At a glance
EUAD charges 0.5% a year. It has $1.24B in assets; it paid 0.43% of its price in distributions over the past 12 months, annual. Over the past year it returned −11.2% with distributions reinvested (S&P 500: +11.5%). Its ten largest positions make up 33.9% of the fund, out of 31 in all.
The short version
Select STOXX Europe Aerospace & Defense ETF (EUAD) is an index fund that tracks the STOXX Europe Total Market Aerospace & Defense Index. That index holds European companies such as Airbus, MTU Aero Engines, BAE Systems and Rolls-Royce. It bets on one sector in one region, and its expense ratio is 0.50%. It gained 74.5% in 2025, then lost 11.2% over the one year through October 27, 2026.
Price history
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EUAD -11.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EUAD price data to Oct 27, 2026 | -6.7% | -11.2% | — | — | — | +25.1% |
- Over the year to Oct 27, 2026, EUAD returned -11.2%.
- Its worst full calendar year was 2025 (+74.5%); its best was 2025 (+74.5%).
- The deepest fall in its price history was 22% (Jan 13, 2026 to May 15, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -6.7% |
| 2025 | +74.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.1700 |
What's inside
As of May 31, 2026, the fund held 31 securities; the ten largest made up 33.9% of assets, and 63.89% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Airbus SE | 5.82% | |
| MTU Aero Engines AG | 4.32% | |
| BAE Systems PLC | 3.51% | |
| Rolls-Royce Holdings | 3.30% | |
| Leonardo SpA | 3.24% | |
| Safran SA | 2.96% | |
| Rheinmetall AG | 2.95% | |
| Saab AB | 2.74% | |
| Thales SA | 2.71% | |
| CLEARST. RYCEY SWAP Other | 2.35% | |
| Hensoldt AG | 1.92% | |
| Babcock Internationa | 1.62% | |
| QinetiQ Group PLC | 0.79% | |
| Chemring Group PLC | 0.52% | |
| CLEARST. BAESY SWAP Other | 0.35% |
By country
United Kingdom 12.4%France 10.21%Germany 7.46%Italy 3.16%Sweden 2.68%By asset type
Stocks 36.4%Other -0.51%What changed recently
- Over the three months to May 31, 2026, investors withdrew a net $86.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -12.23%, -0.44%, +4.80%.
How it works
The fund tries to match the total return, before fees, of the STOXX Europe Total Market Aerospace & Defense Index from STOXX Ltd. The index starts with a broad index of 17 European countries that covers at least 95% of each country's free-float market value. Free float counts only the shares that are readily available to trade. From that group, the index keeps only companies whose main revenue comes from civil or military aerospace and defense equipment, systems and services. As of July 31, 2024, the index held 25 companies.
The fund is passive. It does not try to beat the index, and it does not move to cash when markets fall. It uses replication, which means it holds the index's stocks in roughly the same proportions as the index. When a stock is hard or costly to buy, it may use a representative sample instead. It may also use swaps. A swap is a contract in which a bank pays the fund a stock's return, which exposes the fund to the risk that the bank fails to pay. The fund is non-diversified, so it can hold large stakes in a few companies. Its portfolio turnover was 16.2%.
The fund's May 31, 2026 report listed 32 positions, with 33.9% of net assets in the top 10. It showed about 36% of net assets in stocks and about 64% in cash, along with swaps tied to Rolls-Royce and BAE Systems.
What it really costs
- EUAD charges 0.5% a year.
- Of that, 0.05% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EUAD | $51 | $160 | $280 | $628 |
In a retirement portfolio
EUAD is a concentrated, non-diversified bet on one European industry, with large price swings and a short history.
EUAD launched on October 22, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, was a 74.5% gain. Its deepest drop was 22%, from January 13 to May 15, 2026, and it had not recovered as of October 27, 2026. One-year volatility was 28.4%. Anyone who may need to sell shares in a bad year could be forced to sell after a drop of that size.
Income is small. The yield was 0.43% as of October 27, 2026, and the fund pays once a year. The expense ratio is 0.50%. On the SEC's standard $10,000 example, that comes to about $51 after one year and $628 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a targeted slice of European aerospace and defense companies such as Airbus, BAE Systems, Rheinmetall, Saab and Thales.
- Holders comfortable with sharp swings: one-year volatility was 28.4%, and the fund fell 22% between January and May 2026.
- Investors who want stock exposure outside the US, mainly the UK, France and Germany, and accept the currency and political risks that come with it.
Look elsewhere if
- Retirees who want regular income: the yield was 0.43% as of October 27, 2026, and the fund pays only once a year.
- Investors who want a long track record: the fund launched October 22, 2024, and missed the 2008, 2020 and 2022 downturns.
- Anyone who wants broad diversification: the fund is non-diversified and tied to a single industry in a single region.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does EUAD pay a dividend?
Yes, but it is small and paid once a year. Over the 12 months through October 27, 2026, EUAD paid about $0.17 per share, a yield of 0.43%. Most European aerospace and defense companies in the index pay modest dividends, and the fund passes them on annually. Anyone who wants regular monthly or quarterly income from their holdings will get little of it here. Most of the fund's return has come from share-price changes.
What stocks are in EUAD?
EUAD holds European aerospace and defense companies. As of May 31, 2026, the largest positions were Airbus (5.82%), MTU Aero Engines (4.32%), BAE Systems (3.51%), Rolls-Royce (3.3%), Leonardo (3.24%), Safran (2.96%) and Rheinmetall (2.95%). Saab, Thales and Hensoldt were also near the top. The United Kingdom, France and Germany made up the largest country weights. The fund also held swaps tied to Rolls-Royce and BAE Systems.
What is EUAD's expense ratio?
EUAD's expense ratio is 0.50% a year, according to its prospectus filed December 29, 2025. On the SEC's standard example, a $10,000 investment earning 5% a year would cost about $51 in the first year, $160 over three years, $280 over five years and $628 over 10 years, assuming the shares are sold at the end of each period. The fund's portfolio turnover was 16.2%, which helps keep trading costs inside the fund lower.
How has EUAD performed since it launched?
EUAD has swung widely in its short life. It gained 74.5% in 2025, its only full calendar year. In 2026 through October 27, it was down 6.67%, and over the one year through that date it lost 11.2%. Since its October 22, 2024 launch, its total gain was about 25.1%. Its deepest drop was 22%, from January 13 to May 15, 2026, and it had not recovered as of October 27, 2026.
Is EUAD good for a retirement portfolio?
It fits better as a small side holding than as a core investment. EUAD is non-diversified and focused on one industry in Europe. Its one-year volatility was 28.4%, and it fell 22% in early 2026. Its yield was 0.43% as of October 27, 2026, so it adds little income. Because it launched in October 2024, there is no record of how it behaves in a long bear market.