SPDR S&P Aerospace & Defense ETF (ARCA: XAR)

에 대한 최신 뉴스 SPDR S&P Aerospace & Defense ETF (ARCA:XAR)

SPDR S&P Aerospace & Defense ETF

Industrials

Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index. In addition, in seeking to track the Index, the Fund may invest in equity securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Adviser).

Woodward Inc

Howmet Aerospace Inc.

Aerovironment Inc

Heico Corp.

Raytheon Technologies Corp

Curtiss-wright Corp

Transdigm Group Inc.

General Dynamics Corp.

Lockheed Martin Corp

Kratos Defense & Security Solutions, Inc.

General Electric Co.

Boeing Co

Northrop Grumman Corp.

Huntington Ingalls Industries Inc.

Rocket Lab Usa Inc

Bwx Technologies, Inc.

Archer Aviation Inc-A

Axon Enterprise Inc

Lockheed Martin Corporation

News

Global

Movers

SHLD

수요일에 이스라엘과 하마스가 가자에서의 휴전에 대해 구두 합의한 후 방산 주식들이 약간 하락했다. 무슨 일이 있었나: 하마스는 수요일에 여러 인질 석방이 포함된 가자에서의 휴전 초안에 대해 수용했다고 다수의 보도가 전했다.

가자 지구 평화 협상으로 방산 주식 하락, 주요 지수는 상승: 무슨 일이?

Lockheed Martin Poland F35

Government

General

지정학적 긴장이 고조되면서 정부의 무기 주문이 증가해 향후 3년 동안 글로벌 항공우주 및 방산 기업들의 현금 흐름이 급증할 것으로 예상된다.

록히드 마틴 등 방산 기업들, 지정학적 긴장 고조에 $520억의 기록적인 현금 흐름 달성: 보도

Spirit Aerosystems- Company

European Aeronautic Defence And Space Unsponsored

EADSY

iShares Dow Jones US Aerospace & Defense Index Fund

제트기 동체의 주요 공급업체인 스피릿 에어로시스템즈 홀딩스(NYSE:SPR)는 캔자스주 위치타 공장에서 직원을 400~450명 감원한다고 밝혔다. 이번 감원은 스피릿의 최대 고객인 보잉(NYSE:BA)의 생산 감소에 대한 대응이다.

스피릿 에어로시스템즈, 보잉의 생산 곤란과 연관하여 수백 명을 정리해고할 예정

The space economy is seeing an influx of <a href="https://www.benzinga.com/general/space">investment and innovation</a>.
Intuitive Machines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) expects to release its fourth-quarter 2024 earnings on March 24 before the market opens. The robust top-line expansion of its lunar payload services and NASA contracts make it a prime stock in the growing space exploration space as well as the aerospace and defense sector.
Intuitive Machines&#8217; forward 12-month price-to-sales (P/S) of 3.17X is above the peer group average of 2.32x, reflecting a premium valuation. This implies that investors are paying a premium price relative to anticipated sales growth compared to peers.
Also Read: <a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44253929/space-etfs-rocked-by-intuitive-machines-lunar-mishap-is-there-a-safer-bet">Space ETFs Rocked By Intuitive Machines&#8217; Lunar Mishap — Is There A Safer Bet?</a>
That said, Intuitive Machines is a volatile stock, as understood from its high Beta of 1.31, per CNBC. Beta of 1 and above means the stock tends to move more reactive to developments than the market in in general. For interested investors seeking exposure to the sector but without much of the involved risks, ETFs provide diversified exposure to the sectors. 
This article examines the central themes regarding Intuitive Machines and identifies pertinent <a href="https://www.benzinga.com/etfs">ETFs offering exposure to the space economy</a> and the aerospace and defense sector.
The business of Intutive Machines is based on lunar missions and sophisticated space technologies. The contracts of the company with NASA, such as being part of the IM-1, IM-2, and IM-3 lunar payload missions, reflect its promise in the commercial space segment.
<h2 class="wp-block-heading">Pertinent ETFs</h2>
<ul>
<li>Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>): Tracks the S-Network Space Index, including space-related companies including Intuitive Machines. It&#8217;s expense ratio is 0.94%.</li>
</ul>
<ul>
<li>ARK Space Exploration &amp; Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#BATS">ARKX</a>): Although it does not carry LUNR in its holdings, this fund actively invests in the companies pioneering space exploration and innovation, like Iridium Satellite (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRDM#NASDAQ">IRDM</a>) and Rocket Lab Usa Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>). It carries an expense ratio of 0.75%.</li>
</ul>
<ul>
<li>iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>): Follows the Dow Jones U.S. Aerospace &amp; Defense Index, and carries an expense ratio of 0.4%. ITA&#8217;s portfolio is significantly skewed toward well-known aerospace and defense companies, in contrast to space-focused funds that contain speculative stocks like LUNR, which has NASA and Near Space Network contracts. More than 40% of the fund&#8217;s total assets are held by its top three holdings, which are GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), and Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>). ITA has been able to perform well during market turbulence thanks to this defensive allocation.</li>
</ul>
<ul>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>): Follows the S&amp;P Aerospace &amp; Defense Select Industry Index, and has an expense ratio of 0.35%. Since LUNR has been growing its aerospace and defense contract business, there is a possibility of XAR including LUNR in its portfolio in one of its coming reallocations.</li>
</ul>
With the space economy growing, Intuitive Machines&#8217; growth highlights the growing overlap of space exploration, defense, and cutting-edge technology. 
With LUNR&#8217;s participation in lunar missions and advanced innovations, the firm is an appealing investment opportunity for investors. Nonetheless, due to its high valuation, investors would need to evaluate their risk tolerance and look at diversified ETF approaches that offer exposure to the general space and defense sectors. Through the use of ETFs, investors are able to ride this dynamic and fast-growing sector while controlling risk.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/03/44424030/exclusive-volatility-will-likely-be-hanging-around-trueshares-ceo-on-rising-demand-for-buffer">EXCLUSIVE: &#8216;Volatility Will Likely Be Hanging Around&#8217; — TrueShares CEO On Rising Demand For Buffered ETFs</a></li>
</ul>
Image: Shutterstock

Sector ETFs

SPACE

ETFs

ARKX

IBBQ

IRDM

LUNR

RKLB

ROKT

These 4 ETFs Provide Smart Exposure To Intuitive Machines, The New Space Economy

Investor interest in global defense stocks has surged following President Donald Trump&#8216;s decision to temporarily suspend U.S. military aid to Ukraine. As tensions continue to rise, defense companies may witness increased demand for their products and services in the geopolitical landscape.
What Happened: This development occurs amid ongoing support for Ukraine from European leaders, with British Prime Minister Keir Starmer pledging a £2.26 billion loan for military supplies.
Meanwhile, Trump aims to <a href="https://www.benzinga.com/news/global/25/03/44101854/trump-reportedly-halts-ukraine-military-aid-pressures-zelenskyy-to-seek-peace-with-russia-amid-growing-rift">pressure</a> Ukrainian President Volodymyr Zelenskyy into peace negotiations with Russia. According to the White House, the freeze will remain in place until Trump determines that Ukraine has made a meaningful effort toward diplomatic talks with Moscow.
As the aid remains frozen, defense stocks from around the world come to fore amid the conflicts. Here is a list of global defense exchange-traded funds which investors could consider in order to participate in the upside.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Global Defense ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>)</td>
<td>3.10%</td>
<td>16.00%</td>
</tr>
<tr>
<td>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>)</td>
<td>-0.71%</td>
<td>15.24%</td>
</tr>
<tr>
<td>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>)</td>
<td>-3.21%</td>
<td>14.89%</td>
</tr>
<tr>
<td>Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>)</td>
<td>22.01%</td>
<td>43.29%</td>
</tr>
<tr>
<td>ARK Space Exploration &amp; Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#BATS">ARKX</a>)</td>
<td>-3.91%</td>
<td>27.01%</td>
</tr>
<tr>
<td>Direxion Daily Aerospace &amp; Defense Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFEN#NYSE">DFEN</a>)</td>
<td>5.95%</td>
<td>15.35%</td>
</tr>
<tr>
<td>SPDR S&amp;P Kensho Future Security ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FITE#NYSE">FITE</a>)</td>
<td>-4.36%</td>
<td>13.38%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/25/03/44135699/big-tech-slide-an-opportunity-to-buy-amid-selloff-analyst-highlights-bigger-fundamental-concerns-amid-the-possibility-of-technical-bounce-back">Big Tech Slide An Opportunity To Buy Amid Selloff? Analyst Highlights Bigger Fundamental Concerns Amid The Possibility Of Technical Bounce Back</a>
Why It Matters: Following a contentious argument in the White House, Trump blasted the Ukrainian leader's claim that peace remains "very, very far away," calling it "the worst statement" and warning, "America will not put up with it for much longer!&#8221; in a Truth Social post.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="894" height="466" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/05063630/Trump-Truth-Social-Post-On-Zelen.png" alt="" class="wp-image-809935" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/05063630/Trump-Truth-Social-Post-On-Zelen.png 894w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/05063630/Trump-Truth-Social-Post-On-Zelen-300x156.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/05063630/Trump-Truth-Social-Post-On-Zelen-768x400.png 768w" sizes="(max-width: 894px) 100vw, 894px" /></figure>
A White House official, speaking anonymously <a href="https://apnews.com/article/trump-zelenskyy-russia-ukraine-a15a459c9a3a393d040478ebbe250a9e">to</a> the Associated Press, characterized the move as a strategic &#8220;pause and review&#8221; of assistance. The official emphasized that the administration wants to ensure aid is &#8220;contributing to a solution&#8221; rather than prolonging the conflict.
Meanwhile, here is a list of some U.S. defense stocks to watch.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>U.S. Defense Stocks</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>General Dynamics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>)</td>
<td>-3.91%</td>
<td>-8.33%</td>
</tr>
<tr>
<td>Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>)</td>
<td>-0.89%</td>
<td>1.22%</td>
</tr>
<tr>
<td>Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>)</td>
<td>-6.93%</td>
<td>3.90%</td>
</tr>
<tr>
<td>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)</td>
<td>-7.55%</td>
<td>-21.00%</td>
</tr>
<tr>
<td>RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>)</td>
<td>10.94%</td>
<td>42.90%</td>
</tr>
<tr>
<td>General Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>)</td>
<td>17.90%</td>
<td>57.55%</td>
</tr>
<tr>
<td>TransDigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>)</td>
<td>7.63%</td>
<td>16.36%</td>
</tr>
<tr>
<td>Howmet Aerospace Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>)</td>
<td>14.65%</td>
<td>86.90%</td>
</tr>
<tr>
<td>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>)</td>
<td>-11.44%</td>
<td>67.65%</td>
</tr>
<tr>
<td>L3Harris Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>)</td>
<td>-0.14%</td>
<td>-3.16%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. SPY rose 0.60% to $580.30 and QQQ was up 0.70% to $499.04, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Tuesday, the SPY declined 1.18% to $576.86, and the QQQ dropped 0.30% to $495.55.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/03/44135177/trump-seeks-to-end-chips-act-who-stands-to-lose-heres-a-list-of-beneficiaries-that-could-be-affected">Trump Seeks To End CHIPS Act: Who Stands To Lose? Here&#8217;s A List Of Beneficiaries That Could Be Affected</a></li>
</ul>
Photo courtesy: Shutterstock

