How do I invest in Global X Defense Tech ETF?

You can invest in the Global X Defense Tech ETF (SHLD) by purchasing shares through any brokerage account that offers access to U.S. stock exchanges.

Is SHLD a good investment?

Global X Defense Tech ETF may be a good long-term investment if you believe defense spending will remain strong and want diversified exposure to global defense and cybersecurity firms.

How to Buy Global X Defense Tech ETF (SHLD)

By Tony Dong – Updated Feb 26, 2026 at 11:05 AM EST | Fact-checked by Frank Bass

Key Points

Global X Defense Tech ETF has outperformed the market with geopolitical tensions driving defense stock gains.
Global X Defense Tech ETF's unique index includes cybersecurity and intelligence firms, not just traditional defense contractors.
Investors must assess high valuations against Global X Defense Tech ETF's unique global defense exposure.

Global X Defense Tech ETF (SHLD +0.61%) debuted in September 2023, almost uncanny timing for an exchange-traded fund (ETF) focused on defense stocks.

Just a year earlier, Russia had invaded Ukraine. Then, only weeks after this defense tech ETF launched, Hamas militants attacked Israel on October 7, 2023, triggering a full-scale war. Fast forward to 2025, and that conflict has escalated to include Iran, with the U.S. now conducting surgical strikes on nuclear infrastructure and Israel targeting high-ranking regime members.

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Against this backdrop of geopolitical instability, this Global X ETF has delivered performance that not only surpassed the S&P 500 but also outpaced several rival aerospace and defense ETFs.

But what exactly is driving that outperformance, and more importantly, is this ETF right for your portfolio? Here’s what you need to know before investing.

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What is the Global X Defense Tech ETF?

Global X Defense Tech ETF (SHLD) is a thematic ETF that passively tracks the in-house Global X Defense Tech index. Unlike most ETFs that license benchmarks from major index providers, this ETF’s underlying index is proprietary, developed directly by Global X ETFs.

The ETF currently holds 42 large-cap companies that span a broad spectrum of modern defense capabilities. What sets this ETF apart from traditional aerospace and defense ETFs are three key distinctions:

It places less emphasis on pure-play aerospace manufacturers and component distributors.
The fund looks beyond U.S.-based contractors, with significant exposure to European defense firms.
It broadens the scope to include nontraditional defense players such as cybersecurity and intelligence-focused companies.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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How to buy Global X Defense Tech ETF (SHLD)

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker "SHLD" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Should you invest in Global X Defense Tech ETF?

Global X Defense Tech ETF is best suited for investors looking to tactically overweight defense stocks based on the view that geopolitical conflicts will continue to escalate, and defense budgets will remain elevated or rise beyond already anticipated levels.

As of July 2025, this ETF's portfolio appeared potentially overvalued, with the average holding trading at 27.49 times earnings and 4.85 times book value.

That said, for those comfortable with these stretched valuations, this Global X ETF offers a unique alternative to traditional aerospace and defense ETFs.

It provides greater European exposure, a lower weighting to aerospace manufacturers, and allocations to cybersecurity and intelligence-related firms.

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Does Global X Defense Tech ETF (SHLD) pay a dividend?

Yes, Global X Defense Tech ETF pays a dividend. In mid-2025, it had a 30-day SEC yield of 0.3% and distributes income on a semiannual basis.

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What is Global X Defense Tech ETF's expense ratio?

Global X Defense Tech ETF carries an expense ratio of 0.50%. While higher than broad-market index ETFs, this is reasonable for a niche thematic strategy. It translates to about $50 annually in fee drag on every $10,000 invested. These fees are deducted at the fund level and reduce overall performance, rather than being billed directly to you.

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Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

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Historical performance of Global X Defense Tech ETF (SHLD)

Data source: Global X ETFs (as of June 30, 2025).
	1-Year	Since Inception
Net Asset Value	82.43%	64.01%
Market Price	82.89%	64.47%

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The bottom line

Global X Defense Tech ETF is unique and timely for investors seeking targeted exposure to the modern defense sector. With holdings spanning traditional contractors, European manufacturers, and cybersecurity firms, it goes well beyond the typical U.S.-centric aerospace ETF. Its strong performance since launch reflects rising global conflict and investor appetite for defense spending plays. While valuations are on the high side and income is minimal, Global X Defense Tech ETF remains a viable tactical tool for those betting on elevated geopolitical risk.

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Investing in Global X Defense Tech ETF (SHLD) FAQs

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Tony Dong has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies, Leidos, Palantir Technologies, and RTX. The Motley Fool recommends Lockheed Martin and Rheinmetall. The Motley Fool has a disclosure policy.

How to Buy Global X Defense Tech ETF (SHLD)

Key Points

What is the Global X Defense Tech ETF?

Exchange-Traded Fund (ETF)

How to buy Global X Defense Tech ETF (SHLD)

Should you invest in Global X Defense Tech ETF?

Does Global X Defense Tech ETF (SHLD) pay a dividend?

What is Global X Defense Tech ETF's expense ratio?

Expense Ratio

Historical performance of Global X Defense Tech ETF (SHLD)

The bottom line

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