Vanguard does not offer an aerospace and defense ETF, and nothing in its current lineup suggests one is coming. Its sector ETF shelf covers the 11 broad GICS sectors and stops there, with no sub-industry funds. The closest Vanguard product is the Vanguard Industrials ETF (VIS), which holds about 24% aerospace and defense stocks. If you want pure A&D exposure, you can buy any competing fund commission-free through a Vanguard brokerage account.
The Closest Vanguard Fund: VIS
The Vanguard Industrials ETF (VIS) tracks the MSCI US Investable Market Industrials 25/50 Index. As of February 2026, aerospace and defense stocks make up 24.12% of the portfolio, the single largest sub-industry in the fund. The expense ratio is 0.09%.
Among the A&D names in VIS, RTX Corporation sits at 3.83% of the portfolio, Boeing at 2.51%, and Lockheed Martin at 1.93%. GE Aerospace, listed as General Electric, leads the entire fund at 5.09%, though its revenue mix extends beyond pure defense. The rest of the top ten includes Caterpillar, Deere, and Uber, which have nothing to do with defense. That’s the tradeoff. You get broad industrials exposure with a meaningful A&D tilt, not a concentrated bet on the sub-industry.
What About VTI?
The Vanguard Total Stock Market ETF (VTI) holds every publicly traded U.S. stock, including every A&D company. With 3,503 holdings as of February 2026, any single sub-industry’s weight is tiny. VTI works if you want total-market diversification and are comfortable with whatever thin slice of A&D that naturally includes. It is not a way to lean into the sector.
Dedicated A&D ETFs You Can Buy Through Vanguard
Three ETFs dominate the pure-play A&D space. All three are available for purchase through a Vanguard brokerage account, and Vanguard charges no commissions on online ETF trades. Each weights its holdings differently, and those differences change what you actually own.
iShares U.S. Aerospace and Defense ETF (ITA)
ITA is the largest A&D ETF, with roughly $12.9 billion in net assets as of March 2026. It tracks the Dow Jones U.S. Select Aerospace & Defense Index and uses market-capitalization weighting, so the biggest companies dominate the portfolio. When GE Aerospace or RTX has a strong quarter, ITA feels it more than the alternatives. The expense ratio is 0.38%.
SPDR S&P Aerospace and Defense ETF (XAR)
XAR tracks the S&P Aerospace & Defense Select Industry Index and uses equal weighting. Instead of letting mega-caps take over, XAR spreads its money more evenly across holdings, which gives mid-cap and small-cap defense companies a bigger voice and adds exposure to smaller suppliers and emerging defense-tech firms. Assets are about $5.5 billion, and the expense ratio is 0.35%.
Invesco Aerospace and Defense ETF (PPA)
PPA tracks the SPADE Defense Index, which focuses on companies involved in the development, manufacturing, and support of U.S. defense, homeland security, and aerospace operations. Assets are roughly $7.4 billion. The expense ratio of 0.58% is the highest of the three, reflecting the narrower index it follows.
How the Costs Compare
Expense ratios compound, and the gap here is wide enough to matter over a long holding period:
- VIS (Vanguard Industrials): 0.09%, cheapest option, but only about 24% A&D exposure
- XAR (SPDR): 0.35%, equal-weighted, strongest small-cap tilt
- ITA (iShares): 0.38%, largest fund, market-cap weighted, dominated by mega-caps
- PPA (Invesco): 0.58%, defense and homeland security focus, narrowest mandate
On a $50,000 investment, the annual fee difference between VIS and PPA works out to about $245. The gap widens as the balance grows. Investors comfortable with the broader industrials exposure in VIS save meaningfully over time. Investors who want pure A&D concentration pay for it.
If You Want to Avoid Defense Instead
Coming at this from the opposite direction, Vanguard’s ESG U.S. Stock ETF (ESGV) screens out companies involved in conventional military weapons, nuclear weapons, chemical and biological weapons, cluster munitions, anti-personnel landmines, and civilian firearms. Major defense contractors including Lockheed Martin, RTX, and Northrop Grumman are excluded from ESGV’s holdings. Worth knowing whether you’re seeking defense exposure or deliberately avoiding it.