Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

The best defense ETF to buy now

Here are the 5 best defense ETFs for investors seeking steady growth and rising dividends.

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)

Our top picks for where to buy defense ETFs

Top pick for advanced traders

Go to site
  • Trade options, futures, options on futures, stocks, ETFs
  • $0 commission to close options
  • Pro-grade platform and risk analysis tools

Our pick for transfer bonus

Go to site
  • Trade stocks, options, ETFs, mutual funds, alternative asset funds
  • $0 commission on stocks, ETFs and options, with no options contract fees
  • Complimentary access to a financial planner and automated investing

Best for mobile experience

Go to site
  • Earn 4.5% interest on uninvested cash with Gold
  • Get up to $50,000 in instant deposits with Gold
  • Easy, user-friendly trading
D

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.

LogoETF name and tickerETF descriptionExpense RatioYTD return
SPDR S&P ETF logoSPDR 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 ETF logoSPDR 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 logoInvesco 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 logoARK 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 logoiShares 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:

  1. Choose a platform. Choose from our Top Picks above or jump straight to the best ETF brokers of 2024.
  2. Open your account. Provide your personal information and sign up.
  3. Confirm your payment details. Fund your account with a bank transfer, debit card or credit card.
  4. Research ETFs. The platform should provide the latest information available.
  5. Buy your ETFs. Place a market order or limit order with your preferred number of shares. It’s that simple.

Frequently asked questions about 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.

Holly Jennings's headshot
To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
Matt Miczulski's headshot
Written by

Editor, Investments

Matt Miczulski is an investments editor 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 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 213 Finder guides across topics including:
  • Trading and investing
  • Broker and trading platform reviews
  • Money management

More guides on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site