Defense stocks could go ballistic in coming days.
For one, Europe increasing its defense efforts with the Ukraine-Russia war. Two, with President Trump pounding away at the Houthis and potentially Iran, defense stocks could see big upside.
“Our brave Warfighters are right now carrying out aerial attacks on the terrorists’ bases, leaders, and missile defenses to protect American shipping, air, and naval assets, and to restore Navigational Freedom,” Trump said in a social media post. “No terrorist force will stop American commercial and naval vessels from freely sailing the Waterways of the World.”
He also warned Iran to stop supporting the Houthis and said he would hold the country “fully accountable” for the actions of its proxy.
That could easily get defense stocks fired up.
And while we can always trade defense stocks, such as Lockheed Martin, Northrop Grumman, Kratos Defense, HEICO, and General Dynamics, why not diversify at a lower cost with exchange-traded funds (ETF), such as:
SPDR S&P Aerospace & Defense ETF (SYM: XAR)
The SPDR S&P Aerospace & Defense ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Aerospace & Defense Select Industry Index. The XAR ETF has an expense ratio of 0.35%.
iShares U.S. Aerospace & Defense ETF (SYM: ITA)
The iShares US Aerospace & Defense ETF invests in stocks in the domestic aerospace and defense sector. These stocks can include companies that manufacture both commercial and military aircraft as well as other types of defense-related equipment. The ITA ETF has an expense ratio of 0.40% at the moment.
Power Shares Aerospace & Defense ETF (SYM: PPA)
The Invesco Aerospace & Defense ETF tracks a market-cap-weighted index of US-listed stocks involved in the defense, military, homeland security and space industries. The PPA ETF has an expense ratio of 0.57%.
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