ARMY vs ITA

ARMYDTema International Defense Innovation ETF

ITAAiShares U.S. Aerospace & Defense ETF

In short

ARMY Most defense ETFs are a bet on the Pentagon's suppliers. ARMY casts a wider net: about 40 aerospace and defense names across domestic and foreign markets with an innovation bent, for 0.68% net of a waiver through June 28, 2027.

ITA The 2006 original in aerospace and defense, and still the anchor fund of the category. It follows a market-cap-weighted index of U.S. aircraft, parts and weapons makers, so the big primes carry most of the weight.

Stated mandate

ARMY The fund pursues its investment objective by concentrating at least 80% of net assets in domestic and foreign publicly listed companies in the Aerospace and Defense sector, including defense-supporting businesses with an innovation focus.

ITA The fund is designed to follow an index of U.S. equity companies focused on aerospace and defense.

Why people hold it

• ARMY The mandate parks at least 80% of net assets in aerospace and defense, domestic and foreign listings alike, so non-US contractors sit alongside the familiar American primes.
• About 40 holdings chosen with an innovation focus rather than a roster of the biggest contractors, so each name carries real weight.
• A fee waiver runs through June 28, 2027, trimming the 0.75% gross expense ratio to 0.68% net.

• ITA Charges 0.37% a year, below the typical defense-fund fee and a whisker off the cheapest large rival, XAR at 0.35%.
• Trading since 2006 and now a multi-billion-dollar, actively traded fund: the long-standing incumbent in U.S. aerospace and defense.
• The index weights by market cap but caps any single company's weight, so the biggest primes lead without swallowing the whole portfolio.spglobal.com
• One of the strongest builds in a crowded defense peer group, with a plain-vanilla index mandate and quarterly payouts.

Worth knowing

• ARMY That 0.68% net sits above the typical fee in defense ETFs, and US-focused trackers run cheaper: XAR at 0.35%, ITA at 0.37%, neither leaning on a waiver.
• Launched in September 2025, so there is little history to judge and trading has been light. Spreads deserve a look, and limit orders are the norm for funds this young.
• About 40 stocks, overwhelmingly industrials, many listed abroad: single-name stumbles, sector swings, and currency moves all land in returns.

• ITA About 50 stocks, cap-weighted: a few primes drive most of the ride. XAR's modified equal weight spreads exposure further down the size ladder.ssga.com
• One U.S. industry, running on two engines: government procurement and commercial aircraft demand. Narrower than a broad-market fund by design.ishares.com
• Holds a representative sample of the index rather than every constituent, which can leave small gaps versus the benchmark.sec.gov

Full ARMY profile⁠

Full ITA profile⁠