Top 6 defence ETFs to watch in 2026
Government budgets fund the defence industry, so procurement decisions set what the sector earns. That holds across funds tracking U.S. contractors, European manufacturers and space exploration companies.
Defence ETFs hold shares in companies that build aerospace and military hardware – from aircraft and weapons systems to satellites. Several funds here track a U.S. aerospace and defence index, while Select STOXX Europe Aerospace & Defense ETF ($EUAD) focuses on European companies and ARK Space Exploration & Innovation ETF ($ARKX) takes an actively managed approach targeting space and defence innovation. State Street SPDR S&P Kensho Final Frontiers ETF ($ROKT) reaches beyond defence, tracking companies in deep space and deep sea exploration.
How we built this list: We selected these funds based on their investment category and relevance to the theme, then ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.
ETF Name | Ticker | Share Price | AUM | Expense Ratio | In Watchlists |
|---|---|---|---|---|---|
iShares US Aerospace & Defense ETF | $204.48 | $11.92B | 0.37% | 2421 | |
Invesco Aerospace & Defense ETF | $154.53 | $7.38B | 0.58% | 784 | |
State Street SPDR S&P Aerospace & Defense ETF | $218.31 | $4.98B | 0.35% | 1071 | |
Select STOXX Europe Aerospace & Defense ETF | $39.92 | $947.1M | 0.45% | 257 | |
ARK Space Exploration & Innovation ETF | $29.63 | $717.9M | 0.75% | 3328 | |
State Street SPDR S&P Kensho Final Frontiers ETF | $98.87 | $152.8M | 0.45% | 195 |
Past performance is not a reliable indicator of future performance.
Source: Stake market data. Figures in US$. Data updated as of 22 October 2026.
✅ Learn more: Top 10 defence stocks to watch in 2026→
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1. iShares US Aerospace & Defense ETF ($ITA)
Price: US$204.48 · Daily: -0.6% · AUM: US$11.92B · MER: 0.37%
iShares US Aerospace & Defense ETF ($ITA) aims to track the Dow Jones U.S. Select Aerospace & Defense Index, which covers U.S.-listed companies in the aerospace and defence sector. The fund is designed to hold at least 90% of its assets in securities from that index, along with depositary receipts representing those same securities.
The index focuses entirely on U.S. equities, so the portfolio concentrates on American aerospace and defence companies rather than spreading across multiple regions. That gives the fund a tight geographic scope – the performance it delivers is tied to how U.S. names in the sector move.
2. Invesco Aerospace & Defense ETF ($PPA)
Price: US$154.53 · Daily: -0.8% · AUM: US$7.38B · MER: 0.58%
Built around the SPADE Defense Index, Invesco Aerospace & Defense ETF ($PPA) aims to track a benchmark covering companies in the aerospace and defence sector. The fund is designed to hold at least 90% of its assets in the common stocks that make up that index, weighted in proportion to each company's weighting within it.
That proportional construction means $PPA is intended to mirror the index composition as closely as possible. Portfolio managers don't select individual holdings – the index determines what the fund owns and in what size. When the index is reconstituted, the fund is designed to adjust accordingly.
3. State Street SPDR S&P Aerospace & Defense ETF ($XAR)
Price: US$218.31 · Daily: -1.9% · AUM: US$4.98B · MER: 0.35%
The State Street SPDR S&P Aerospace & Defense ETF ($XAR) aims to replicate the S&P Aerospace & Defense Select Industry Index, which draws from the aerospace and defence segment of the S&P Total Market Index. $XAR's portfolio holds U.S. companies whose core activities sit within the aerospace and defence industry. Because the index is derived from a specific industry segment rather than a broader market benchmark, the fund keeps its exposure tightly scoped to that corner of U.S. equities.
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4. Select STOXX Europe Aerospace & Defense ETF ($EUAD)
Price: US$39.92 · Daily: -1.8% · AUM: US$947.1M · MER: 0.45%
Select STOXX Europe Aerospace & Defense ETF ($EUAD) is designed to track the STOXX Europe Total Market Aerospace & Defense Index, which covers companies based in Europe whose primary business is aerospace and defence – think manufacturing, servicing and distributing civil and military equipment, systems and technology.
The index draws exclusively from European-domiciled companies, so the portfolio reflects the aerospace and defence industry as it exists across that region rather than in North America. That geographic focus means the fund's composition looks quite different from funds built around U.S. defence contractors.
5. ARK Space Exploration & Innovation ETF ($ARKX)
Price: US$29.63 · Daily: -3.0% · AUM: US$717.9M · MER: 0.75%
Space and defence innovation is the investment theme behind ARK Space Exploration & Innovation ETF ($ARKX). The fund is actively managed, meaning its portfolio reflects the manager's judgement rather than a fixed index. Under normal circumstances, $ARKX aims to invest at least 80% of its assets in equity securities of companies tied to that theme, drawing from both domestic and foreign markets.
The fund's stated objective is long-term capital growth. Because it isn't anchored to a benchmark, the portfolio can shift as the manager's view of the space and defence landscape evolves – which also means the composition can look quite different from one period to the next.
6. State Street SPDR S&P Kensho Final Frontiers ETF ($ROKT)
Price: US$98.87 · Daily: -3.0% · AUM: US$152.8M · MER: 0.45%
State Street SPDR S&P Kensho Final Frontiers ETF ($ROKT) is designed to track the S&P Kensho Final Frontiers Index, a benchmark built around companies driving innovation in deep space and deep sea exploration. The index focuses on two environments where the technical demands of operating – whether beyond Earth's atmosphere or at extreme ocean depths – define which companies qualify for inclusion. At least 80% of the fund's assets are held in the securities that make up the index.
Because the benchmark is structured around exploration-led innovation themes rather than a fixed sector classification, $ROKT's composition may shift as companies enter or leave the index based on their relevance to those frontier activities. That thematic approach means the portfolio can evolve alongside the businesses most actively involved in pushing the limits of space and sea.
➡️ Top 8 ARK ETFs to watch in 2026→
Common questions
How do I invest in defence ETFs in Australia?
All six funds in this article trade on U.S. exchanges, so you'd access them through a brokerage platform that supports U.S. market trading. You buy and sell them by searching the ticker during U.S. market hours, the same way you would any U.S.-listed stock or ETF. There are no ASX-listed defence ETFs in this list.
What are the key risks of defence ETFs?
Some of the key risks include geopolitical and policy shifts – government defence budgets can change with administrations, treaties or strategic priorities, and that flows through to the revenues of the companies these funds hold. Concentration is another: a fund focused tightly on one sector or sub-theme is more exposed to disruptions in that corner of the market than a broad market index would be. For Australian investors, movements between the Australian dollar and the currencies of a fund's underlying holdings affect what any proceeds are worth in AUD. Actively managed funds carry the additional risk that the manager's judgement may diverge from what the broader market delivers.
How do index-tracking and actively managed defence ETFs differ?
The index-tracking funds in this list aim to replicate a fixed benchmark – the portfolio is determined by the index and adjusts when that index is reconstituted. $ARKX works differently: it's actively managed, meaning the portfolio reflects the investment manager's ongoing view of which companies fit the space and defence innovation theme. Because there's no fixed benchmark anchoring it, the holdings can shift more frequently and may look quite different from the index-based funds in this list.
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Disclaimer
Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.
This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.
Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.
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