDEF Risk
- 21.1%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.58
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −16.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.82
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
IDEF Cost
0.55%
IDEF0.55%
- The middle half of Defense & Aerospace funds
- Median 0.50%
13 of the 25 Defense & Aerospace funds charge less.
Other funds in Defense & Aerospace
- BFLDZTrueShares Patriot Defense ETFExpense ratio 0.40%1 year return −6.3%
- BPPAInvesco Aerospace & Defense ETFExpense ratio 0.58%1 year return +1.5%
- BWDGFWisdomTree Global Defense FundExpense ratio 0.45%1 year return −6.9%
- CSHLDGlobal X - Defense Tech ETFExpense ratio 0.50%1 year return −11.5%
- CMISLFirst Trust Indxx Aerospace & Defense ETFExpense ratio 0.60%1 year return −0.2%