GET DAILY SIGNALSFITE vs. SHLD: Weighing Two Defense Tech ETFs
Key Takeaways
- FITE tracks the S&P Kensho Future Security Index, blending cybersecurity, space, drones, and defense technology, while SHLD tracks the Global X Defense Tech Index and offers concentrated exposure to global defense primes and aerospace leaders.
- FITE is more diversified and tech-heavy, with roughly 80 holdings and a ~0.45% expense ratio; SHLD is more concentrated, with roughly 55 holdings and a 0.50% expense ratio.
- SHLD is materially larger and more liquid, with several billion dollars in assets under management (AUM), compared with FITE's roughly $150 million, which can affect trading costs and spreads.
- SHLD's top holdings tilt toward established defense contractors and software-heavy names such as PLTR, RTX, and LMT, while FITE tilts toward mid- and small-cap innovators in security and space.
- Tickeron AI Verdict: SHLD — its larger scale, purer defense-sector momentum, and clearer trend consistency give it a structural edge over FITE in the current environment.
Introduction
FITE and FITE along with SHLD stand out among the ETFs often discussed in national-security investing, though each follows its own approach. FITE takes a broad view of “future security,” covering cybersecurity, space, autonomous systems, and advanced defense technology. SHLD, on the other hand, provides a more focused, globally diversified stake in defense technology and aerospace hardware. This comparison feels timely now, given rising defense budgets worldwide, ongoing military modernization, and increasing interest in dual-use technologies that influence holdings in both funds. Even with thematic overlap, the two differ in holdings, sector weightings, costs, and liquidity — all of which shape how they perform across market cycles.
State Street SPDR S&P Kensho Future Security ETF (FITE) Overview
FITE is a passively managed ETF designed to track the S&P Kensho Future Security Index. It typically puts at least 80% of assets into the index’s securities, which cover U.S.-listed companies involved in military, cybersecurity, and homeland-security applications. The fund holds about 80 positions and carries a net expense ratio near 0.45%. Its allocation leans heavily into technology, with emphasis on systems software, electronic equipment, and communications equipment, plus a solid industrials (aerospace and defense) component. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. Holdings include Planet Labs, Elbit Systems, Palo Alto Networks, Red Cat Holdings, and Iridium Communications. This mix creates a mid- and small-cap tilt that can boost growth potential while also raising volatility compared with large-cap peers. Its more modest AUM means liquidity is lower, so investors should factor in potential trading spreads.
Global X Defense Tech ETF (SHLD) Overview
SHLD is a passively managed ETF that aims to match the Global X Defense Tech Index. It invests at least 80% of assets in securities from that index, including common stocks, ADRs, and GDRs tied to defense technology and aerospace innovation. The fund holds roughly 55 positions and charges a net expense ratio of about 0.50%. Its portfolio is noticeably more concentrated than FITE’s, with the top ten holdings often making up more than half of assets. Leading positions feature Palantir Technologies, RTX, Northrop Grumman, General Dynamics, Lockheed Martin, L3Harris Technologies, and international names such as Rheinmetall, BAE Systems, and Leonardo. Sector exposure centers on industrials with a smaller information-technology portion. SHLD’s scale, with several billion dollars in AUM, supports stronger liquidity and tighter spreads than FITE.
Industry and Thematic Backdrop
Both ETFs sit within a multi-year defense investment cycle driven by geopolitical tensions, NATO countries moving toward higher military spending, and fast adoption of autonomous, space-based, and software-defined systems. Europe’s rearmament efforts have supported European defense primes, while U.S. contractors continue to benefit from steady modernization budgets. At the same time, spending on cybersecurity and dual-use technologies keeps rising as threats shift into digital and orbital areas. Risks to watch include unpredictable government budgets, program delays, valuation concentration in software-heavy defense names, and sensitivity to interest-rate moves that affect the longer-duration growth stocks in both funds.
Performance and Positioning Comparison
In recent periods and market cycles, SHLD has shown stronger trend consistency, thanks to the concentrated leadership of large-cap defense primes and software names central to the defense-modernization theme. FITE’s broader, tech-oriented makeup has led to more variable performance, as its cybersecurity and small-cap space holdings react to a wider range of earnings and valuation factors. Positioning also differs: SHLD favors established, cash-generating contractors with global reach, while FITE leans toward emerging innovation names that offer higher growth but greater sensitivity to drawdowns. These differences help account for varying volatility profiles and how each fund behaves during sector rotations.
Refining My ETF Research with Tickeron Tools
When comparing sector ETFs like these, I often turn to Tickeron’s AI Screener to quickly filter holdings by technical patterns, fundamentals, and performance metrics. It helps surface ideas and compare options more efficiently than manual work, and I’ve found it useful for spotting how different defense exposures align with current trends.
Tickeron AI Verdict
Based on the structural factors I’ve reviewed, Tickeron’s AI currently points to SHLD over FITE. SHLD delivers a purer, more concentrated defense-technology exposure with stronger trend consistency, deeper liquidity, and greater scale, while its global mix of established primes supports steadier sector momentum. FITE’s lower expense ratio and wider diversification into cybersecurity and space are positive features, yet its smaller size, mid- and small-cap tilt, and more spread-out sector exposure currently add relative volatility without a clearer momentum advantage. This assessment is probabilistic and reflects present market conditions rather than a guaranteed result.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SHLD's Indicator enters downward trend
The Aroon Indicator for SHLD entered a downward trend on October 19, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 56 similar instances where the Aroon Indicator formed such a pattern. In 46 of the 56 cases the stock moved lower. This puts the odds of a downward move at 82%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SHLD as a result. In 39 of 49 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
The Moving Average Convergence Divergence Histogram (MACD) for SHLD turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 27 similar instances when the indicator turned negative. In 19 of the 27 cases the stock turned lower in the days that followed. This puts the odds of success at 70%.
SHLD moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHLD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for SHLD crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 5 of 5 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Following a +2.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where SHLD advanced for three days, in 220 of 242 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
SHLD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category Industrials