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)
eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finder is not an affiliate and may be compensated if you access certain products or services offered by the BD.
Become a Finder member, open a SoFi Active Invest account and make a first deposit of $1,000 or more to receive a $150 gift card. Offer ends March 4, 2026.
T&Cs and limits apply.
0588148b-2286-4b8f-9672-9c8cdafc0370-Get up to $1,000 in stock
Get up to $1,000 in stock
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 open & fund a new Active Invest account.
Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longerqualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.
Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link See full terms and For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers
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.
5 best defense ETFs of 2024
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%
How to invest in defense ETFs
If you’re wondering how to get started with investing in defense stocks, follow these steps:
Based on our analysis, as of October 2023, the highest rated defense ETF is ARK Space Exploration & Innovation ETF (ARKX). This ETF ranked number 1 in our analysis based on YTD returns.
Yes. See our table above for our list of best defense ETFs.
Bottom line
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.
Matt Miczulski is an investments editor and market analyst at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on Yahoo Finance, CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University.
See full bio
Matt's expertise
Matt
has written
217
Finder guides across topics including:
Here’s what you need to know about how to buy and sell stocks online in this easy to follow, step-by-step guide.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
