The Boeing CompanyBoeing's production ramp and record engine-services demand are cited as commercial aerospace tailwinds.
The iShares U.S. Aerospace & Defense ETF has climbed 13.74% year to date and 32.48% over the trailing year, driven by its top three holdings GE Aerospace, RTX, and Boeing, which together account for roughly 44.5% of the portfolio. The fund holds no Tesla shares because its index is limited to aerospace and defense classifications, while Tesla is categorized under consumer discretionary and automotive. That exclusion has shielded ITA from Tesla's 12.51% year-to-date decline and its 421 price-to-earnings ratio, which dragged broad market ETFs. The fund's gains have been supported by expanding defense budgets, including a $391.1 billion Air Force request and a $21.4 billion F-35 program request for fiscal 2027, as well as commercial aerospace tailwinds from Boeing's production ramp and record engine-services demand. However, the heavy concentration in three names poses reversal risk if Boeing faces a production stumble or Pentagon budget fights emerge.
The Boeing CompanyBoeing's production ramp and record engine-services demand are cited as commercial aerospace tailwinds.
RTX CorporationRTX is a top holding benefiting from defense budget increases and commercial aerospace demand.
GE AerospaceGE Aerospace is a top holding benefiting from defense budget increases and commercial aerospace demand.
Tesla Inc