BATS:ITA
IShares Aero & Def. ETF (ITA)
Financials 
Technical Analysis 
Jul 11, 2026, 12:00 amThis summary was created by AI, based on 5 opinions in the last 12 months.
The iShares Aero & Defense ETF (ITA-N) is highly favored among experts, particularly for its strong positioning within the U.S. defense sector, which currently shows robust performance indicators like higher highs and higher lows on technical charts. Experts appreciate the ETF's risk-spreading qualities by diversifying contracts, making it an attractive 'easy win' investment. There’s a consensus that geopolitical tensions and increased global military spending, notably from the U.S., Canada, Germany, and other nations, further enhance its growth prospects. However, some caution is advised due to concerns about valuation, as the ETF trades at approximately 27x forward PE, and the potential impacts of political changes on defense budgets in upcoming elections. Overall, while there are reservations about overvaluation, the upward momentum and favorable demand in the aerospace and defense sectors present a compelling case for investors.
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.