The iShares U.S. Aerospace & Defense ETF (ITA) has surged approximately 11% year-to-date, driven by headlines that former President Trump is considering a $500 billion increase to annual defense appropriations. Trading volumes spiked to record levels on the announcement, with daily turnover exceeding 14 million shares at its peak. Investors have bid up holdings in major defense contractors—representing roughly 80% of ITA’s weight—amid heightened geopolitical tensions along Europe’s eastern flank and in the Taiwan Strait. The fund’s largest constituents, including Lockheed Martin and Northrop Grumman, have each contributed more than 1.5 percentage points to ITA’s YTD performance.