(ITA) iShares U.S. Aerospace - Ratings and Ratios

The iShares U.S. Aerospace & Defense ETF (ITA) is designed to track the performance of the aerospace and defense sector within the U.S. equity market, as defined by the S&P Dow Jones Indices (SPDJI). This ETF provides exposure to a concentrated portfolio of companies operating in the defense and aerospace industries, including major defense contractors, aerospace manufacturers, and related technology firms.

ITA typically invests at least 80% of its assets in securities that are part of its underlying index or in investments that closely replicate the economic characteristics of those securities. This approach ensures that the fund stays aligned with the sectors performance. The remaining 20% of its assets may be allocated to certain derivatives, such as futures, options, and swap contracts, as well as cash and cash equivalents, to manage risk or enhance returns.

It’s important to note that ITA is classified as a non-diversified fund, meaning it can hold a higher concentration of its assets in a smaller number of securities compared to diversified funds. This concentration can lead to higher volatility but also allows for more targeted exposure to the aerospace and defense sector. The fund is domiciled in the United States and is listed on the BATS exchange under the ticker symbol ITA.

With an AUM of approximately $6.6 billion, ITA is one of the larger ETFs in the industrials category. It provides investors with a liquid and cost-effective way to gain exposure to the U.S. defense and aerospace industries, which are often tied to government defense spending, geopolitical developments, and advancements in aerospace technology. This makes ITA a relevant investment vehicle for those looking to capitalize on the growth and stability of this sector.