ITA(ITA)
AI Look-Through Summary
AI GeneratedThe iShares U.S. Aerospace & Defense ETF exhibits a highly concentrated portfolio structure dominated by the Industrials sector, which accounts for nearly three-quarters of total assets under management. This extreme skew is primarily driven by top-tier holdings in major defense contractors and aerospace manufacturers, with General Electric alone representing almost one-fifth of the fund's value. The presence of multiple other heavyweight industrials such as RTX, Boeing, Lockheed Martin, and Northrop Grumman further reinforces this thematic exposure, creating a portfolio where individual stock performance can disproportionately influence overall returns due to the limited diversification beyond these specific names.
Geographically, while explicit country weights are not provided in the current data snapshot, the composition of top holdings suggests a heavy tilt toward U.S.-based entities given that all listed constituents are American companies with significant domestic revenue streams and operations. The fund's strategy appears designed to capture exposure to government contracting cycles and defense spending trends rather than broad industrial diversification or international market access. With nearly 75% of the portfolio concentrated in just ten positions, the ETF presents a distinct risk profile where correlation among holdings may be high during periods of sector-wide volatility, limiting the mitigating effect typically associated with broader index tracking.
Quantitatively, the sheer size of AUM at $13.5 billion indicates substantial liquidity and investor interest in this specific niche strategy, yet it does not necessarily imply low turnover or broad market representation within that segment. The concentration metric is exceptionally high relative to standard diversified equity vehicles, meaning price movements in a single top holding could materially alter the fund's daily performance trajectory. Investors seeking exposure to the aerospace and defense complex will find significant alignment with their objectives here, but those prioritizing sector neutrality or lower idiosyncratic risk may observe that this vehicle functions more as a leveraged bet on specific industrial leaders than a balanced representation of the broader U.S. economy.
Generated by Qwen-32B from constituent-level data. Not investment advice. Updated: 2026-05-19 15:24:47.999468+00
🔍 Theme Alignment Audit
AI GeneratedPurity: 95/100The investment profile of the ITA ETF demonstrates a highly congruent alignment with its implied industrial theme, as evidenced by the exclusive allocation to companies within the Industrials sector. The top ten holdings are entirely comprised of major defense contractors and aerospace manufacturers such as General Electric, RTX, and Lockheed Martin, which reinforces the fund's focus on heavy industry without any dilution from unrelated sectors like technology or consumer staples. This uniformity suggests that the portfolio construction strictly adheres to its stated thematic boundaries, avoiding the common pitfall where funds with specific names might inadvertently include broad-market leaders that do not fit the narrative. The absence of non-industrial assets indicates a disciplined approach to maintaining sector purity.
Concentration risk is notably elevated due to the significant weight assigned to individual mega-cap stocks and the heavy reliance on just ten positions for nearly three-quarters of the total portfolio value. While this concentration amplifies exposure to specific industrial sub-sectors, particularly defense and aerospace, it also means the fund's performance will be heavily influenced by the fortunes of its largest constituents rather than a diversified basket of smaller industrials. The sector breakdown confirms that the weightings are consistent with an aggressive tilt toward established industry giants rather than emerging themes or broader market exposure. Consequently, while the thematic focus is sharp and unambiguous, the lack of diversification within the theme itself creates a distinct risk profile compared to more broadly constructed industrial indices.
AI analysis of holdings alignment vs fund theme. Not investment advice. Updated: 2026-05-23 07:43:12.884417+00
🏢 Sector Analysis
AI GeneratedThe ITA ETF exhibits an extremely concentrated exposure to the Industrials sector, with this single industry comprising 74.2% of total assets and accounting for every holding in its top ten positions. This allocation signals a distinct investment thesis centered on industrial cyclicality rather than broad diversification across economic drivers or asset classes. By dedicning nearly three-quarters of its portfolio to one sector, the fund amplifies sensitivity to macroeconomic variables that directly impact manufacturing, aerospace, and defense, such as infrastructure spending cycles, raw material costs, and regulatory shifts within these specific subsectors. The structure suggests a deliberate bet on industrial recovery or expansion, foregoing the risk mitigation typically achieved through exposure to technology, healthcare, or consumer sectors.
