First Trust Indxx Aerospace & Defense ETF (MISL)

MISL: Don't Fear The Decline, Think Long-Term

Despite geopolitical tensions, defense stocks like those in the First Trust Indxx Aerospace & Defense ETF (MISL) have declined due to fears of budget cuts under President Trump's DOGE initiative. The proposed $895 billion defense budget for 2025 contradicts market fears, suggesting defense spending cuts are unlikely given strong congressional resistance and vested state interests. MISL's recent underperformance and high volatility are likely temporary, with a long-term bullish outlook based on sustained defense spending and the potential for faster AUM growth compared to peers.