1. iShares U.S. Aerospace & Defense ETFThe iShares U.S. Aerospace & Defense ETF ( -1.9%) is the largest ETF focused on defense, with $6.3 billion in net assets as of early October 2024. The ETF is designed to provide exposure to domestic United States and the commercial aerospace industry. As of October 2024, the top five holdings in the iShares U.S. Aerospace & Defense ETF were: ( -3.1%)RTX ( -1.18%) ( 0.6%)Axon Enterprise ( -6.31%)TransDigm Group ( -0.52%)The top five holdings represent just over 54% of the in a portfolio that includes 36 stocks. The iShares U.S. Aerospace & Defense ETF has a 0.40% .2. Invesco Aerospace & Defense ETFThe Invesco Aerospace & Defense ETF ( -1.31%) is based on the SPADE Defense Index, designed to identify companies involved in the development, manufacturing, operations, and support of the U.S. defense, homeland security, and aerospace sectors. The ETF has about $3.82 billion in assets. As of October 2024, the top five holdings in the Invesco Aerospace & Defense ETF were:Lockheed MartinRTXGeneral Electric ( 0.17%) ( 0.71%)The ETF has 55 total holdings, with the top five representing about 35.3% of the total portfolio. The Invesco Aerospace & Defense ETF has a 0.58% expense ratio., Defense stocks offer steady income backed by constant demand from the U.S. government. Investing in a defense ETF provides broader sector exposure than individual stocks. Top defense ETFs include , 6 Best Defense ETF Picks for 2025 While tariffs are cutting into defense stock returns, hope springs eternal with a big U.S. budget package on the way..