At a glance
SHLD charges 0.5% a year, above the 0.39% average of the 7 funds most like it (the 6th cheapest of 8). It has $7.24B in assets, the 3rd largest of that group; it paid 0.68% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −6.9% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +36.9% a year. Its ten largest positions make up 64.8% of the fund, out of 57 in all.
The short version
Global X Defense Tech ETF (SHLD) tracks the Global X Defense Tech Index, offering a stake in defense contractors and defense-technology firms in the US, Europe and Asia. As of August 31, 2026, Palantir Technologies was its largest holding, and about a third of assets were in non-US firms such as BAE Systems and Rheinmetall. Its yearly fee of 0.50% is above the 0.39% average for similar funds.
Price history
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SHLD -6.9% 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 | |
|---|---|---|---|---|---|---|
| SHLD official prospectus, to Dec 31, 2025 | — | +74.55% | — | — | — | +52.57% |
| SHLD price data to Oct 27, 2026 | -2.1% | -6.9% | +36.9% | — | — | +35.8% |
- Over the year to Oct 27, 2026, SHLD returned -6.9%, 6th of 8 among similar funds.
- Its worst full calendar year was 2024 (+35.0%); its best was 2025 (+74.2%).
- The deepest fall in its price history was 25.4% (Mar 9, 2026 to Jun 25, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.1% | — |
| 2025 | +74.2% | +74.55% |
| 2024 | +35.0% | +35.45% |
| 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 |
|---|---|---|
| 2026 (to date) | $0.1900 | |
| 2025 | $0.3600 | +80.0% |
| 2024 | $0.2000 |
What's inside
As of Aug 31, 2026, the fund held 57 securities; the ten largest made up 64.75% of assets.
| Holding | Weight | |
|---|---|---|
| PALANTIR TECHNOLOGIES INC. | 10.80% | |
| RTX CORPORATION | 9.31% | |
| GENERAL DYNAMICS CORPORATION | 8.59% | |
| LOCKHEED MARTIN CORPORATION | 8.34% | |
| Northrop Grumman Corporation | 7.71% | |
| BAE SYSTEMS PLC | 4.62% | |
| Rheinmetall Aktiengesellschaft | 4.04% | |
| HANWHA AEROSPACE CO., LTD. | 3.81% | |
| L3HARRIS TECHNOLOGIES, INC. | 3.80% | |
| THALES SA | 3.72% | |
| SAAB Aktiebolag | 3.58% | |
| LEONARDO - SOCIETA PER AZIONI | 3.54% | |
| ELBIT SYSTEMS LTD | 2.84% | |
| LEIDOS HOLDINGS, INC. | 2.56% | |
| KONGSBERG GRUPPEN ASA | 2.05% |
By country
United States 64.66%United Kingdom 6.25%South Korea 6.23%Germany 5.3%France 4.74%By asset type
Stocks 99.93%RA 1.31%By sector
Sectors of the companies held, for the 48.6% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $208.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.31%, +6.02%, -11.33%.
How it works
SHLD is an index fund. It aims to match the Global X Defense Tech Index, before fees, and keeps at least 80% of net assets in the index's securities. To qualify, a company must earn at least 50% of its revenue from cybersecurity, defense technology such as AI and surveillance, or military hardware such as drones, munitions, radar and satellites. As of January 31, 2026, new members needed a market value of at least $200 million and average daily trading of at least $2 million. The index had 49 members on that date.
Members are weighted by free-float market value, meaning the value of shares the public can trade, so larger companies get larger weights. Each is capped at 8% when the index refreshes its members and weights twice a year. Weights can drift in between. Palantir Technologies made up 10.8% of the fund as of August 31, 2026, and the ten largest holdings made up about 65%.
The fund holds stocks directly and held no derivatives as of August 31, 2026. Foreign holdings trade in local currencies, so a stronger dollar can shrink their value for US investors. The fund may lend up to a third of its assets for extra income. Global X Management Company, the fund's adviser, also owns the index, which the prospectus flags as a potential conflict of interest.
What it really costs
- SHLD charges 0.5% a year, versus an average of 0.39% for the similar funds below (6th of 8, cheapest first).
- 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 |
|---|---|---|---|---|
| SHLD | $51 | $160 | $280 | $628 |
In a retirement portfolio
SHLD is a concentrated bet on one industry: its ten largest holdings were about 65% of assets as of August 31, 2026, and it fell 25.4% in 2026.
