Defense ETF nears bear-market territory
ITA•The iShares U.S. Aerospace & Defense ETF fell 18.2% from its August 14 record close to $207.18, nearing the 20% decline commonly used to define a bear market. It is down 3.1% since last Friday and on track for a seventh straight weekly decline.
1. Budget uncertainty weighs
The iShares U.S. Aerospace & Defense ETF has come under pressure despite expectations for higher defense spending. Bernstein said investors are frustrated by Congress’ inability to provide budget clarity as key funding decisions remain unresolved.
2. Sharp decline and oversold reading
The ETF closed Wednesday at $207.18, its lowest close since December 2025, down 18.2% from its August 14 record closing high of $253.22 and 19.2% from its August 6 intraday peak of $256.53. It recorded its largest monthly decline since March and worst quarterly drop since the first quarter of 2020. Its weekly RSI fell to 29.9, entering oversold territory for the first time since October 2023; during the COVID-driven market collapse, the indicator fell to 9.4 before turning higher.
