Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSara Appino, The Motley FoolSun, June 7, 2026 at 2:39 PM GMT+2 4 min readInvestors choosing between First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) and iShares U.S. Aerospace & Defense ETF (NYSEMKT:ITA) may find that the iShares fund offers lower costs and significantly higher liquidity, while the First Trust fund provides a more growth-oriented mix through its inclusion of technology companies.Both MISL and ITA target the domestic aerospace and defense industry, a sector often driven by government spending and commercial aviation cycles. While they share a primary focus, their underlying indexes lead to distinct portfolios, varying cost structures, and different risk profiles for long-term investors looking to capitalize on defense budgets and global travel demand.Snapshot (cost & size)MetricMISLITAIssuerFirst TrustiSharesExpense ratio0.65%0.38%1-yr return (as of June 3, 2026)32.40%26.10%Dividend yield0.30%0.50%Beta0.660.74AUM~$804.5 million~$13.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.The iShares fund is noticeably more affordable for long-term holders, charging an expense ratio of 0.38% compared to the 0.60% fee for the First Trust fund. Additionally, ITA currently provides a slightly higher payout for income-seeking investors, with a trailing-12-month distribution yield that sits 0.13 percentage points above the yield offered by MISL.Performance & risk comparisonMetricMISLITAMax drawdown (3 yr)(17.90%)(15.80%)Growth of $1,000 over 3 years (total return)$2,114$2,043What's insideThe iShares U.S. Aerospace & Defense ETF, launched in 2006, is purely focused on the industrial sector, which accounts for 100% of its weight. It holds 44 stocks and tracks a market-cap weighted index of U.S. equities, resulting in heavy concentration in its top positions. Its largest holdings include GE Aerospace (NYSE:GE) at 20.49%, RTX (NYSE:RTX) at 14.38%, and The Boeing Company (NYSE:BA) at 9.16%. The iShares fund has a trailing-12-month dividend of $1.07 per share.In contrast, the First Trust Indxx Aerospace & Defense ETF, launched in 2022, offers a broader sector mix by allocating 83% to industrials and 17% to technology companies. It manages 49 holdings and tracks the Indxx US Aerospace & Defense Index. Its top holdings include Palantir Technologies (NASDAQ:PLTR) at 9.24%, GE Aerospace at 8.01%, and The Boeing Company at 7.78%. Because it includes software firms like Palantir Technologies, it carries a different risk profile than its older peer and paid $0.16 per share over the trailing 12 months.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info