Equities

Market Summary

Politics

Markets

AXON

DFEN

FITE

Defense Stocks In Focus As Trump Freezes Ukraine Military Aid: Here's A List Of Top Global Defense ETFs To Watch

While European defense stocks soar, <a href="https://benzinga.com/topic/aerospace-defense-stocks" target="_blank" rel="noreferrer noopener">their American counterparts</a> are stuck in the trenches. 
As <a href="https://www.ft.com/content/1ea4a5d6-c8a9-4a87-8e3a-9a7c084d1a77">reported</a> by the Financial Times, President Donald Trump&#8216;s renewed calls for Europe to shoulder its own security burden paired with plans to trim Pentagon spending have clipped the wings of U.S. defense giants.
<h2 class="wp-block-heading">Europe&#8217;s Defense Boom, America&#8217;s Bust</h2>
Shares of Germany&#8217;s Rheinmetall have skyrocketed nearly 40% since Trump's return to the White House, while South Korea's Hanwha Aerospace has surged more than 70%, fueled by NATO rearmament deals. 
Meanwhile, American stalwarts like Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) are down 13% and 10.8%, respectively, as fears of shrinking Pentagon contracts weigh on investor sentiment.
Read Also: <a href="https://www.benzinga.com/tech/25/02/43899444/trump-moves-to-impose-tariffs-on-countries-with-digital-taxes-defending-apple-amazon-meta-google-and-other-us-tech-giants">Trump Moves To Impose Tariffs On Countries With Digital Taxes, Defending Apple, Amazon, Meta, Google And Other US Tech Giants</a>
<h2 class="wp-block-heading">Winners &amp; Losers Stateside</h2>
Among the top U.S. players, Lockheed Martin (-13%) and Northrop Grumman (-10.8%) have taken the biggest hits, while Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) stands out as the lone gainer, up 2.5% since Trump took office. 
RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) (-0.25%) has held relatively steady, but General Dynamics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) (-9.3%) and L3Harris Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>) (-10.3%) have also faced notable declines.
<h2 class="wp-block-heading">Investor Implications: Pivot Or Persevere?</h2>
For investors, the message is clear: follow the money and it&#8217;s heading across the Atlantic.
With European defense budgets ballooning and the US tightening its belt, ETFs like iShares MSCI Europe ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEUR#NYSE">IEUR</a>) and SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) might offer better short-term returns than their U.S.-heavy counterparts.
Unless U.S. defense contractors can secure new international contracts or navigate domestic budget cuts, their stocks may remain stuck in neutral while European rivals continue their ascent.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/02/43828189/4-etfs-in-the-crosshairs-as-defense-cuts-loom-is-it-time-to-play-offense">4 ETFs In The Crosshairs As Defense Cuts Loom — Is It Time To Play Offense?</a></li>
</ul>
Photo: Shutterstock

Long Ideas

Trading Ideas

IEUR

US Defense Stocks Stumble As Trump's Pentagon Cuts Fuel European Surge

The U.S. defense sector is facing fresh uncertainty as the Trump administration sets the foundation for a cost-cutting initiative under the newly established Department of Government Efficiency (DOGE). Despite the <a href="https://www.benzinga.com/news/global/25/02/43787369/us-russian-officials-begin-ukraine-peace-talks-defense-sector-stocks-rise">recent buoyancy</a> in anticipation of peace talks involving the Presidents of the U.S., Russia and Ukraine, stocks of major defense contractors, including Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), and Northrop Grumman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), are staring at near-term risks following the possibility of a defense budget cut. 
While the potential impact is still unfolding, <a href="https://www.benzinga.com/etfs">defense-focused ETFs </a>could be in for a bumpy ride.
ETFs with significant holdings in defense giants may see volatility in the wake of potential budget constraints. Some of the key funds to monitor include:
iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) – Tracks U.S. defense and aerospace companies, including General Dynamics (18.75% exposure) Lockheed Martin (4.98% exposure) and RTX (15.72% exposure). 
SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) – Offers exposure to large and mid-cap defense stocks, with exposure to stocks like Lockheed Martin, General Dynamics and RTX. This ETF offers a more equally weighted approach, which may help balance the losses.
Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) – Holds a diversified mix of defense contractors and related industries. However, Lockheed Martin and RTX hold the top positions, with 7.26% and 7% of the total AUM.
First Trust Indxx Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MISL#NYSE">MISL</a>) – A newer entrant with a focus on companies involved in missile and defense technology. Once again, Lockheed Martin, General Dynamics and RTX hold significant percentage of the total assets.
Also Read: <a href="https://www.benzinga.com/trading-ideas/25/02/43827291/exclusive-will-trumps-tariffs-hurt-or-help-stock-market-59-say-this">EXCLUSIVE: Will Trump&#8217;s Tariffs Hurt Or Help Stock Market? 59% Say This…</a>
Why Defense Stocks Are Under Pressure
The DOGE recently kicked off its review at the Pentagon, aiming to curb waste, fraud, and redundancies. In a post on X, DOGE officials confirmed their commitment to "safely save taxpayer dollars and eliminate waste." 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Great kickoff with <a href="https://twitter.com/DeptofDefense?ref_src=twsrc%5Etfw">@DeptofDefense</a>. Looking forward to working together to safely save taxpayer dollars and eliminate waste, fraud and abuse.
&mdash; Department of Government Efficiency (@DOGE) <a href="https://twitter.com/DOGE/status/1890621621448167497?ref_src=twsrc%5Etfw">February 15, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Defense Secretary Pete Hegseth echoed this sentiment, emphasizing the need to streamline operations and optimize spending, as reported by CBS News.
This initiative has raised concerns for major defense contractors, many of whom rely heavily on government contracts. Among the top players at risk are Lockheed Martin which has retreated almost 10% so far this year, RTX , General Dynamics, with a loss of 6.35% year-to-date, and Northrop Grumman, which has lost 6.5% so far this year.
With over $200 billion in annual federal contracts flowing into the sector, any cuts could significantly affect companies that derive nearly half their revenue from government spending, according to a report by Saxo Bank.
While U.S. defense spending may come under pressure, rising geopolitical tensions and commitments from NATO allies to boost their military budgets could create new opportunities for defense firms.
Fine-Tuning Is Key
For investors holding defense-heavy ETFs, now may be a time for caution but not necessarily panic. Watching how DOGE's review unfolds, tracking upcoming federal budgets, following the peace talks among Russia, Ukraine and U.S., and keeping an eye on global defense spending trends will be important. Diversification within ETFs could also help mitigate sector-specific risks.
As budget talks heat up, defense ETFs may experience short-term turbulence, but the longer-term picture will depend on how much of the spending shift is domestic versus international.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/02/43818555/trade-war-redux-a-bumpy-ride-ahead-for-these-etfs-after-trumps-tariff-move-on-auto-pharma-chip-imports">Trade War Redux: These ETFs Due For Bumpy Ride Thanks To Trump Tariffs On Auto, Pharma, Chip Imports</a></li>
</ul>
Photo: Shutterstock

MISL

4 ETFs In The Crosshairs As Defense Cuts Loom — Is It Time To Play Offense?

Huntington Ingalls Industries Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) shares are trading lower after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/g43524381/hii-reports-fourth-quarter-and-full-year-2024-results" rel="noreferrer noopener">fourth-quarter&nbsp;FY24&nbsp;results</a>.
Sales and service revenue increased&nbsp;5.4%&nbsp;year-over-year to&nbsp;$3.00 billion, missing the&nbsp;consensus of&nbsp;$3.05 billion.
Ingalls Shipbuilding&nbsp;$736 million&nbsp;(-8.0%&nbsp;Y/Y), Newport News Shipbuilding&nbsp;$1.59 billion&nbsp;(-4.6%&nbsp;Y/Y), and Mission Technologies&nbsp;$713 million&nbsp;(-4.3%&nbsp;Y/Y).
Operating income decreased 64.7% Y/Y to $110 million, and the margin contracted by 616 bps to 3.7%. Segment operating income was $103 million (-68.8% Y/Y), and the margin was 3.4%, down 696 bps Y/Y.
EPS of&nbsp;$3.15, down 54.3%&nbsp;Y/Y, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of&nbsp;$3.31</a>.&nbsp;
Operating cash flow plunged to $393 million&nbsp;in 2024 and free cash flow&nbsp;to $40 million, compared to&nbsp;$970 million&nbsp;and&nbsp;$692 million, respectively, in 2023.
New contract awards for 2024&nbsp;were&nbsp;$12.1&nbsp;billion, with a total backlog of around&nbsp;$48.7&nbsp;billion&nbsp;as of December 31, 2024.
Chris Kastner, president and CEO said, &#8220;We continue to make progress on ships put under contract pre-COVID, and are working diligently with our customers to put over $50 billion of new work under contract. Mission Technologies continued its strong track record of top line growth and margin expansion and secured an impressive $12 billion in total future contract value during 2024.&#8221;
FY25&nbsp;Outlook: Huntington Ingalls Industries sees sales of around $11.80 billion &#8211; $12.20 billion (vs. consensus of $12.10 billion), with expected Shipbuilding revenue of&nbsp;$8.9 billion &#8211; $9.1&nbsp;billion and the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">corresponding&nbsp;operating margin of&nbsp;5.5% &#8211; 6.5%</a>.
Huntington&nbsp;Ingalls sees Mission&nbsp;Technologies&#8217;&nbsp;revenue of&nbsp;$2.9 billion &#8211; $3.1 billion, with an operating margin of&nbsp;4.0% &#8211; 4.5%&nbsp;and&nbsp;EBITDA margin of&nbsp;8.0% &#8211; 8.5%.
The company expects FY25 free cash flow of&nbsp;$300 million &#8211; $500 million.
Investors can gain exposure to the stock via&nbsp;The Advisors&#8217; Inner Circle Fund III Strategas Global Policy Opportunities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAGP#NYSE">SAGP</a>).
Price Action: HII shares are down 16.5% at $163.23 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell" target="_blank" rel="noreferrer noopener">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
</ul>
Image via Shutterstock.

