SHLD: GLOBAL X DEFENSE TECH ETF
What this ETF is trying to do
The Global X Defense Tech ETF (SHLD) focuses on companies involved in defense technology. Based on its top holdings, it invests in companies like Palantir Technologies (11.32%), RTX Corp (9.04%), and General Dynamics Corp (8.38%). These companies typically build technology and equipment for national security and defense.
What the numbers show
As of October 6, 2026, the share price is $60.06. To understand how the price has moved, we look at two different types of returns: price return (the change in share price) and total return (which includes distributions).
• Year-to-Date (YTD): The price return is -7.30%, and the total return is -7.01%.
• One Year: The price return is -15.49%, and the total return is -14.91%.
• Three Year: The price return is 151.32%, and the total return is 155.60%.
For a simple example, if you had invested $10,000 based on the estimated price from roughly one year ago ($71.07), the price-only decline of -15.49% would mean your investment's value (excluding distributions) would be approximately $8,451.
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. It has a distribution yield of approximately 0.71%. Over the last 12 months, it has made 2 payouts. The frequency of these payments is described as irregular or less frequent.
It is important for beginners to remember that a distribution yield is not the same as a total return. A high yield does not guarantee that the investment is growing or that your original money is safe.
NAV erosion explanation
"NAV erosion" happens when the underlying value of an ETF's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. This ETF has an erosion score of 55, which is labeled as "Moderate price erosion." However, the severe erosion-risk flag is false, meaning it did not trigger the highest warning level.
Pros
• Long-term growth: The three-year total return is strong at 155.60%.
• Diversified Defense Exposure: It holds 54 different companies, including major names like Lockheed Martin (8.20%) and Northrop Grumman (7.69%).
Cons
• Recent decline: Both the YTD and one-year price returns are negative.
• Low income: The distribution yield is relatively low (0.71%), and payments are irregular.
Beginner takeaway
The Global X Defense Tech ETF has seen significant growth over the last three years, but it has faced a share-price decline over the last year. While it provides some cash income, the primary focus is on defense technology companies. Investors generally care about principal stability to ensure their original investment doesn't disappear while they collect income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PALANTIR TECHNOLOGIES INC ORDINARY SHARES CLASS A | PLTR | 11.32% |
| 2 | RTX CORP | RTX | 9.04% |
| 3 | GENERAL DYNAMICS CORP | GD | 8.38% |
| 4 | LOCKHEED MARTIN CORP | LMT | 8.20% |
| 5 | NORTHROP GRUMMAN CORP | NOC | 7.69% |
| 6 | BAE SYSTEMS PLC | n/a | 4.68% |
| 7 | HANWHA AEROSPACE CO LTD | n/a | 3.89% |
| 8 | RHEINMETALL AG | n/a | 3.76% |
| 9 | THALES | n/a | 3.75% |
| 10 | L3HARRIS TECHNOLOGIES INC | LHX | 3.62% |