What Is SHLD? Global X Defense Tech ETF
Short answer
SHLD is the Global X Defense Tech ETF, a thematic fund that holds the leading pure-play defense technology companies globally, including Palantir, RTX, Lockheed Martin, Northrop Grumman, and Leidos alongside non-U.S. names like Rheinmetall, BAE Systems, and Thales. It rode the 2025 surge in global defense spending to roughly $6.8 billion in assets by early 2026. Unlike ITA, PPA, and XAR, which focus almost entirely on U.S. aerospace and defense, SHLD blends American primes with a meaningful international defense allocation. It carries a 0.50% expense ratio.
SHLD is issued by Global X and tracks Global X Defense Tech Index. It charges a 0.50% expense ratio, holds approximately ~$6.8 billion in assets under management, yields about ~0.8%, and launched in September 11, 2023.
What is SHLD?
SHLD is the Global X Defense Tech ETF, a thematic fund that holds the leading pure-play defense technology companies globally, including Palantir, RTX, Lockheed Martin, Northrop Grumman, and Leidos alongside non-U.S. names like Rheinmetall, BAE Systems, and Thales. It rode the 2025 surge in global defense spending to roughly $6.8 billion in assets by early 2026. Unlike ITA, PPA, and XAR, which focus almost entirely on U.S. aerospace and defense, SHLD blends American primes with a meaningful international defense allocation. It carries a 0.50% expense ratio.
SHLD is issued by Global X and tracks Global X Defense Tech Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
SHLD holdings: what's actually inside
SHLD is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of SHLD | |
|---|---|---|---|---|
| 1 | LMT | Lockheed Martin Corporation | ~8.4% | |
| 2 | RTX | RTX Corporation | ~7.8% | |
| 3 | GD | General Dynamics Corporation | ~7.7% | |
| 4 | NOC | Northrop Grumman Corporation | ~7.5% | |
| 5 | PLTR | Palantir Technologies Inc. | ~7.0% | |
| 6 | RHM | Rheinmetall AG | ~5.8% | |
| 7 | BA.L | BAE Systems plc | ~4.9% | |
| 8 | LHX | L3Harris Technologies, Inc. | ~4.7% | |
| 9 | LDO.MI | Leonardo S.p.A. | ~4.4% | |
| 10 | HO.PA | Thales S.A. | ~4.3% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
Themes SHLD is commonly used to express
ETFs are passive bundles; thematic baskets in Walnut let you concentrate within them. If you hold SHLD as a core position, these are the themes you might layer on as satellites.
The bottom line on SHLD
SHLD offers concentrated, globally diversified exposure to the defense technology theme, blending U.S. primes with European and Asian contractors that most domestic defense funds exclude. Its higher 0.50% fee and international tilt distinguish it from cheaper U.S.-only peers like ITA, PPA, and XAR.
More on SHLD
Whether SHLD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is SHLD a buy?
SHLD yields ~0.8% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see SHLD dividend: yield and schedule.
Build a portfolio around SHLD with Walnut
Use SHLD as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is SHLD?
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SHLD is the Global X Defense Tech ETF, a thematic fund issued by Global X that tracks the Global X Defense Tech Index. It holds roughly 50 of the largest pure-play defense technology companies worldwide, combining U.S. primes such as Lockheed Martin and RTX with international names like Rheinmetall, BAE Systems, and Hanwha Aerospace.
What is SHLD's expense ratio?
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SHLD charges a total expense ratio of 0.50% per year, or about $50 annually on a $10,000 position. That is higher than broad-market index funds and somewhat above U.S.-focused defense ETFs, reflecting its thematic, globally diversified mandate.
SHLD vs ITA vs PPA
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All three target the defense and aerospace theme, but ITA (iShares U.S. Aerospace & Defense) and PPA (Invesco Aerospace & Defense) hold almost entirely U.S. companies and include commercial aerospace exposure. SHLD is narrower on the defense-technology theme and adds a meaningful allocation to non-U.S. contractors such as Rheinmetall, BAE Systems, and Thales, with a higher 0.50% fee. Walnut is informational, not investment advice.
What does SHLD hold?
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SHLD's largest positions include Lockheed Martin, RTX, General Dynamics, Northrop Grumman, Palantir Technologies, and L3Harris in the U.S., plus international defense names such as Rheinmetall, BAE Systems, Leonardo, and Thales. The broader basket also holds services contractors like Leidos and Booz Allen Hamilton, with the top 10 making up roughly 60% of the fund.
Does SHLD pay a dividend?
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Yes, SHLD pays a small dividend, with a yield of roughly 0.8% as of early 2026. Income is modest because many of its holdings are growth-oriented defense technology companies that reinvest earnings rather than distribute large dividends.
Is SHLD a good investment?
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That depends on your goals, risk tolerance, and view on global defense spending. SHLD is concentrated in a single theme and carries a higher 0.50% fee, so it is more specialized and volatile than a broad-market fund. Walnut is informational, not investment advice.
Why does SHLD hold so many non-U.S. companies?
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Unlike U.S.-only defense funds, SHLD's index screens for pure-play defense technology companies globally, so it deliberately includes European and Asian contractors such as Rheinmetall, BAE Systems, Leonardo, Thales, and Hanwha Aerospace. This gives it exposure to rising European and Asian defense budgets that domestic ETFs miss, but also adds currency and foreign-market risk.
How large is SHLD and when did it launch?
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SHLD launched on September 11, 2023, and grew quickly as global defense spending accelerated through 2025. By early 2026 it managed roughly $6.8 billion in assets, making it one of the larger and faster-growing defense-themed ETFs available to investors.
How do I compare SHLD to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. SHLD's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against Global X's fund page or your broker before investing.