Earnings

Mid Cap

Guidance

The Advisors' Inner Circle Fund III Strategas Global Policy Opportunities ETF

SAGP

Huntington Ingalls Sinks On Q4 Earnings Miss, Margins & Cash Flow Take A Hit

Defense <a href="https://www.benzinga.com/news/global/25/01/43013312/defense-stocks-fall-on-gaza-ceasefire-while-broader-market-rallies-whats-going-on">stocks dipped on Wednesday</a> following reports of a verbal ceasefire agreement between Israel and Hamas, taking several related ETFs along.
ETFs like SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>), iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>), and Global X Funds Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>) were slightly down as the defense sector lost its appeal to investors.
Nonetheless, the pullback was short-lived, as all three ETFs opened higher and retained momentum on Thursday. Moreover, neither the dip nor the rally was sharp. There can be many possibilities behind this. For starters, the fundamental strength of defense stocks are undeniable. 
Secondly, the market might still be taking time to process that a war of such scale can end so abruptly. Thirdly, another major longstanding war that also draws resources from the U.S. is ongoing between Russia and Ukraine. Thus, despite a short-term withdrawal of a few investors from defense ETFs, the longer-term story seems constructive.
Moreover, the ceasefire agreement does not mean that contracts will stop coming for defense companies. Raytheon Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), one of the largest holdings of all the aforementioned ETFs, <a href="https://www.benzinga.com/25/01/43034421/whats-going-on-with-rtx-corporation-stock-today">announced a $529 million contract</a> to supply a Patriot air&nbsp;and missile defense system to the Netherlands. 
See Also: <a href="https://www.benzinga.com/25/01/43031336/raytheon-takes-flight-while-boeing-need-more-than-hype-analyst">Raytheon Takes Flight, Boeing Needs More Than Hype: Analyst</a>
The SPDR S&amp;P Aerospace &amp; Defense ETF&#8217;s exposure to commercial aerospace alongside defense provides some insulation against geopolitical shifts. 
Meanwhile, Global X Funds Global X Defense Tech ETF&#8217;s beta of 0.4% means it is less reactive to market volatility.
The War Effect On Defense Stocks
Historically, periods of conflict have been a boon for defense stocks. The Middle East war saw heightened government spending on military contracts, propelling the Global X Defense Tech ETF to a 35% gain over the past year, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. 
Companies in this sector see increased demand during conflicts due to the surge in need for defense systems, technology and equipment.
While the ceasefire signals a de-escalation in the Middle East conflict, defense stocks and ETFs are unlikely to lose their long-term optimism. Geopolitical risks remain a persistent concern, and governments worldwide continue to prioritize defense budgets.
Long-term defense investors are likely to restock on defense ETFs at discounted valuations, taking advantage of the uncertainty. Also, integration of advanced technologies like AI and cybersecurity in defense systems are bound to push demand higher.
See Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43039348/are-utilities-the-new-tech-why-entergy-nisource-vistra-are-jpmorgans-top-picks-for-">Are Utilities The New Tech? Why Entergy, NiSource, Vistra Are JPMorgan's Top Picks For 2025</a></li>
</ul>
Photo: Shutterstock

Specialty ETFs

Defense ETFs Stabilize After Ceasefire Reports: Why 3 ETFs Have Long-Term Potential

Defense stocks are moving slightly lower Wednesday after Israel and Hamas verbally agreed on a <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">ceasefire in Gaza</a>.
What Happened: Hamas accepted a draft agreement on Wednesday for a ceasefire in Gaza that includes the release of several hostages, according to <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">multiple reports</a>. 
The agreement follows months of negotiations and paves the way for a potential end to the ongoing war in the Middle East that began about 15 months ago. The verbal agreement also comes just days before President-elect Donald Trump&#8217;s inauguration. 
&#8220;We have a deal for the hostages in the Middle East. They will be released shortly. Thank you!&#8221; Trump&nbsp;said in a post on Truth Social.
The deal reportedly includes a six-week ceasefire and the release of 33 Israeli hostages in exchange for the release of Palestinian prisoners. Israel still needs to ratify the deal, but a vote is expected by Thursday. 
Related Link: <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">Israel, Hamas Agree To Cease-Fire Deal With Hostage Exchange: What You Need To Know</a>
Defense stocks including Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) moved lower as the ceasefire reports surfaced despite a strong session from broader indices. The Global X Funds Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>) and the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) also pulled back from highs on the news. 
At the time of writing, Lockheed Martin shares were down about 0.7%, while Northrop Grumman and RTX shares were down about 0.8%. It&#8217;s worth noting that the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 1.77% at last check.
Defense stocks have benefitted from the ongoing war in the Middle East with the Global X Funds Defense ETF having gained more than 35% over the past year, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. Defense stocks tend to rally in periods of elevated conflict given their heavy reliance on government contracts. 
Energy stocks including BP P.L.C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>), Chevron Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) also pulled back slightly on the ceasefire news, but bounced back pretty quickly. 
The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) hit new 52-week highs on Wednesday on continued momentum from last week after the U.S. announced its most extensive sanctions on Russian oil exports to date.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/01/42948649/goldman-sachs-warns-of-90-oil-risk-trump-may-not-ease-sanctions-once-he-takes-office">Oil Could Hit $90, Goldman Sachs Says: &#8216;Trump May Not Ease Sanctions&#8217; On Russia</a></li>
</ul>
Photo: courtesy of Lockheed Martin.

Defense Stocks Fall On Gaza Ceasefire While Broader Market Rallies: What's Going On?

The space industry, once a distant frontier, is now accessible to investors thanks to advances in technology and a surge in commercial interest. 
The sector presents substantial upside potential, highlighted by aerospace and defense company Rocket Lab USA Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>), with its stock surging approximately 15% on Jan. 3. And, with growing anticipation for SpaceX&#8217;s Falcon 9 launch in 2025, interest in space-focused ETFs is gaining momentum. This is evident from the ARK Space Exploration &amp; Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#NYSE">ARKX</a>), which hit a 52-week high on Jan. 6.
See Also: <a href="https://www.benzinga.com/general/space/25/01/42755343/spacex-hits-new-milestone-in-2024-with-134-launches">SpaceX Hits New Milestone In 2024 With 134 Launches</a>
Here are some ETFs in the space race that are in focus as the above trends dominate the center stage.
ARK Space Exploration &amp; Innovation ETF, which invests 10.08% of its assets in Rocket Lab, focuses on companies involved in space exploration and innovation. This actively managed fund allocates 80% of its assets to this theme. With an expense ratio of 0.75%, ARKX has benefited from an overall optimism in the space sector. The fund's price has grown more than 17% in the past year.
iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) currently allocates 1.89% of its holdings to Rocket Lab. Moreover, among its top holdings in this area are stocks like Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) and GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>). The expense ratio of 0.40% makes it one of the cheaper ETFs to consider.
SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) charges only 0.35% expense ratio in exchange for a portfolio of stocks like Rocket Lab (5.34%), Boeing (4.45%), RTX (4.22%), and AeroVironment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVAV#NASDAQ">AVAV</a>) (4.59%). It allocates 100% of its assets to the aerospace and defense sector.
The space sector, although brimming with potential, does not come without risks. If we reflect on last year, the sector's volatility is evident in the Virgin Galactic fiasco, in which the stock price plummeted 99.3% from its 2021 highs. However, space ETFs allow investors to approach their investments in this sector in a balanced way.
See Next:
<a href="https://www.benzinga.com/etfs/emerging-market-etfs/25/01/42851198/riot-cryptomining-success-spurs-investor-interest-with-defiances-new-etf">Riot&#8217;s Crypto Mining Success Spurs Investor Interest With Defiance&#8217;s New ETF</a>
Photo: Shutterstock

