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BATS:ITA
IShares Aero & Def. ETF (ITA)
Financials 
Technical Analysis 
Aug 21, 2026, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
The iShares Aerospace & Defense ETF (ITA-N) is viewed favorably by experts, primarily for its position within the thriving defense sector. Analysts agree that this ETF provides a strategic way to mitigate risks associated with individual contracts while benefiting from the industry’s overall growth momentum, which is evident in its trajectory of higher highs and higher lows. There's a consensus that defense spending is on the rise due to increased global tensions, with major contributors from countries such as the US, Canada, Germany, and others. The ETF's current valuation at around 27x forward PE is seen as relatively reasonable, but some experts caution that it has experienced a significant short-term spike, suggesting careful allocation. The impact of political changes, particularly related to U.S. elections, on defense spending is a factor that adds an element of uncertainty to future performance.
Seasonally you normally see defence stocks doing very well from about October right through until about the end of the year, and then they tend to take a bit of a break from January through to March. They then take another move to the upside until May. Technically, it is currently running into some overhead resistance with a small downward trend.
This has always been a thematic type of investment. There are times you want to own, and there are times when you don’t. The 5-year chart shows it is really on the highs and breaking out a little. He doesn’t like breakout kinds of stories because they fail more often than they don’t. Also, it depends on who wins the election. If Trump wins, this might be a very strong sector for a little while.
The period of seasonal strength for this sector is from mid-October right through until early January, and also from March until May of each year. Today there were a number of stocks within the sector that broke to new highs. This is happening because there are terrorist activities going on, which means there is going to be more military equipment that is purchased by all the major countries globally, who want to fight against ISIS.
Mike Lyons CA, CFAMike Lyons CA, CFA
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Aerospace defense is doing well and terrorism is not going away. That is going to keep these stocks doing very well. Wait for a pull back. He does not buy a stock on a day it is up.