
- Trade stocks, options, ETFs, mutual funds, alternative asset funds
- $0 commission on stocks, ETFs and options with no options contract fees
- Get up to $1,000 in stock when you fund a new account within 30 days
- Access to a financial planner
Defense exchange-traded funds (ETFs) are index funds that hold stocks of companies within the aerospace and defense sector. ETFs can help supplement your portfolio by giving you exposure to stocks known for their growth, stability and dividends. Because of the growing demand for aviation, increases in defense spending and developing interest in the space industry, we’ve curated a list of the best defense ETFs to buy now.(1)
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
The list below comprise the top 6 defense ETFs by year-to-date performance. Included is each ETF’s expense ratio, 1-year return and 5-year return. To settle on these picks, we chose only equity ETFs in the Aerospace & Defense sector with an expense ratio under 1%. No leveraged ETFs and no inverse ETFs were included in this list.
Logo | ETF name and ticker | ETF description | Expense Ratio | YTD return |
---|---|---|---|---|
![]() | SPDR S&P Kensho Future Security ETF (FITE) | FITE ETF tracks the performance of the S&P Kensho Future Security Index, focusing on security innovations across cyber security, border security and military applications. | 0.45% | 6.82% |
![]() | SPDR S&P Aerospace & Defense ETF (XAR) | XAR ETF provides investors with diversified exposure to the aerospace and defense industry by tracking the S&P Aerospace & Defense Select Industry Index. | 0.35% | 4.95% |
![]() | Invesco Aerospace & Defense ETF (PPA) | PPA ETF by Invesco offers investors exposure to the aerospace and defense industry, comprising major defense companies. | 0.58% | 4.34% |
![]() | ARK Space Exploration & Innovation ETF (ARKX) | ARKX is an ETF by ARK Invest, focusing on space exploration and innovation companies. | 0.70% | 4.04% |
![]() | iShares U.S. Aerospace & Defense ETF (ITA) | ITA ETF tracks the Dow Jones U.S. Select Aerospace & Defense Index, offering broad exposure to U.S. manufacturers of commercial and military aircrafts and other defense equipment. | 0.40% | -1.13% |
If you’re wondering how to get started with investing in defense stocks, follow these steps:
Defense ETFs offer a convenient way to gain exposure to stocks of companies in the aerospace and defense sector without having to buy each stock individually. With growing demand across the aviation and space industry and ever-increasing defense spending, investors may want to consider if defense ETFs should have a place in their portfolio.
Some of the best paper trading apps to practice stock trading with fake money include Interactive Brokers, eToro, Charles Schwab and more.
These are the stocks to buy when you don’t have much to spend.
These are the best trading platforms for beginners, according to Finder’s comprehensive analysis.
Want to buy and sell international stocks? Here are the top brokers to help you trade global markets.
These are the best discount brokers of 2025 according to Finder’s comprehensive review.
Compare the 5 best stock picking services, according to Finder’s analysis, and learn how to choose the best option for your needs.
Check out our picks of the best trading apps for beginners, options traders, hands-off investors and more.
We’ve rounded up stats on some of the most popular graphene stocks, along with information on how they compare and how to invest.
See our picks of the best brokerage accounts, including Fidelity, SoFi, Charles Schwab, Public, Robinhood and E*TRADE .
Check out the best-performing ETFs so far in 2025.