AVAV

Rocket Lab Surge Sparks Renewed Interest In Space-Focused ETFs: 3 Funds In Focus

The Pentagon announced Monday the latest arms package for Ukraine totaling $725 million, the largest since a $1 billion package in April. The arms package will include the second shipment of antipersonnel mines that President Joe Biden<a href="https://www.benzinga.com/markets/commodities/24/11/41873103/trump-reportedly-urges-russian-president-to-deescalate-war-with-ukraine-heres-how-crude-oil-wti-futures-are-reacting"> authorized.</a>
According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-12-02/us-to-announce-725-million-arms-package-for-ukraine-including-mines?sref=TBDibEcD">report</a>, the latest arms package will also include air defense missiles and Javelin, TOW and AT-4 anti-armor weapons, counter-drone munitions, 155mm artillery shells and "equipment to protect critical national infrastructure," according to the Department of Defense.
Read More: <a href="https://www.benzinga.com/etfs/new-etfs/24/12/42270723/new-conservative-etf-aims-to-invest-in-sp-500-without-dei-were-going-to-deliver-that-mandate">New Conservative ETF Aims To Invest In S&amp;P 500 Without DEI: &#8216;We&#8217;re Going To Deliver That Mandate&#8217;</a>
Last week, the White House asked Congress to provide an additional $24 billion in security assistance which it is seeking to designate as "emergency spending." The Biden administration requested $8 billion for the Ukraine Security Assistance Initiative to finance weapons contracts with U.S. defense contractors with the remaining $16 billion to be used for replenishing U.S. weapons stocks.
Major General Patrick Ryder, a Pentagon spokesman, told reporters "We understand the urgent situation in Ukraine and the president's direction and will continue to do everything we can to ensure that Ukraine is getting the aid that it needs."
Why It Matters: Government and military contracting companies, including General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), may benefit from the latest arms package to Ukraine. Specifically, the Javelin weapon system is produced by the Javelin Joint Venture, a partnership between Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) subsidiary Raytheon.  
Investors can gain exposure to the broader aerospace and defense industry through ETFs that invest in U.S. government and military contractors including the iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>). 
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42273676/walmart-target-bath-body-works-stand-out-as-black-friday-winners-analysts">Walmart, Target, Bath &amp; Body Works Stand Out As Black Friday Winners: Analysts</a></li>
</ul>
Photo: Shutterstock

US Announces $725 Million Arms Package For Ukraine

President-elect Donald Trump's proposed Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is raising questions about the future of U.S. defense contractors <a href="https://www.benzinga.com/news/global/24/11/41927289/trump-appoints-elon-musk-and-vivek-ramaswamy-to-lead-doge-targeting-bureaucracy-and-65-trillion-federal-spending-we-will-not-go-gently">and government IT firms. </a>
Could the defense budget flatten—or even fall? And who stands to gain in this new sector shake up?
<h3 class="wp-block-heading">DOGE Puts Defense Budget Under Pressure</h3>
Trump's plan to restructure federal agencies and reduce wasteful spending through DOGE is a bold move, and its potential ripple effects are hard to ignore—especially for defense and government IT companies. 
With the Department of Defense (DoD) being one of the largest slices of federal spending, investors are understandably focused on what's next for defense stocks in a DOGE-driven world.
On one hand, Trump's campaign has consistently expressed support for strengthening the U.S. military. 
On the other, it's hard to make sweeping government cuts without touching the $877 billion defense budget, which accounts for 13% of federal spending as of 2023.
Read Also: <a href="https://www.benzinga.com/24/11/41965420/department-of-government-efficiency-led-by-elon-musk-and-vivek-ramaswamy-opens-x-account-with-username-doge">Elon Musk, Vivek Ramaswamy-Led Department Of Government Efficiency Opens Account On X</a>
<h3 class="wp-block-heading">Defense Spending At All-Time Highs Spells Risks</h3>
Historically, defense spending runs in decades-long cycles. Investment in the sector experiences periods of growth followed by downturns, and we may be nearing the peak of the current cycle, according to Goldman Sachs analyst Noah Poponak.
 &#8220;The defense budget is at an all-time high, which creates difficult comparisons and challenging base effects,&#8221; the analyst said in a note published Friday. 
<h3 class="wp-block-heading">Key Risks For Defense Stocks</h3>
<ol>
<li>Peak Spending: The defense budget is hovering at historical highs, making future growth difficult.</li>
<li>Geopolitical Shifts: If major conflicts ease, defense spending could decline.</li>
<li>Government Debt: U.S. debt-to-GDP ratios are near record levels, increasing pressure to curb federal spending.</li>
</ol>
Margins in the defense industry are already under pressure due to Pentagon efforts to shift risks onto contractors. Fixed pricing on long-term contracts, for example, has eroded unit economics. 
At the same time, defense stocks – as tracked by the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) – are trading at valuations above historical averages, leaving them vulnerable to a "de-rating" if the budget flattens or falls.
&#8220;It is difficult to embark on any large government spending reduction effort without touching defense, and there are potentially enough inefficiencies within the defense budget to reduce its total level without necessarily reducing military readiness or capability,&#8221; Poponak said. 
The investment bank maintains a cautious stance on the defense sector, issuing Sell ratings for Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), L3Harris Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>), and Huntington Ingalls Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>).
<h3 class="wp-block-heading">Government IT: Winners In The Efficiency Game?</h3>
While defense hardware could take a hit, government IT firms might find themselves potentially on the winning side of DOGE. 
The sector has been outperforming traditional defense industries in revenue growth, driven by a market share shift toward advanced technologies like artificial intelligence, data analytics, and cybersecurity.
<h3 class="wp-block-heading">Why IT Could Shine:</h3>
<ul>
<li>Tech-Driven Efficiency: DOGE's focus on cutting waste could emphasize the adoption of technologies that streamline government operations.</li>
<li>Advanced Capabilities: Firms offering cutting-edge solutions may be seen as key enablers of government efficiency.</li>
<li>Resilient Demand: Even with DoD cuts, IT spending for Operations &amp; Maintenance and national security could remain strong.</li>
</ul>
Goldman Sachs believes that companies like Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) and Leidos Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LDOS#NYSE">LDOS</a>) are well-positioned to benefit.
On the flip side, SAIC Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAIC#NYSE">SAIC</a>) faces challenges due to slower growth and tougher competition, earning it a Sell rating from Goldman Sachs.
The bottom line is that Investors should prepare for a sector shakeup, as the creation of DOGE could mark a significant shift in federal spending priorities.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/11/42006982/activist-investor-nelson-peltz-says-he-was-a-matchmaker-for-elon-musk-with-donald-trump">Activist Investor Nelson Peltz Says He Was &#8216;A Matchmaker&#8217; For Elon Musk With Donald Trump</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Large Cap

Regulations

Contracts

Economics

Tech

LDOS

SAIC

Trump's DOGE Plan: Goldman Sachs Says Defense Stocks Face Risks, IT Firms Could Win

Invesco has unveiled a new series of thematic exchange-traded funds (ETFs) that focus on artificial intelligence, cybersecurity, and defense sectors. These funds aim to leverage emerging trends within these industries.
What Happened: The newly introduced ETFs, named Invesco Artificial Intelligence Enablers, Cybersecurity, and Defence Innovation Ucits, are based on benchmarks crafted by Kensho, a division of S&amp;P Global Indices. Kensho utilizes natural language processing to pinpoint companies with significant involvement in each theme, categorizing them into &#8220;core&#8221; and &#8220;non-core&#8221; groups, Financial Times<a href="https://www.ft.com/content/476d3e81-cbd2-4484-8fb5-4a074dcaa97c"> reported</a> on Thursday.
As per Invesco, core companies generate a substantial portion of their revenue from products and services aligned with these themes, while non-core companies provide essential inputs without focusing on end products. The AI enablers strategy targets firms advancing AI technology and infrastructure, whereas the cybersecurity ETF invests in companies protecting enterprises from unauthorized electronic access. The defense fund provides exposure to companies developing advanced weapons and defensive systems
Here are a few ETFs and how they fared in the past year, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>:
Artificial Intelligence
<ul>
<li>iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITW#NYSE">ITW</a>) increased 45.40% over the year with holdings like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).</li>
<li>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>), with similar exposure, rose 43.17%.</li>
<li>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTX#NYSE">FTX</a>), which gives exposure to Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), increased 45.59%.</li>
</ul>
Cybersecurity
<ul>
<li>First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>) increased 38.08%. Its holdings include Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>).</li>
<li>Amplify Cybersecurity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HACK#NYSE">HACK</a>) rose 39.57%. Along with Broadcom, and Cisco, the ETF&#8217;s major holdings also include Palo Alto Networks, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), and General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>).</li>
<li>iShares Cybersecurity &amp; Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHAK#NYSE">IHAK</a>) with exposure to companies such as SentinelOne, Inc. Class A (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>), and Fortinet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), rose 33.95%.</li>
</ul>
Defense
<ul>
<li>iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) with exposure to companies such as General Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) and RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) increased 33.86%.</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) with exposure to companies such as Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) increased by 43.05%.</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) was up by 34.86%. It gives exposure to Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXN#NASDAQ">AXN</a>), L3Harris Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>).</li>
</ul>
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41794596/bitcoin-ethereum-dogecoin-slingshot-to-the-moon-after-trump-victory-but-sharp-correction-m?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Slingshot To The Moon After Trump Victory But &#8216;Sharp&#8217; Correction Might Be In Store: Analyst Views BTC Between $80-90K By End Of Year</a>
Why It Matters: The launch of these ETFs by Invesco comes at a time when thematic investing is<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41713236/donald-trumps-return-to-white-house-could-propel-these-etfs-to-new-highs"> gaining traction among investors</a> looking to capitalize on specific industry trends. The focus on artificial intelligence, cybersecurity, and defense aligns with growing global interest in these areas, driven by technological advancements and increasing security concerns.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/41734887/cathie-woods-latest-shake-up-dumps-palantir-and-jack-dorseys-block-along-with-tesla-buys-amazon-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Cathie Wood&#8217;s Latest Shake-up: Dumps Palantir And Jack Dorsey&#8217;s Block Along With Tesla, Buys Amazon And Meta</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Invesco

New ETFs

AAPL

AMZN

AVGO

CIBR

CRWD

CSCO

FTEC

FTNT

HACK

IHAK

MSFT

NFLX

PANW

Invesco Launches New ETFs Targeting AI, Cybersecurity, And Defense. Here's How Some Of Their Peers Have Performed In The Past Year

