MISL vs. SHLD

Last updated Jun 24, 2026

MISL (First Trust Indxx Aerospace & Defense ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, MISL returned 23.02% vs 4.03% for SHLD. A 0.74 correlation means they provide meaningful diversification when combined. MISL charges 0.60%/yr vs 0.50%/yr for SHLD.

Performance

MISL vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Indxx Aerospace & Defense ETF (MISL) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MISL achieves a 3.94% return, which is significantly higher than SHLD's -6.53% return.

MISL

• 1D: -0.22%
• 1M: -4.53%
• YTD: 3.94%
• 6M: 1.02%
• 1Y: 23.02%
• 3Y*: 25.99%
• 5Y*: —
• 10Y*: —

SHLD

• 1D: -0.05%
• 1M: -7.05%
• YTD: -6.53%
• 6M: -8.73%
• 1Y: 4.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MISL vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MISL First Trust Indxx Aerospace & Defense ETF	3.94%	41.24%	20.48%	14.35%
SHLD Global X Defense Tech ETF	-6.53%	74.16%	35.03%	12.89%

Correlation

The correlation between MISL and SHLD is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.74

The correlation between MISL and SHLD has been stable across timeframes, ranging from 0.74 to 0.79 - a consistent structural relationship.

MISL vs. SHLD - Sectors Allocation Comparison

Sectors	MISL	SHLD
Industrials	82.2%	87.8%
Technology	17.8%	12.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

MISL vs. SHLD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MISL

MISL Risk / Return Rank: 28
MISL Sharpe Ratio Rank: 28
MISL Sortino Ratio Rank: 29
MISL Omega Ratio Rank: 26
MISL Calmar Ratio Rank: 31
MISL Martin Ratio Rank: 28

SHLD

SHLD Risk / Return Rank: 11
SHLD Sharpe Ratio Rank: 11
SHLD Sortino Ratio Rank: 11
SHLD Omega Ratio Rank: 10
SHLD Calmar Ratio Rank: 10
SHLD Martin Ratio Rank: 11

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MISL vs. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) and Global X Defense Tech ETF (SHLD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MISL	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	0.97	0.16	+0.81
Sortino ratio: Return per unit of downside risk	1.51	0.41	+1.10
Omega ratio: Gain probability vs. loss probability	1.17	1.05	+0.12
Calmar ratio: Return relative to maximum drawdown	1.47	0.18	+1.29
Martin ratio: Return relative to average drawdown	3.65	0.46	+3.19

MISL vs. SHLD - Sharpe Ratio Comparison

The current MISL Sharpe Ratio is 0.97, which is higher than the SHLD Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of MISL and SHLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MISL vs. SHLD - Drawdown Comparison

The maximum MISL drawdown since its inception was -17.91%, smaller than the maximum SHLD drawdown of -22.38%. Use the drawdown chart below to compare losses from any high point for MISL and SHLD.

Drawdown Indicators

	MISL	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-17.91%	-22.38%	+4.47%
Max Drawdown (1Y) Largest decline over 1 year	-15.69%	-22.38%	+6.69%
Max Drawdown (3Y) Largest decline over 3 years	-17.91%	—	—
Current Drawdown Current decline from peak	-12.81%	-22.38%	+9.57%
Average Drawdown Average peak-to-trough decline	-3.58%	-3.49%	-0.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.32%	8.69%	-2.37%

Volatility

MISL vs. SHLD - Volatility Comparison

First Trust Indxx Aerospace & Defense ETF (MISL) has a higher volatility of 10.32% compared to Global X Defense Tech ETF (SHLD) at 9.04%. This indicates that MISL's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MISL	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.32%	9.04%	+1.28%
Volatility (6M) Calculated over the trailing 6-month period	20.31%	20.19%	+0.12%
Volatility (1Y) Calculated over the trailing 1-year period	23.90%	24.71%	-0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.50%	21.33%	-1.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	21.33%	-1.83%

MISL vs. SHLD - Expense Ratio Comparison

MISL has a 0.60% expense ratio, which is higher than SHLD's 0.50% expense ratio.

Dividends

MISL vs. SHLD - Dividend Comparison

MISL's dividend yield for the trailing twelve months is around 0.37%, less than SHLD's 0.59% yield.

Position	TTM	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	0.37%	0.40%	0.74%	0.63%	0.08%
SHLD Global X Defense Tech ETF	0.59%	0.55%	0.53%	0.26%	0.00%

Frequently Asked Questions

Can I hold both MISL and SHLD in my portfolio?

MISL and SHLD have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MISL or SHLD?

MISL has higher volatility (10.32%) compared to SHLD (9.04%). In terms of maximum drawdown, MISL dropped -17.91% vs SHLD's -22.38%.

Which ETF is better, MISL or SHLD?

On 1-year performance, MISL leads with 23.02% vs 4.03% for SHLD. On fees, SHLD is cheaper at 0.50% per year. On volatility, SHLD has been the lower-risk option at 9.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MISL or SHLD?

Over the 1-year period, MISL has performed better with a 23.02% return vs 4.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MISL or SHLD?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.60% for MISL.

Which ETF pays a higher dividend yield, MISL or SHLD?

SHLD has the higher dividend yield at 0.59%, compared with 0.37% for MISL.

What is the main difference between MISL and SHLD?

MISL is categorized as Industrials Equities, while SHLD is Aerospace & Defense. MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: First Trust and Global X. Their fees differ too: 0.60% for MISL and 0.50% for SHLD.

Which has better risk-adjusted returns?

MISL currently has the higher Sharpe Ratio (0.97 vs 0.16), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.