SHLD could add a focused stake in defense companies, whose results the prospectus ties to government budgets and geopolitical tensions. It launched in September 2023, so it has no record in the 2008, 2020 or 2022 downturns. Its weakest full calendar year was still a 35.45% gain, in 2024, according to its prospectus. Its deepest drop came later: 25.4% from March 9 to June 25, 2026, and it had not regained that peak as of October 27, 2026. Anyone who sold shares to cover spending during that stretch would have sold well below the peak. The yield (income paid over the past year as a share of the price) was 0.68% as of October 27, 2026, paid twice a year. The 0.50% expense ratio is above the 0.39% peer average.
Past results don't predict the future, and a retirement plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting defense stocks beyond the US: about a third of assets sat in firms like BAE Systems and Rheinmetall as of August 31, 2026.
- Those who want Palantir Technologies, the largest holding, alongside contractors like RTX, General Dynamics and Lockheed Martin in one index fund.
- Long-term holders who can sit through swings like the 25.4% drop between March and June 2026 without needing to sell shares.
Look elsewhere if
- Cost-focused investors: the 0.50% expense ratio tops the 0.39% peer average; ITA charges 0.40%, while XAR and NATO charge 0.35%.
- Income seekers: the yield was 0.68% as of October 27, 2026, with payments only twice a year.
- Anyone wanting diversification: results depend on defense budgets, and the ten largest holdings were about 65% of assets as of August 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SHLD this fund | — | 0.5% | $7.24B | -6.9% | +36.9% |
| PPA Invesco Aerospace & Defense ETF | 40% | 0.57% | $8.26B | -1.3% | +26.1% |
| MISL First Trust Indxx Aerospace & Defense ETF | 37% | 0.6% | $801.9M | -5.2% | +23.9% |
| NATO Themes Transatlantic Defense ETF | 35% | 0.35% | $100.7M | -7.3% | — |
| ITA iShares U.S. Aerospace & Defense ETF | 30% | 0.4% | $14.44B | -0.3% | +24.8% |
| ROKT SPDR S&P Kensho Final Frontiers ETF | 25% | 0.45% | $248.4M | +28.0% | +40.5% |
| GCAD Gabelli Commercial Aerospace and Defense ETF | 24% | 0% | $43.7M | +6.2% | +29.7% |
| XAR SPDR S&P Aerospace & Defense ETF | 22% | 0.35% | $6.47B | -10.5% | +26.6% |
Questions investors ask
What does SHLD invest in?
SHLD invests in defense contractors and defense-technology companies by tracking the Global X Defense Tech Index. Companies must earn at least half their revenue from cybersecurity, defense technology or military systems and hardware. As of August 31, 2026, its largest holdings were Palantir Technologies (10.8%), RTX (9.3%), General Dynamics (8.6%), Lockheed Martin (8.3%) and Northrop Grumman (7.7%). About 65% of assets were in US companies. Most of the rest was in the UK, South Korea, Germany and France.
What's the difference between SHLD and PPA?
SHLD costs less and has done better over three years, but it lagged over one year. It charges 0.50% a year, compared with 0.57% for Invesco Aerospace & Defense ETF (PPA), and about 40% of their holdings overlap. As of October 27, 2026, SHLD returned 36.9% a year over three years against 26.1% for PPA. Over one year, SHLD lost 6.9% while PPA lost 1.3%. iShares U.S. Aerospace & Defense ETF (ITA), at 0.40%, is also worth comparing.
Does SHLD pay a dividend?
Yes, but the payout is small. SHLD pays dividends twice a year. Over the 12 months to October 27, 2026, it paid $0.43 per share, a yield of 0.68%. The payments come from dividends paid by the companies it owns, minus fund expenses. Price changes, not income, have driven nearly all of its returns, so it may not suit someone who relies on steady cash from investments.
What is SHLD's expense ratio?
SHLD's expense ratio, the yearly fee taken from fund assets, is 0.50%, according to its prospectus filed March 27, 2026. The SEC's standard example assumes $10,000 invested and a 5% yearly return. On that basis, total costs would be about $51 after one year, $280 after five years and $628 after ten. The average for similar defense funds is 0.39%, and SHLD ranks sixth-lowest in cost among eight.
How has SHLD performed since launch?
Strongly at first, then less well. According to its prospectus, SHLD returned 35.45% in 2024 and 74.55% in 2025. That works out to an average of 52.57% a year from its September 2023 launch through December 31, 2025. It then fell 25.4% between March 9 and June 25, 2026. It had not regained that peak as of October 27, 2026, when its one-year return was a loss of 6.9%. Past results don't predict future returns.