BofA Securities analyst Ronald J. Epstein upgraded L3Harris Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>) to Buy from Neutral and raised the <a target="_blank" href="https://www.benzinga.com/quote/LHX/analyst-ratings" rel="noreferrer noopener">price target to $300 from $240</a>.
The analyst writes that L3Harris introduced its transformation initiative, &#8220;LHX Next,&#8221; which he initially viewed with cautious optimism.
However, recent results have reinforced our positive outlook, showing that the streamlined, focused LHX is now better positioned to fulfill its commitments and exceed expectations, says the analyst.
Moreover, Ronald says that the missile and munitions industry consensus is clear: demand is relentless, with a promising outlook extending over the next five years.
LHX is well-positioned to capitalize on this trend, standing out as one of the few companies with solid rocket motor (SRM) production capabilities.
LHX&#8217;s recent wins, including contracts for the Next-Gen Interceptor (NGI) and as the primary provider for the 1st and 3rd stage propulsion on the Glide Phase Interceptor (GPI), underscore the strength and reliability of its products, adds the analyst.
Notably, last week, the company announced a&nbsp;strategic partnership&nbsp;with Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>)&nbsp;to combine Palantir&#8217;s Artificial Intelligence Platform with L3Harris&#8217; sensor and <a target="_blank" href="https://www.benzinga.com/news/24/10/41554264/palantir-technologies-stock-reaches-new-52-week-high-whats-going-on" rel="noreferrer noopener">software-defined systems</a>.
The analyst writes that this partnership reflects a forward-thinking and strategic move by LHX, leveraging Palantir&#8217;s enterprise AI-driven data integration to enhance cost efficiency, gain greater supply chain visibility, and enable quicker, more informed decisions.
Additionally, the collaboration supports AI-enabled product development, aligning LHX&#8217;s focus on core capabilities with Palantir&#8217;s software expertise—a combination we view as a strong foundation for future growth, adds the analyst.
The analyst adds that the company surpassed its $400 million run-rate savings target for 2024 and now expects to achieve $600 million by year-end, bolstering confidence in its $1 billion savings target.
Consequently, Ronald raised the estimates, with 2026E free cash flow (FCF) now projected at $2.8 billion and potential for additional upside.
Investors can gain exposure to the stock via XAR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) and iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).
Price Action: LHX shares are up 0.57% at $246.81 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41555316/l3harris-poised-for-2025-growth-analysts-highlight-q3-earnings-beat-solid-orders-an" target="_blank" rel="noreferrer noopener">L3Harris Poised For 2025 Growth: Analysts Highlight Q3 Earnings Beat, Solid Orders, And Margin Expansion Potential</a></li>
</ul>

Upgrades

Price Target

Analyst Ratings

PLTR

L3Harris And Palantir Collaboration Key To Future Growth, BofA Upgrades Stock

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/10/23/final-trades-eaton-transdigm-and-goldman-sachs.html">Halftime Report Final Trades</a>,&#8221; Jenny Van Leeuwen Harrington of Gilman Hill Asset Management, LLC named Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) <a href="https://www.benzinga.com/general/biotech/24/10/41528055/cdc-and-prevention-advisory-panel-backs-expanded-use-of-pfizer-and-mercks-pneumococcal-vaccines">as her final trade</a>.
On Wednesday, the U.S. Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) voted for expanded usage recommendation for Merck &amp; Co Inc's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) and Pfizer's pneumococcal conjugate vaccines. The CDC panel has recommended lowering the pneumococcal vaccination age from 65 to 50 years old.
Liz Young Thomas of SoFi picked SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>).
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Joshua Brown of Ritholtz Wealth Management named Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>).
The company will release its third quarter financial results on Tuesday, Nov. 12. Analysts expect the company to report quarterly earnings at $1.61 per share, down from $1.78 per share in the year-ago period. The company projects to report revenue of $7.8 billion, compared to $6.99 billion a year earlier.
On Thursday, JP Morgan analyst David Karnovsky maintained Live Nation Entertainment with an Overweight and raised the price target from $118 to $137.
Price Action:
<ul>
<li>Pfizer shares fell 0.8% to close at $28.64 during Thursday's session.</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF slipped 0.9% during Thursday's session.</li>
<li>Live Nation Entertainment shares gained 1.5% to close at $116.45 on Thursday.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/10/41528323/jim-cramer-says-hold-on-to-palantir-let-them-walk-it-up-warns-that-travere-therapeutics-is-losing-a">Jim Cramer Says &#8216;Hold On&#8217; To Palantir, &#8216;Let Them Walk It Up&#8217;; Warns That Travere Therapeutics Is Losing A &#8216;Ton Of Money&#8217;</a></li>
</ul>
Image: Shutterstock

Pfizer, Live Nation Entertainment And More On CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Pfizer, Live Nation Entertainment, SPDR S&P Aerospace & Defense ETF

The Israeli military confirmed on Thursday <a href="https://www.benzinga.com/markets/asia/24/10/41385179/hamas-chief-oct-7-mastermind-yahya-sinwar-possibly-dead-idf-conducts-dna-tests-after-gaza-clash">the death of Yahya Sinwar</a>, the top leader of Hamas, with one word: &#8220;Eliminated.&#8221; 
What Happened: Israel Defense Forces killed Sinwar — Israel's most wanted target since the war with Hamas began on Oct. 7 — in a firefight in Gaza.
Sinwar orchestrated an assault that killed about 1,200 people and led to the abduction of over 200 others.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Eliminated: Yahya Sinwar.
&mdash; Israel Defense Forces (@IDF) <a href="https://twitter.com/IDF/status/1846957737487278263?ref_src=twsrc%5Etfw">October 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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In a prepared <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/10/17/statement-from-president-joe-biden-on-the-death-of-yahya-sinwar/">statement</a>, President Joe Biden said the IDF &#8220;relentlessly pursued Hamas's leaders&#8221; with the help of U.S. intelligence.
&#8220;There has rarely been a military campaign like this, with Hamas leaders living and moving through hundreds of miles of tunnels, organized in multiple stories underground, determined to protect themselves with no care for the civilians suffering above ground,&#8221; Biden said. 
&#8220;Today, however, proves once again that no terrorists anywhere in the world can escape justice, no matter how long it takes.&#8221;
Sinwar's body was retrieved after an exchange of fire on Wednesday, according to the <a href="https://www.nytimes.com/live/2024/10/17/world/israel-lebanon-iran-gaza-news?campaign_id=190&amp;emc=edit_ufn_20241017&amp;instance_id=137113&amp;nl=from-the-times&amp;regi_id=136109156&amp;segment_id=180692&amp;user_id=e415429009fa21c5b8b4141c24d72bca">New York Times</a>, citing Israeli authorities. His identity was verified using dental records and fingerprints that matched those on file, Israel Police said. There was no immediate response from Hamas regarding his death.
See Also: <a href="https://www.benzinga.com/news/24/10/41112728/us-boosts-military-presence-in-middle-east-deploys-fighter-squadrons-amid-rising-tensions-with-iran">US Boosts Military Presence In Middle East As Tensions Spike With Iran</a> 
Why It Matters: Sinwar's killing marks a significant development in the yearlong conflict. 
So far, the war in Gaza devastated the region and its people. Despite being only 141 square miles, Gaza is home to over 2 million people. 
Gaza's health ministry reports over 41,000 deaths. Per the Associated Press, Gaza's health ministry <a href="https://apnews.com/article/israel-hamas-war-gaza-health-ministry-health-death-toll-59470820308b31f1faf73c703400b033">doesn't distinguish between civilians and combatants</a>. About 1.9 million Palestinians have been <a href="https://apnews.com/article/israel-palestinians-hamas-war-anniversary-statistics-e61765035c725b3c8d4840e2bab565cd">displaced</a>.
Sinwar&#8217;s death also presents an &#8220;opportunity&#8221; to proceed with negotiations between Israel and Hamas and end the war, Vice President Kamala Harris said, per <a href="https://www.bloomberg.com/news/articles/2024-10-17/harris-says-sinwar-s-death-offers-opportunity-to-end-gaza-war?srnd=phx-latest&amp;sref=TBDibEcD&amp;embedded-checkout=true">Bloomberg</a>. 
Both sides remain deadlocked over key issues. 
Israeli Prime Minister Benjamin Netanyahu addressed the nation and promised the Israeli military would secure the release of all hostages. See below for coverage via CNN.
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<iframe loading="lazy" title="Reporter on what he found interesting from Netanyahu's remarks" width="500" height="281" src="https://www.youtube.com/embed/8hrXuXFzUjA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Defense exchange-traded funds (ETFs) at last check Thursday afternoon, were trending up with the exception of the SPDR S&amp;P Aerospace &amp; Defense ETF:
<ul>
<li>IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) rose 1.8% to $154.70.</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) is up 0.17% to $119.</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) is down 0.29% to $162.77.</li>
</ul>
Oil ETFs: 
<ul>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), was up 0.15% at $72.51.</li>
<li>The VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) was down 0.25% at $286.69.</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/10/41336413/oil-prices-take-largest-plunge-in-over-a-year-as-israel-vows-to-spare-iranian-facilities-energy-stoc">Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities</a></li>
</ul>
Image: Shutterstock.

