Defense ETFs: SHLD Has Lower Fees, PPA Boasts More Holdings

Jake Lerch, The Motley Fool

Mon, June 1, 2026 astatine 9:54 AM CDT 4 min read

The Global X - Defense Tech ETF (NYSEMKT:SHLD) offers little costs, portion the Invesco Aerospace & Defense ETF (NYSEMKT:PPA) provides a deeper way grounds and higher caller full returns.

Both ETFs supply targeted vulnerability to the defence and aerospace industries, serving arsenic antiaircraft plays oregon thematic maturation vehicles. While the Global X money captures newer defence exertion trends, the Invesco money focuses connected established U.S. homeland information and aerospace operations. This examination weighs outgo against show history.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Global X money is much affordable, with an disbursal ratio of 0.5%, compared to PPA’s 0.58%. Additionally, the Global X money offers a somewhat higher dividend output of 0.5% versus 0.4% for its Invesco counterpart.

Performance & hazard examination

What's wrong

The Invesco Aerospace & Defense ETF (PPA) focuses connected the development, manufacturing, and enactment of defence and aerospace systems. Its portfolio holds 61 stocks, chiefly allocated to Industrials (90%) and Technology (10%). Its largest positions see Boeing Co. (NYSE:BA) astatine 8.38%, General Electric Co (NYSE:GE) astatine 8.20%, and RTX Corp (NYSE:RTX) astatine 6.98%. Launched successful 2005, the money paid $0.66 per stock implicit the trailing 12 months, reflecting a mature portfolio of American concern staples.

The Global X - Defense Tech ETF (SHLD) tracks the Global X Defense Tech Index with a much concentrated 48 holdings. It mirrors the concern tilt astatine 88% portion allocating 12% to exertion firms. Its apical holdings see Lockheed Martin Corp (NYSE:LMT) astatine 8.70%, Rtx Corporation astatine 7.87%, and General Dynamics Corp (NYSE:GD) astatine 7.83%. Launched successful 2023, the money has a trailing-12-month dividend of $0.36 per share, representing a newer introduction focused connected modern warfare technology.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.