ITA vs JETS: Which Is the High Flying Airline and Aerospace ETF to Profit From in 2026?
2026-08-25 00:07
•Brendan Coffey •The Motley Fool
• •••••• Axe Cap view
Aerospace ETFs: Stability in Defense vs Risks in Airlines
Comparing ITA and JETS ETFs through a South African perspective favors defense exposure amid market volatility.
When deciding between aerospace ETFs ITA and JETS, the safer bet lies with ITA. It leans on defense giants like GE Aerospace and RTX, showing less price swings and better returns over the last year. South African investors should note how this stability contrasts with the airline sector’s rollercoaster ride, represented by JETS. Commercial airlines face unpredictable demand and fuel price shocks—fluctuations that can hit JETS hard. For those watching the rand, a weaker USD/ZAR could add currency risk to JETS’s more erratic profile. ITA’s focus on defense contractors, less prone to consumer spending cycles, aligns better with the cautious appetite many JSE investors have in uncertain times. However, geopolitical shifts or a rapid consumer rebound could prove airlines more resilient than expected. this is just our opinion and not financial advice
Prefer adding ITA for exposure to aerospace via defense, trimming any JETS holdings unless you’re a high-risk, contrarian investor. Keep an eye on the USD/ZAR as currency swings can sway returns.
- ITA
- JETS
- USD/ZAR
- Geopolitical surprises lifting airlines unexpectedly
- Rand volatility impacting offshore aerospace earnings
7/10
The article compares two aerospace ETFs: iShares U.S. Aerospace & Defense ETF (ITA) and U.S. Global Jets ETF (JETS). ITA focuses on defense contractors and aerospace manufacturers with a lower 0.37% expense ratio, higher 1-year return of 22.9%, and lower volatility (beta 0.74). JETS concentrates on commercial airlines with a higher 0.6% expense ratio and 16.9% 1-year return but greater volatility (beta 1.18). The article recommends ITA as the better long-term investment due to superior historical performance and stability.
Our take is based on reporting first published by The Motley Fool.
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