Israeli Military, With Help Of US Intelligence, 'Relentlessly Pursued' Deceased Hamas Leader

United Nations Security Council members convened for an emergency session Wednesday in New York to address Israel, Lebanon, Iran and whether an all-out war in the <a href="https://www.benzinga.com/topic/middle-east">Middle East is preventable</a>.
What Happened: Israeli Ambassador Danny Danon, in his remarks to the UN Security Council, called Iran&#8217;s missile strike the <a href="https://www.benzinga.com/news/global/24/10/41126038/iran-attacks-israel-with-missiles-middle-east-tensions-escalates-s-p-500-stocks-bitcoin-fall-as-oil">&#8220;largest&#8221; in Israel&#8217;s history</a>. 
&#8220;The council must understand the situation Israel is forced to live in. We are under attack,&#8221; Danon said, citing how holy sites were targeted. 
Israeli defense systems intercepted most of the 200 missiles Tuesday as they prepped for ground operations, the <a href="https://apnews.com/live/israel-lebanon-ground-operation-updates">Associated Press</a> reported.
&#8220;The world watched silently as Iran funded and directed attacks against us for the past year, arming and training their proxies for decades,&#8221; Danon added. &#8220;Now the world must step up. Iran must pay a heavy price for this attack. Anything less is complicity.&#8221;
As of early Wednesday afternoon, the meeting remained in session. See video below.
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<iframe loading="lazy" title="LIVE: UN Security Council meeting on the Middle East" width="500" height="375" src="https://www.youtube.com/embed/1VyjPJclLAI?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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</figure>
See Also: <a href="https://www.benzinga.com/news/24/10/41143156/oil-prices-spike-energy-stocks-jump-after-irans-missile-attack-on-israel-what-investors-need-to-know">Oil Prices Spike, Energy Stocks Jump After Iran&#8217;s Missile Attack On Israel — What Investors Need To Know</a>
<h3 class="wp-block-heading">Bracing For Further Escalation</h3>
The UN meeting is taking place while Israeli troops&nbsp;battle Hezbollah militants&nbsp;inside Lebanon, making good on Israeli Prime Minister Benjamin Netanyahu&#8216;s&nbsp;vow to retaliate, per <a href="https://www.bloomberg.com/news/articles/2024-10-02/israel-vows-retaliation-for-massive-iranian-missile-attack">Bloomberg</a>.
The Israeli army Wednesday suffered at least eight fatalities since the ground operation began, CNN <a href="https://www.cnn.com/world/live-news/israel-iran-missile-attack-middle-east-10-02-24-intl-hnk#cm1rx3x98000e3b6qp2nmm7pn">reported</a> citing Israel Defense Forces. 
Iran launched the attack against Israel following the recent killing of <a href="https://www.benzinga.com/news/24/09/41079860/israel-tightens-grip-hezbollah-leader-hassan-nasrallah-killed">Hezbollah leader Hassan Nasrallah</a>. 
Since its formation in the early 1980s, Hezbollah — which the U.S. considers a terrorist organization — has received substantial support from Tehran, which views the group as an ally in advancing its influence in the Middle East.
The White House promised consequences for Iran's attack on Israel. On Tuesday, President Joe Biden reiterated at the start of a meeting with officials: &#8220;Make no mistake, the United States is fully, fully supportive of Israel.&#8221;
Market Reaction: Following the missile attacks from Iran on Israel, plus Tuesday&#8217;s <a href="https://www.benzinga.com/news/econ-s/24/10/41139919/private-sector-job-gains-outpace-forecasts-in-september-as-us-adds-143-000-jobs">job and economic data</a>, major stock indices dropped. As of early Tuesday afternoon:
<ul>
<li>The S&amp;P 500 was down slightly by 0.08%. </li>
<li>The Dow Jones was down by 0.02%. </li>
<li>The Nasdaq was up by 0.09%. </li>
</ul>
At last check, ETFs that track the indexes were up:
<ul>
<li>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 0.01% at $568.56 Tuesday.</li>
<li>SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) was down slightly at $421.23.</li>
<li>The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the Nasdaq 100, is up 0.22% to $482.33.</li>
</ul>
&#8220;Financial markets have reacted as one would expect to the heightened geopolitical tensions in the Middle East, with a bout of risk aversion sweeping through asset classes in the past 24 hours,&#8221; said Matthew Ryan, head of market strategy and global financial services at Ebury.
Equity markets are trading lower and, in currencies, the safe-havens have outperformed most of their peers, he adds. This includes the U.S. dollar, which remains buoyed following some hawkish <a href="https://www.federalreserve.gov/newsevents/speech/powell20240930a.htm">comments</a> from Federal Reserve Chair Jerome Powell on Monday.
The conflict is also causing broader concerns for inflation and central bank policy. Higher oil prices could undermine the U.S. Federal Reserve&#8217;s efforts to control inflation, potentially delaying future interest rate cuts, per <a href="https://www.timesofisrael.com/stock-markets-slump-oil-jumps-as-iran-attack-sparks-fear-of-all-out-war-in-mideast/" target="_blank" rel="noreferrer noopener">The Times of Israel</a>.
What To Look For: Ryan says investors are &#8220;rightly fearful&#8221; that Israel&#8217;s retaliation could disrupt oil supplies. After all, Iran is the seventh-largest oil producer in the world. 
The price of gold and oil both spiked higher after the attack. The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) was trading slightly higher on the day at $72.13 at last check while the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) is down 0.11% to $245.33 Wednesday. 
&#8220;The wider implication for markets is the rising possibility of a sharp move higher in global oil futures, and another period of elevated energy prices and consumer inflation,&#8221; Ryan says.
The ramifications will not be &#8220;anywhere near as severe&#8221; as those that followed Russia&#8217;s invasion of Ukraine, Ryan adds. &#8220;So far, at least, the moves in markets have been relatively contained.&#8221;
Defense ETFs, as of Wednesday afternoon, were trending up:
<ul>
<li>IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) rose 0.37% to $151.91.</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) is up 0.15% to $116.10. </li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) is up 0.67% to $159.98. </li>
</ul>
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41112728/us-boosts-military-presence-in-middle-east-deploys-fighter-squadrons-amid-rising-tensions-with-iran">US Boosts Military Presence In Middle East As Tensions Spike With Iran</a> </li>
</ul>
Image: Shutterstock.

Broad U.S. Equity ETFs

Commodities

SPDR Dow Jones Industrial Average ETF Trust

Markets Turn Risk-Off As Israel, Iran Clash: Investors 'Rightly Fearful' Of Oil Disruption, Strategist Says

The Biden administration&#8217;s decision to enhance Ukraine's long-range strike capabilities has U.S. <a href="https://www.benzinga.com/topic/russia-ukraine-war">intelligence agencies on high alert.</a> 
What Happened: President Joe Biden &#8220;decided to provide Ukraine with the Joint Standoff Weapon (JSOW) long-range munition,&#8221; according to a White House <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/09/26/statement-from-president-joe-biden-on-u-s-support-for-ukraine/">statement </a>on Thursday. 
But the New York Times <a href="https://www.nytimes.com/2024/09/26/us/politics/us-ukraine-strikes.html?nl=the-morning&amp;regi_id=136109156&amp;segment_id=178988">reports</a> U.S. intelligence agencies are assessing the risks of such a scenario.
Western allies face the potential threat of Russian-led attacks if those long-range missiles are <a href="https://www.benzinga.com/topic/ukraine">aimed at certain targets</a> deep inside Russia.
The discussions were at the center of Ukrainian President Volodymyr Zelenskyy&#8216;s visit to the U.S. this past week in which he met with Biden and Vice President Kamala Harris.
A meeting between Zelenskyy and ex-President Donald Trump is reportedly taking place on Friday in New York.
Ukraine Winter: The Russia-Ukraine war began on Feb. 24, 2022, when Russia launched a full-scale invasion.
Since then, Russia has bombarded critical power infrastructure across Ukraine — the latest attack being on Thursday, per Reuters. Such tactics, considered war crimes, leave Ukraine&#8217;s citizens vulnerable heading into the winter months. 
&#8220;Due to ongoing attacks on civil infrastructure, front-line movements, mass displacements and disruptions of access to essential health-care services, the war's impacts, compounded by winter, can increase the risk of excess cold-related morbidity and mortality,&#8221; according to a Thursday <a href="https://www.who.int/europe/publications/i/item/WHO-EURO-2024-2946-42704-59552">report</a> from the World Health Organization.
Germany agreed to provide a $78 million winter aid package to help Ukraine maintain heat and electricity.
Federal Development Minister Svenja Schulze <a href="https://defence-industry.eu/germany-supports-ukraine-with-arms-and-winter-package/">said</a> Germany&#8217;s support aligns with national interests, as Ukraine&#8217;s defense also protects European security.
"We are supporting Ukraine in its efforts to rebuild a decentralised power supply infrastructure, as Russia will then not be able to destroy it so easily," he added.
Russia&#8217;s invasion affected oil and gas pipeline relations with Germany and Ukraine starting in 2022. This resulted in major <a href="https://www.benzinga.com/news/22/08/28447445/vladimir-putin-is-waging-war-not-just-against-ukraine-but-against-the-west-expert-warns-as-germany-i">disruptions and geopolitical shifts</a>.
See Also: <a href="https://www.benzinga.com/news/24/09/41037745/mike-johnson-lashes-out-over-weapons-factory-tour-snub-cries-election-interference-to-ukraine-presid">Mike Johnson Lashes Out Over Weapons Factory Tour Snub, Cries Election Interference To Ukraine President — Wants Ambassador Fired</a>
Why It Matters: In the U.S., Democrats and Republicans are at odds over whether to provide aid at all to Zelenskyy. 
Harris, the 2024 Democratic presidential nominee, met with Zelenskyy and criticized those suggesting Ukraine should cede territory for peace. Her comments were seen as a veiled jab at <a href="https://www.benzinga.com/government/21/01/19152983/donald-trump-is-the-first-us-president-to-be-impeached-twice">twice-impeached former President</a> Trump, who often <a href="https://apnews.com/article/trump-zelenskyy-ukraine-russia-6e02fc7575a14d9abb64a326ffd0a4a3">derides</a> efforts to help Ukraine.
At a North Carolina event Wednesday, Trump said Ukraine was &#8220;demolished&#8221; and should have conceded to Russian President Vladimir Putin, the <a href="https://apnews.com/article/donald-trump-ukraine-putin-zelenskyy-0f4d539aa73a943474d779716e5fe42a">Associated Press</a> reported. 
The comments come just weeks after a debate with Harris, in which the 2024 Republican nominee refused to say whether he wanted Ukraine <a href="https://www.benzinga.com/news/24/09/40998738/trump-says-ukrainian-president-backs-kamala-harris-for-white-house-zelenskyy-is-the-greatest-salesma">to win the war</a>. 
Price Action: Defense contractors saw gains and losses on Friday.
<ul>
<li>General Dynamics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) is up 0.34% to $301.55</li>
<li>Northrop Grumman Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) rose 034% to $526.08</li>
<li>TransDigm Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>) declined 0.069% to $1,400.08</li>
</ul>
Exchange-traded funds (ETFs) that hold defense stocks trended up:
<ul>
<li>IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) rose 0.52%</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) is up 0.29%</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) is up 0.82%</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41059253/trump-set-to-meet-ukraines-president-amid-growing-kyiv-concerns-over-botched-visit-republicans-were">Trump Set To Meet Ukraine&#8217;s President Amid Growing Kyiv Concerns Over Botched Visit</a></li>
</ul>
Photo: Shutterstock

