Defense ETF ITA outperforms airline ETF JETS in 2026 amid government spending and fuel cost pressures

The U.S. Global Jets ETF (JETS) and the iShares U.S. Aerospace & Defense ETF (ITA) represent different sectors within aviation, with JETS focused on passenger airlines and related services, and ITA on defense contractors paid by government contracts. In 2026, ITA has outperformed JETS with an 8.97% gain versus 5.2%, driven by increased U.S. defense spending and multi-year contract backlogs. JETS faces challenges from low consumer sentiment and high jet fuel prices, which impact airline demand. Over longer periods, ITA has shown much stronger returns, reflecting the stability of defense spending compared to the cyclical nature of airlines. Investors should consider ITA for exposure to defense budget growth and JETS for a tactical bet on consumer recovery and lower fuel costs.