Concentration risk is pronounced due to both sector homogeneity and top-heavy weighting among individual equities. The fund's reliance on just ten holdings to generate its entire sector allocation creates significant idiosyncratic vulnerability; adverse events affecting a single major player could disproportionately impact overall performance. This is particularly evident in the weightings of General Electric, RTX, and Boeing, which collectively represent over 45% of the portfolio. Such high individual concentrations within an already dominant industry mean that earnings misses or operational setbacks for these specific companies would have an outsized drag on the fund's returns compared to more broadly diversified peers.
Furthermore, the allocation implies a tilt toward large-cap value characteristics often associated with established industrial conglomerates rather than small-cap growth or innovation-driven sectors. The heavy reliance on traditional giants like GE and RTX indicates a preference for proven market leaders with significant scale, potentially sacrificing exposure to emerging industrial technologies or niche players that might offer higher volatility but also greater upside potential. Ultimately, the fund's design prioritizes deep specialization in established industrial infrastructure over breadth, resulting in a profile where performance is tightly correlated with the health of specific heavy industry subsectors and their dominant incumbents.
AI-generated sector analysis from constituent-level data. Not investment advice. Updated: 2026-05-19 22:15:54.393526+00
Flow Driver Analysis
2-Step CircleWhich larger ETFs share ITA's holdings — and mechanically drive its price through index rebalancing flows?
Approximately 100% of ITA's weight flows through these larger ETFs
| Driver ETF | AUM | Expense | Shared Stocks | Weight Overlap |
|---|---|---|---|---|
| VTVT | $80B | — | 10 | 74.2% |
| QUSQUS | $1B | — | 10 | 74.2% |
| VISVIS | $8B | — | 10 | 74.2% |
| VONEVONE | $10B | — | 10 | 74.2% |
| VTIVanguard Total Stock Market Index Fund ETF Shares | $2.1T | 0.03% | 10 | 74.2% |
74% of ITA's portfolio by weight is also held by VT, which commands 6× more assets under management. When VT receives inflows, it mechanically buys these shared stocks — dragging ITA's NAV along regardless of any thematic or sector catalyst. Combined, the top 5 overlapping ETFs control exposure to 100% ofITA's weight.
Overlap computed from constituent-level holdings data across 5 ETFs. Price co-movement with driver ETFs is structural, not coincidental. Not investment advice.
ETF Look-Through Dashboard
Replaces $249/yr MorningstarPeer through the ETF wrapper to see exactly what you own. Every metric is computed from constituent-level data.
Weighted metrics calculated based on 96% of fund assets with available data.
Herfindahl-Hirschman Concentration Index
Morningstar-Style Box
Sector & Cap Explorer
ETF Fundamental Radar
Operational health is mixed, with the bulk of weight in the mid-range (4–6) Piotroski scores.
Piotroski F-Score (Operational Health)
Score 0-9: Measures Profitability, Leverage, and Efficiency
Based on 74% of fund weight with Piotroski data.
Computed by rolling up individual stock Piotroski F-Scores, Altman Z-Scores, and Beneish M-Scores weighted by each constituent's allocation. Data that Vanguard and BlackRock don't surface.
Dividend Safety True-Up
DeterministicThe dividend-paying companies inside ITA collectively pay out 33% of their Free Cash Flow to maintain the current yield. This leaves a substantial cash buffer, making dividend cuts unlikely even in a downturn. Based on 56% of fund weight in dividend-paying stocks.
FCF Payout Ratio = Dividends Paid / Free Cash Flow, weighted by constituent allocation. Not investment advice.
Earnings vs. Price Decomposition
ProprietaryITA is up 28.0% over the last 12 months. The underlying weighted earnings growth of its constituents is +37.2%. Despite earnings growth, valuations have contracted by 9.2% — the market is paying less per dollar of earnings than a year ago.
Earnings growth = weighted average YoY EPS growth of all constituents (capped at ±500% to limit outlier distortion). Based on 74% of fund weight with earnings data. Not investment advice.
Value Creation Map
ROIC vs WACCWhat percentage of ITA's weight is allocated to companies that create economic value (ROIC > WACC) vs. destroy it?
Of ITA's analyzed weight, 29% is invested in companies earning more than their cost of capital — genuine value creators. The remaining 71% consists of companies whose ROIC falls below their WACC, effectively destroying shareholder value with every dollar invested.
ROIC-WACC spread for 74% of fund weight with available data. Not investment advice.