Ukraine Missile Use Worries US Intelligence About Potential Russia Retaliation, Germany Pledges Winter Aid

A significant Ukrainian drone assault on Russia caused an <a href="https://www.benzinga.com/government/24/09/40888451/russia-to-expand-army-for-third-time-since-war-with-ukraine-began-defense-stocks-rtx-northrop-grumma">earthquake-sized eruption</a> at a major arsenal in the Tver region on Wednesday, forcing citizens in the city of Toropets to evacuate, according to reports from war bloggers and some media.
Unverified video and images on social media showed a huge ball of flame rising into the night sky and numerous explosion detonations tearing across a lake about 240 miles west of Moscow, Reuters reported.
NASA satellites registered intense heat sources coming from an area of about five square miles at the site in the early hours. Earthquake monitoring stations picked up the attack as a small earthquake&nbsp;in the area.
&#8220;The enemy hit an ammunition depot in the area of Toropets,&#8221; said Yuri Podolyaka, a Ukrainian-born, pro-Russian military blogger. &#8220;Everything that can burn is already burning there (and exploding).&#8221;
Read Also: <a href="http://US And Allies Worried Amid Reports Of Russia Potentially Sharing Nuclear Secrets With Iran">US And Allies Worried Amid Reports Of Russia Potentially Sharing Nuclear Secrets With Iran</a>
Ukrainian President Volodymyr Zelenskyy, speaking in his nightly video address, praised the attack without mentioning the target.
&#8220;A very important result was achieved last night on Russian territory and such actions weaken the enemy,&#8221; Zelenskyy said. &#8220;I thank everyone involved. Such precision is truly inspiring.&#8221;
A source in Ukraine&#8217;s SBU state security service told Reuters earlier that the drone attack had destroyed&nbsp;a warehouse storing missiles, guided bombs and artillery ammunition.
Igor Rudenya, governor of the Tver region, said Ukrainian drones had been shot down, a fire had broken out and some residents were being evacuated. He did not say what was burning, Reuters reported.
The size of the main blast shown in the unverified social media video was consistent with 200 to 240 tons of high explosives detonating, said George William Herbert of the Middlebury Institute of International Studies at Monterey in California.
Some war bloggers asked how drones could trigger such large blasts at what was thought to be a highly fortified facility.
Price Action: Defense contractors saw gains and losses by the end of Wednesday&#8217;s trading day.
<ul>
<li>General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) slipped 0.44% to $302.52</li>
<li>Northrop Grumman Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) rose 0.2% to $521.77</li>
<li>TransDigm Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>) declined 0.12% to $1,273.80</li>
</ul>
Exchange-traded funds that hold defense stocks trended up and down.
<ul>
<li>IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) rose 0.06%</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) fell 0.13%</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) declined 0.01%</li>
</ul>
Read Now:
<ul>
<li><a href="http://over-30-months-of-war-zelensky">Russia Launches &#8216;One Of The Heaviest Strikes&#8217; On Ukraine In Over 30 Months Of War: Zelensky</a></li>
</ul>
Photo: Shutterstock

Ukrainian Drone Attack Causes Earth-Rattling Blast In Russia's Tver Region

Morgan Stanley is advising investors to pivot towards defensive stocks as the AI market loses momentum. This recommendation comes after a noticeable decline in semiconductor shares.
What Happened: On Tuesday, Mike Wilson, Morgan Stanley&#8217;s chief U.S. equity strategist, <a href="https://youtu.be/l97udx2X7Ws?feature=shared">told</a> Bloomberg Surveillance that the excitement around AI investments has diminished. 
He noted that the semiconductor sector, including major players like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), has seen significant drops in stock prices.
&#8220;A lot of those stocks have really come off. And that makes sense to me. We just got overcooked on the whole AI theme,&#8221; said Wilson.
Wilson highlighted that semiconductor shares have fallen nearly 7% since Nvidia&#8217;s recent earnings report, with Nvidia itself experiencing a roughly 13% decline. He emphasized that this downturn doesn&#8217;t spell doom for the industry but indicates a longer-term benefit and return.
With the AI rally fading, Wilson suggests that investors should focus on &#8220;quality defensive stocks&#8221; in sectors such as utilities, staples, and healthcare. He believes these areas are well-positioned to perform amid a slowing labor market.
&#8220;With that theme now gone, the market is looking for a new theme. On the growth side, there isn&#8217;t one, so what it does is it hunkers down into defensive, high-quality assets until we get the next thing. Whether that&#8217;s a bad outcome or a positive outcome, they&#8217;re going to hide out in these areas,&#8221; Wilson said.
Investors looking to explore the defense sector may want to consider checking out defense-focused ETFs like Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>), First Trust Indxx Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MISL#NYSE">MISL</a>), SPDR S&amp;P Kensho Future Security ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FITE#NYSE">FITE</a>), iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>), and SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>).
See Also: <a href="https://www.benzinga.com/news/24/09/40815343/not-a-slam-dunk-for-harris-but-the-chances-of-a-trump-victory-have-slipped-investors-markets-adjust?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Not A Slam Dunk For Harris, But The Chances Of A Trump Victory Have Slipped:&#8217; Investors, Markets Adjust Positions After Presidential Debate</a>
Why It Matters: The shift in Morgan Stanley&#8217;s strategy comes <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40701071/market-bull-warns-of-up-to-10-september-pullback-urges-caution-but-stresses-be-read">amid broader market concerns</a>. Last week, Tom Lee, co-founder and head of research at The Fundstrat, warned of a potential 7%-10% market pullback, citing historical trends that make September a challenging month for stocks.
Adding to the cautious sentiment, Bank of America advised <a href="https://www.benzinga.com/markets/equities/24/09/40787329/analyst-says-dont-buy-the-tech-dip-amid-election-policy-uncertainty-advises-focusing-on-these-se">investors to avoid increasing their exposure</a> to the tech sector due to ongoing market volatility and election-related policy uncertainty. This aligns with Morgan Stanley&#8217;s recommendation to pivot towards more stable, defensive sectors.
Moreover, the Federal Reserve&#8217;s recent actions add another layer of complexity. On Wednesday, economists suggested that the Fed has the green light to cut rates, given the inflation rate fell to its lowest point since February 2021. 
However, JPMorgan cautioned that <a href="https://www.benzinga.com/markets/equities/24/09/40700320/jpmorgan-warns-anticipated-rate-cuts-may-not-significantly-boost-stock-markets-fed-will-start-ea">these cuts might not significantly</a> boost stock markets, as they are likely to be reactive to slowing economic growth.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40787302/nvidia-shares-riding-on-huge-ai-tailwind-says-portfolio-strategist-why-expert-says-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia Shares Riding On Huge AI Tailwind, Says Portfolio Strategist: Why Expert Says Stock Will Stay On An Upward Path For Next 2-3 Years</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

NVDA

Morgan Stanley Advises Shift To Defensive Stocks As AI Rally Loses Steam Following Drop In Nvidia And Others: 'We Got Overcooked On The Whole AI Theme'

Looking for broad exposure to the Industrials - Aerospace &amp; Defense segment of the equity market? You should consider the iShares U.S. Aerospace &amp; Defense ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/ita#BATS">ITA</a>), a passively managed exchange traded fund launched on 05/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Aerospace &amp; Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
<h2>Index Details</h2>
The fund is sponsored by Blackrock. It has amassed assets over $6.64 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Aerospace &amp; Defense segment of the equity market. ITA seeks to match the performance of the Dow Jones U.S. Select Aerospace &amp; Defense Index before fees and expenses.
The Dow Jones U.S. Select Aerospace &amp; Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market.
<h2>Costs</h2>
When considering an ETF&#39;s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.84%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.70% of the portfolio.
Looking at individual holdings, Ge Aerospace (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ge#NYSE">GE</a>) accounts for about 18.43% of total assets, followed by Rtx Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rtx#NYSE">RTX</a>) and Boeing (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>).
The top 10 holdings account for about 76.93% of total assets under management.
<h2>Performance and Risk</h2>
Year-to-date, the iShares U.S. Aerospace &amp; Defense ETF return is roughly 15.22% so far, and it&#39;s up approximately 26.94% over the last 12 months (as of 08/29/2024). ITA has traded between $103.16 and $145.30 in this past 52-week period.
The ETF has a beta of 0.97 and standard deviation of 18.55% for the trailing three-year period, making it a medium risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
<h2>Alternatives</h2>
IShares U.S. Aerospace &amp; Defense ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ITA is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&amp;P Aerospace &amp; Defense ETF (ARCA:XAR) tracks S&amp;P Aerospace &amp; Defense Select Industry Index and the Invesco Aerospace &amp; Defense ETF (ARCA:PPA) tracks SPADE Defense Index. SPDR S&amp;P Aerospace &amp; Defense ETF has $2.30 billion in assets, Invesco Aerospace &amp; Defense ETF has $3.76 billion. XAR has an expense ratio of 0.35% and PPA charges 0.58%.
<a href="https://www.zacks.com/stock/news/2328670/should-you-invest-in-the-ishares-u-s-aerospace-defense-etf-ita?cid=CS-BENZ-FT-sector_etf-2328670">To read this article on Zacks.com click here.</a>

Should You Invest in the iShares U.S. Aerospace & Defense ETF?

