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Invest in the Global Defense Industry with the Global X Defense Tech ETF (SHLD)
ByAinvest
Monday, Aug 18, 2025 11:18 am ET1min read
SHLD is a sector ETF designed to provide investors with exposure to the global defense industry. It is constructed by Global X by Mirae Asset, a thematic ETF provider. The ETF is focused on companies involved in the development and production of defense technology, including aerospace and defense companies, cybersecurity firms, and defense contractors. By investing in SHLD, investors can gain exposure to a diversified portfolio of defense-related companies.
The Global X Defense Tech ETF (SHLD) is a thematic exchange-traded fund (ETF) designed to provide investors with broad exposure to the global defense industry. Launched by Global X, a subsidiary of Mirae Asset Financial Group, SHLD seeks to track the performance of the Global X Defense Tech Index, which includes companies involved in the development and production of defense technology, such as aerospace and defense companies, cybersecurity firms, and defense contractors [1].The ETF has an expense ratio of 0.50%, which is relatively low compared to other sector ETFs, making it an attractive option for investors seeking cost-effective exposure to the defense sector. As of July 2, 2025, the ETF has a year-to-date return of 19.71% and a 1-year return of 20.21%, indicating strong performance in the defense sector [1].
SHLD is heavily focused on the Industrials sector, with approximately 85.77% of its assets allocated to this sector. The top 10 holdings in the ETF include companies such as Raytheon Technologies (RTX), General Dynamics (GD), and Lockheed Martin (LMT), which are major players in the defense industry [1].
In addition to its sector exposure, SHLD also provides geographic diversification, with significant investments in the United States (63.6%) and Europe (14.7%). This diversification helps to mitigate the risks associated with investing in a single geographic region [1].
The launch of SHLD coincides with the increasing importance of the defense industry, driven by factors such as geopolitical tensions, technological advancements, and the growing demand for cybersecurity solutions. As the global defense market continues to grow, SHLD offers investors a convenient and cost-effective way to gain exposure to this sector.
References
[1] https://money.usnews.com/funds/etfs/technology/global-x-defense-tech-etf/shld
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