Concentration Risk Monitor
HIGHGE at 19.4% contributes an estimated 45% of portfolio variance.ITA holds 10 stocks but behaves like an 12-stock portfolio due to weight concentration in the top holdings.
Effective # of Stocks = 1 / HHI (Herfindahl-Hirschman Index). Variance share approximated as w² / Σw². Not investment advice.
Passive Crowding Score
MODERATEHow much of each constituent's market cap is structurally locked in passive ETFs — a proxy for liquidity fragility during sell-offs.
ITA has a Passive Crowding Score of 40/100. On average, 12.0% of the market capitalization of ITA's underlying holdings is structurally locked in passive ETF vehicles. This indicates moderate passive ownership density. Index rebalances and ETF creation/redemption activity can amplify short-term volatility in the underlying holdings.
Passive $ = Σ(ETF AUM × holding weight) across all 31 tracked ETFs. Actual passive ownership is higher (includes mutual funds, pension funds). Not investment advice.
Under the Hood — Top 10 Constituents
| # | Ticker | Company | Weight | P/E | F-Score |
|---|---|---|---|---|---|
| 1 | GE | GE Aerospace Industrials | 19.43% | 40.2x | 5/9 |
| 2 | RTX | RTX Corp Industrials | 15.10% | 33.6x | 8/9 |
| 3 | BA | Boeing Co Industrials | 10.25% | 91.7x | 7/9 |
| 4 | GD | General Dynamics Corp Industrials | 4.78% | 21.8x | 8/9 |
| 5 | HWM | Howmet Aerospace Inc Industrials | 4.75% | 59.9x | 8/9 |
| 6 | TDG | TransDigm Group Inc Industrials | 4.53% | 39.2x | 6/9 |
| 7 | LHX | L3Harris Technologies Inc Industrials | 4.32% | 34.3x | 8/9 |
| 8 | LMT | Lockheed Martin Corp Industrials | 3.92% | 25.7x | 6/9 |
| 9 | NOC | Northrop Grumman Corp Industrials | 3.88% | 17.7x | 6/9 |
| 10 | RKLB | Rocket Lab Corp Industrials | 3.27% | — | 5/9 |
Historical Holdings Snapshots
Browse how ITA’s holdings have changed across SEC filing dates. Showing top holdings per snapshot.
2026-05-24
10 holdings · 74.2% tracked weight2026-05-23
10 holdings · 74.2% tracked weight2026-05-22
10 holdings · 74.2% tracked weight2026-05-21
10 holdings · 74.2% tracked weight2026-05-20
10 holdings · 74.2% tracked weightSource: SEC filings and fund provider disclosures. Shows last 6 snapshot dates, top 15 holdings per date by weight.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Computed from 1,200+ trading days with 5% risk-free rate.
Price Chart with Moving Averages
What Drove ITA Today?
Daily return attribution — which holdings contributed most (and least) to the fund's move.
Technical Setup
AI GeneratedITA is currently trading at $225.37, a price point that requires contextualization against its surrounding Simple Moving Average envelope to assess relative value and potential mean-reversion dynamics. Without specific data regarding the location of the upper or lower SMA bands, it remains unclear whether this level represents an overextended condition ripe for a snap-back toward the average or if the asset is consolidating within a neutral channel. If the current price sits significantly above the mid-range of the envelope, historical patterns often suggest increasing probability of a downward correction as volatility compresses and statistical probabilities favor a return to the mean. Conversely, trading well below the upper band might indicate undervaluation relative to recent trends, potentially setting up for an upward drift if momentum shifts back toward equilibrium. The absence of defined band positions limits definitive conclusions on immediate directional bias, but the focus remains on how this specific price level interacts with long-term trend lines. Technical analysis in such scenarios typically looks for divergence between price action and moving average slopes to gauge exhaustion or strength. Until the relationship between $225.37 and the precise SMA boundaries is established, any assessment of mean-reversion potential remains speculative rather than confirmed by the provided figures alone. Market participants should monitor whether subsequent trading sessions push this figure further away from the calculated averages or draw it back into a tighter range around them.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the ETF's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Yield & Income
Sector Drift Over Time
How ITA’s sector allocation has shifted across snapshots. Use the slider to travel through time.
Active Conviction Tracker
Shares bought and sold between the latest two data snapshots — reveals what the fund manager is actually doing.
Explore More
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB is for informational purposes only. Not investment advice.