NATO members' expected $5B weapon purchases by 2025-end should fuel momentum in defense ETFs like SHLD and ITA.
A $93 million US weapon sale to India puts the spotlight on defense stocks like LMT and, by extension, fuels momentum for defense ETFs like SHLD.
Launched on May 1, 2006, the iShares U.S. Aerospace & Defense ETF (ITA) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Aerospace & Defense segment of the equity market.
Consumers are feeling the pinch. Hence, one can bet on high-growth sectors.
Defense ETFs like XAR and ITA slipped in November, but long-term prospects remain strong amid surging global defense spending.
Fed rate cuts, trade truce & holiday cheer should boost markets! Some ETFs to buy now include SPHB, XLY, XSW, ITA & IWM.
iShares U.S. Aerospace & Defense ETF is upgraded to Strong Buy, driven by record demand and robust sector profitability. ITA's top holdings, including GE and RTX, report exceptional earnings growth, raised guidance, and expanding backlogs, supporting continued upside momentum. The fund boasts strong dividend growth, high liquidity, and an A+ momentum factor, with a quant score of 4.33 indicating further upside potential.
NATO's new commitment to boost defense spending to 5% of GDP by 2035 will drive significant growth for defense contractors and the ITA ETF. iShares U.S. Aerospace & Defense ETF offers diversified exposure to top U.S. aerospace and defense stocks, with strong momentum and liquidity, but current valuations are lofty. Geopolitical tensions and rising global conflicts reinforce the bullish case for defense stocks, making the sector potentially recession-proof.
In the midst of many companies' mid-2025 earnings reports, names from the financials and tech sectors have stood out, as have firms from the aerospace and defense industry. It's common for investors to respond to earnings info by buying or selling shares of individual companies, but those bullish on these broader categories may find that a targeted exchange-traded fund (ETF) is an easy way to gain exposure to a larger segment of the market that is primed for success.
With nearly 40% of S&P 500 companies having reported their Q2 earnings, the overall picture is one of continued strength and steady improvement. Sector ETFs like VFH, XLK, XLY and ITA are in sweet spots.
VFH, XLK, XLY and ITA ETFs may benefit as strong Q2 earnings and rising Q3 estimates boost sector optimism.
Aerospace and defense companies are demonstrating strong earnings growth and a positive outlook. ITA ETF has delivered impressive returns: 35% year-to-date and 41% over the past year. Top holdings in ITA have reported record profitability and raised full-year forecasts.