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Can Aerospace & Defense ETFs Keep Soaring?

Neena Mishra
HPT vs. HCP: Which Stock Is the Better Value Option?

 

Aerospace & defense stocks have been doing really well since Trump’s election as he promised a big boost in defense spending.

Trump administration’s budget proposal for fiscal 2019 includes spending more than $470 billion over the next two years for weapons and military research, up 20% from the Obama administration’s final plan in fiscal 2017.

The sentiment for aerospace & defense stocks improves with rising geopolitical tensions. And geopolitical risks continue to rise with North Korea’s sabre rattling and tensions in the Middle East.

Further, many other countries—developed as well as developing—have increased their defense spending over the past few years with rising geopolitical risks.

Commercial side of the business is also doing well, with improving global growth.

Most aerospace & defense companies reported excellent earnings for Q4 and have seen continued positive momentum in earnings estimates. Aerospace & defense ETFs have significantly outperformed the broader market over the past year.

To learn more about the iShares U.S. Aerospace & Defense ETF (ITA), the SPDR S&P Aerospace & Defense ETF (XAR) and the PowerShares Aerospace & Defense Portfolio (PPA) and their performance versus the broader market, please watch the short video above.

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ISHARS-US AEROS (ITA): ETF Research Reports
 
SPDR-SP AER&DEF (XAR): ETF Research Reports
 
PWRSH-AERO&DEF (PPA): ETF Research Reports
 
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