IDEF: iShares Defense Industrials Active ETF
What this ETF is trying to do
The iShares Defense Industrials Active ETF (ticker: IDEF) is an exchange-traded fund designed to invest in the defense industry. It focuses on companies involved in defense and aerospace. Because this is an "active" ETF, managers use their expertise to select holdings rather than just following a fixed list of stocks.
What the numbers show
As of October 9, 2026, the current price of IDEF is $31.18. Looking at historical performance, we can see different trends depending on the time frame:
• Year-to-Date (YTD): The fund has seen a price return of approximately 1.20%. When including distributions, the YTD total return is approximately 1.37%.
• One-Year Performance: Over the last year, the fund experienced a share-price decline of approximately 3.66%. The one-year total return, which includes distributions, was approximately -3.33%.
• Price Comparison: The estimated price from roughly one year ago was $32.37.
It is important to note that "price return" only tracks the change in the share price, while "total return" includes the impact of distributions.
Income and distribution explanation
IDEF provides a distribution yield of approximately 0.34%. This represents the cash distributions relative to the ETF's price. Over the last 12 months, there were 2 distributions. The distribution frequency is described as "irregular" or "less frequent."
When looking at income, it is important to remember that a distribution yield tells you how much cash was paid out, but it does not guarantee future payments or protect the value of your initial investment.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the erosion-risk score, which is 94. This is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.
Pros
• Sector Focus: Provides exposure to major defense names like RTX Corp (4.93%) and Lockheed Martin Corp (3.21%).
• Stable Risk Profile: The erosion-risk score suggests the fund's price movement has been relatively stable or sideways rather than showing extreme deterioration.
Cons
• Recent Price Decline: The fund has seen a negative one-year total return of approximately -3.33%.
• Lower Income: With a distribution yield of 0.34%, this fund is not primarily designed for high current income.
Beginner takeaway
IDEF focuses on the defense and aerospace industry. While it has seen some share-price decline over the past year, its erosion-risk score suggests a stable pattern. Investors should distinguish between the share price movement and the total return, which includes the small amount of cash distributions paid by the fund. Always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | RTX CORP | RTX | 4.93% |
| 2 | n/a | PLTR | 4.03% |
| 3 | LOCKHEED MARTIN CORP | LMT | 3.21% |
| 4 | ROLLS-ROYCE HOLDINGS PLC | n/a | 3.09% |
| 5 | n/a | SPCX | 3.01% |
| 6 | BOEING CO | BA | 2.83% |
| 7 | GENERAL DYNAMICS CORP | GD | 2.82% |
| 8 | NORTHROP GRUMMAN CORP | NOC | 2.53% |
| 9 | PALO ALTO NETWORKS INC | PANW | 2.02% |
| 10 | AIRBUS SE | n/a | 1.98% |