Defense Spending Is Surging. MISL Bets on Tech. ITA Bets on Tradition.
Portfolio makeup and sector allocation set these aerospace ETFs apart. See how holdings and risk profiles could impact your long-term investment approach.
Defense Spending Is Surging. MISL Bets on Tech. ITA Bets on Tradition.
Overview
Investors 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.
Details
Beta 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.
Source
Originally published at www.fool.com.
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