SHLD ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The Global X Defense Tech ETF (SHLD) is a thematic ETF focused on defense technology companies spanning cybersecurity, artificial intelligence, and advanced military equipment. It can be a fitting choice for investors who follow related stocks and the outlook for defense budgets and geopolitical policy.
SubscribeWhat Is the Global X Defense Tech ETF?
This thematic ETF tracks the Global X Defense Tech Index and concentrates its investments in defense technology companies working in cybersecurity, artificial intelligence, and advanced military hardware.
It suits investors who want diversified exposure to defense and security themes as geopolitical variables and defense budget trends evolve.
It is a passively managed (index-tracking) ETF operated by Global X.
How Does the Global X Defense Tech ETF Invest?
| Item | Details |
|---|---|
| Management style | Passive (index tracking) |
| Tracked index | Global X Defense Tech Index |
| Rebalancing frequency | Regular rebalancing |
| Dividend frequency | Semiannual dividends |
| Total expense ratio | 0.50% |
The fund holds the constituents of the defense technology index on a rules-based approach, tracking the performance of companies tied to cybersecurity, artificial intelligence, and advanced military hardware. By combining traditional defense primes with newer defense technology companies, it broadens its thematic exposure.
- Holds both traditional defense stocks and defense technology stocks
- Non-diversified structure results in high thematic concentration
Global X Defense Tech ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $6.7B, and the total expense ratio is 0.50% per year.
Compared with ITA, XAR, and PPA, which share the same aerospace and defense theme, this fund has a higher weighting in defense technology companies.
Global X Defense Tech ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeInterest in the theme has fluctuated with geopolitical developments and defense budget discussions, and fund inflows have tended to stand out when related issues come to the fore.
Investment demand for defense and security themes continues, and fund flows react sensitively to related news. Interest tends to grow around defense budget cycles or when policy discussions gain attention.
Global X Defense Tech ETF Strengths and Weaknesses
Its strength is concentrated exposure to the defense technology theme, while its weakness is the single-stock concentration risk that comes with a non-diversified structure.
💪 Key Strengths
⚠️ Points to Watch
Global X Defense Tech ETF Alternatives and Related Products
SMH, IHAK, and FDTX shown in the table follow semiconductor, cybersecurity, and technology innovation themes, which are growth themes different from this fund. For direct comparison, ITA, XAR, and PPA share the same aerospace and defense theme. These aerospace and defense ETFs have in common a broad composition with a high weighting in traditional defense primes. Investors who want leveraged exposure may also consider DFEN (3x).
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SMH | VanEck Semiconductor ETF | $522.49 | -7.0% | $71.9B | 0.35% | 0.21% | +43.6% |
 IHAK | iShares Cybersecurity and Tech ETF | $73.57 | -2.8% | $1.3B | 0.47% | 0.06% | +44.3% |
 FDTX | Fidelity Disruptive Technology ETF | $51.17 | -6.1% | $304.7M | 0.50% | - | +20.7% |
 BCTK | Baron Technology ETF | $27.49 | -4.6% | $247.5M | 0.75% | 0.18% | - |
 CHPS | Xtrackers Semiconductor Select Equity ETF | $74.81 | -8.0% | $139.1M | 0.15% | 0.41% | +61.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| PLTR | Palantir Technologies Inc | 0.18% | $184.11 | -6.3% | $442.4B | 156.9 | - |
| LMT | Lockheed Martin Corp | 0.26% | $636.95 | -1.0% | $147.1B | 22.6 | 2.2% |
| RTX | RTX Corp | 0.09% | $199.80 | +0.2% | $269.6B | 32.5 | 1.44% |
| GD | General Dynamics Corp | 0.23% | $372.59 | +0.5% | $100.8B | 22.7 | 1.7% |
| NOC | Northrop Grumman Corp | 0.08% | $557.54 | -0.9% | $79.2B | 17.6 | 1.73% |
Global X Defense Tech ETF Investor Checkpoints
Here are the points to review before investing in SHLD. Because thematic ETFs carry heavy stock concentration and policy dependence, it is worth fully understanding the fund's structure before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the fee level for a thematic ETF | In line with category average |
| 🎯 Stock concentration | Top holdings weighting in a non-diversified structure | Large top holdings weighting |
| 🏛️ Policy sensitivity | Check changes in defense budgets and government contract policy | Sensitive to geopolitical issues |
| 🔄 Alternatives | Compare with traditional defense ETFs such as ITA, XAR, and PPA | Different thematic composition |
The main risk factors are single-stock concentration risk from the non-diversified structure and volatility from changes in defense policy. When geopolitical tensions ease, interest in the theme may decline.
It is a suitable choice for investors who want to concentrate on the defense technology theme, and those seeking broader traditional defense exposure can also consider broad aerospace and defense ETFs such as ITA, XAR, and PPA.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 1, 2026.
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