수요일에 이스라엘과 하마스가 가자에서의 <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">휴전</a>에 대해 구두 합의한 후 방산 주식들이 약간 하락했다.
무슨 일이 있었나: 하마스는 수요일에 여러 인질 석방이 포함된 가자에서의 휴전 초안에 대해 수용했다고 <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">다수의 보도</a>가 전했다.
이 합의는 몇 달 간의 협상 후에 이루어진 것이며, 약 15개월 전에 시작된 중동에서의 전쟁을 잠재적으로 끝낼 수 있는 길을 열어준다. 이 구두 합의는 또한 도널드 트럼프 대통령 당선인의 취임을 불과 며칠 앞두고 이루어졌다.
트럼프는 진실 소셜에 &#8220;우리는 중동의 인질들에 대한 거래를 가지고 있다. 그들은 곧 석방될 것이다. 감사하다!&#8221;라고 게시했다.
이 거래에는 6주간의 휴전과 33명의 이스라엘 인질 석방이 포함되며, 대가로 팔레스타인 수감자들의 석방이 요구된다. 이스라엘은 여전히 이 거래를 비준해야 하지만, 목요일까지 투표가 예상된다.
관련 링크: <a href="https://www.benzinga.com/25/01/43011383/israel-gaza-ceasefire-hostage-exchange">이스라엘과 하마스, 인질 교환이 포함된 휴전 합의: 알아야 할 사항</a>
록히드 마틴(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), 노스롭 그루먼(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) 및 RTX(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>)와 같은 방산 주식은 휴전 보도가 나오면서 하락세를 보였다. 반면, 주요 지수들은 강세를 보이고 있었다. Global X Funds Global X Defense Tech ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>)와 SPDR S&amp;P Aerospace &amp; Defense ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>)도 뉴스에 따라 최고치에서 하락했다.
수요일 록히드 마틴의 주가는 0.091% 하락 마감했고, 노스롭 그루먼은 0.67% 그리고 RTX의 주가는 0.32% 하락 마감했다. 한편, SPDR S&amp;P 50(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)은 1.82% 상승 마감했다.
방산 주식들은 중동에서의 전쟁이 지속됨에 따라 혜택을 보았으며, Global X Funds Defense ETF는 지난 1년 동안 35% 이상 상승한 것으로 나타났다. 방산 주식들은 정부 계약에 대한 의존도가 높기 때문에 갈등이 심화되는 시기에 상승하는 경향이 있다.
BP(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>), 쉐브론(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) 및 코노코필립스(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>)와 같은 에너지 주식들도 휴전 뉴스에 따라 약간 하락했지만, 빠르게 반등했다.
United States Oil Fund(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)는 수요일에 러시아 원유 수출에 대한 가장 광범위한 제재 발표 이후의 지속적인 모멘텀으로 52주 최고가인 $84.58을 기록했다.

다음 읽기:
<ul>
<li><a href="https://www.benzinga.com/25/01/42948649/goldman-sachs-warns-of-90-oil-risk-trump-may-not-ease-sanctions-once-he-takes-office">골드만삭스, 유가가 90달러에 이를 수 있다고 경고: &#8216;트럼프가 취임 후 제재를 완화하지 않을 수 있다&#8217;</a></li>
</ul>
사진: Lockheed Martin 제공.
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지정학적 긴장이 고조되면서 정부의 무기 주문이 증가해 향후 3년 동안 글로벌 항공우주 및 방산 기업들의 현금 흐름이 급증할 것으로 예상된다.
무슨 일이 (What Happened): 버티컬 리서치 파트너스(Vertical Research Partners)는 전 세계 상위 15개 방산업체가 2026년에 520억 달러의 잉여 현금 흐름을 창출할 것으로 예상했는데, 이는 2021년 말 총 현금 흐름의 거의 두 배에 달하는 수치라고 파이낸셜 타임스(Financial Times)가 월요일 <a href="https://www.ft.com/content/5e368d70-b6e2-4433-a747-cdcfab061f27" target="_blank" rel="noopener">보도</a>했다.
보잉(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)을 제외한 미국의 주요 방산업체 5곳은 2026년 말까지 260억 달러의 현금 흐름을 창출할 것으로 예상된다. 이는 2021년 금액의 두 배 이상이다. 유럽에서는 BAE 시스템스, 라인메탈(Rheinmetall), 사브(Saab)와 같은 거대 방산업체들의 합산 현금 흐름이 40% 이상 증가할 것으로 예상된다.
이 산업의 성장은 러시아의 우크라이나 침공과 중동 및 아시아의 긴장 고조에 대응하여 정부들이 예산을 강화함에 따라 군비 지출이 급격히 증가하는 것과 관련이 있다. 미국은 록히드 마틴(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), RTX(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), 노스롭 그루먼(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), 보잉, 제너럴 다이내믹스(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) 및 그들의 공급업체들을 포함한 5대 방산 그룹의 무기 생산에 거의 130억 달러를 할당했다. 영국 국방부는 지난 3년 동안 우크라이나에 군사 지원을 위해 76억 파운드(100억 3천만 달러)를 약속했다.
추가 정보: <a href="https://www.benzinga.com/news/24/08/40544194/robert-kiyosaki-kamala-harris-is-avocado-toast-her-lying-immoral-unethical-days-coming-to-an-end?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">로버트 기요사키: &#8216;카멀라 해리스는 아보카도 토스트, 그녀의 거짓말, 비도덕적, 비윤리적 날들이 끝나가고 있다&#8217;</a>
이러한 정부 지출의 급증으로 인해 이미 주문량이 거의 기록적인 최고치에 이르렀다. 이 업계에서는 현재 자사주 매입, 배당금, 인수 등 잠재적인 옵션을 통해 증가하는 현금 흐름을 활용하는 방법에 대해 논의하고 있다.
왜 중요한가요 (Why It Matters): 이 업계의 최근 발전에는 <a href="https://www.benzinga.com/government/24/04/38335201/pentagons-defense-innovation-unit-to-boost-startups-with-increased-funding-and-support" target="_blank" rel="noopener">자금과 지원을 늘려 스타트업을 육성</a>하려는 미 국방부의 국방혁신부(Defense Innovation Unit)의 계획, 록히드 마틴의 육군 계약을 <a href="https://www.benzinga.com/markets/equities/23/12/36042512/lockheed-martin-doubles-down-on-army-contracts-as-nvidia-microsoft-intel-aid-defense-digitizatio" target="_blank" rel="noopener">두 배로 늘리고</a>, 제너럴 다이내믹스의 미국 국방부로부터 <a href="https://www.benzinga.com/markets/equities/24/08/40181006/boost-for-us-defense-industry-general-dynamics-unit-wins-1-3b-contract-modification" target="_blank" rel="noopener">13억 달러 규모 계약 수정</a>이 포함된다.
그러나 보잉이 유죄를 인정한 후 미국 국방부와 <a href="https://www.benzinga.com/government/24/07/39690807/how-boeings-guilty-plea-could-impact-us-defense-contracts" target="_blank" rel="noopener">협상하는 것</a>은 향후 계약 확보 능력에 잠재적으로 영향을 미칠 수 있다.
가격 움직임: 월요일 Invesco Aerospace &amp; Defense ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>)는 0.42% 하락, SPDR S&amp;P Aerospace &amp; Defense ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>)는 0.54% 하락했다.
사진 제공: Lockheed Martin
이 기사는 <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a>를 사용하여 생성되었으며, <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>에 의해 편집되었습니다.
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제트기 동체의 주요 공급업체인 스피릿 에어로시스템즈 홀딩스(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>)는 캔자스주 <a href="https://www.spiritaero.com/pages/release/spirit-statement-on-wichita-reduction-in-force/" target="_blank" rel="noreferrer noopener">위치타 공장에서 직원</a>을 400~450명 감원한다고 밝혔다.
이번 감원은 스피릿의 최대 고객인 보잉(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)의 생산 감소에 대한 대응이다.
스피릿은 "최근 상용 프로그램의 배송 속도가 느려지면서 위치타의 인력을 감축하게 되었다"라고 말했다.
원래 보잉의 일부였던 스피릿 에어로시스템즈는 현재 어려움의 핵심이었던 737 맥스(MAX) 제트기와 관련하여 심각한 품질 문제에 직면해 있다.
<a href="https://www.wsj.com/business/airlines/boeing-supplier-spirit-aerosystems-to-lay-off-hundreds-c032aac8?mod=hp_listb_pos3" target="_blank" rel="noreferrer noopener">월스트리트 저널</a>의 보고서에 따르면 약 13,000명의 직원을 고용하고 있는 위치타 시설은 이러한 문제의 진원지이다.
이번 해고는 <a href="https://www.benzinga.com/markets/equities/24/05/38610474/airbus-demands-compensation-to-acquire-spirit-operations-report" target="_blank" rel="noreferrer noopener">에어버스</a> SE(OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) 항공기용 부품을 제조하는 스피릿의 공장 통제와 관련하여 스피릿과 에어버스 간의 <a href="https://www.benzinga.com/markets/equities/24/05/38610474/airbus-demands-compensation-to-acquire-spirit-operations-report" target="_blank" rel="noreferrer noopener">진행 중인 협상</a>으로 인해 보잉의 스피릿 인수 노력이 지연되는 것과 일치한다.
관련 기사: <a href="https://www.benzinga.com/news/24/05/38878486/united-airlines-set-to-expand-as-faa-lifts-safety-limits" target="_blank" rel="noreferrer noopener">FAA가 안전 규제를 완화하면서 유나이티드 항공의 사업 확장 가능성 증가</a>
보잉 경영진은 품질 문제를 해결하려면 스피릿을 인수하는 것이 중요하다고 믿고 있다. 특히 위치타 공장은 지난 1월 알래스카항공(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) 사고와 관련된 동체를 생산해 결함 관리에 있어 오랜 문제가 부각됐다.
지난달, 보잉은 4억 2천 5백만 달러의 선지급금을 지불하여 스피릿이 품질 개선 비용을 부담할 수 있도록 돕기로 했다.
그럼에도 불구하고 스피릿은 <a href="https://www.benzinga.com/news/earnings/24/05/38672413/spirit-aerosystems-encounters-headwinds-in-q1-as-boeing-737-issues-take-toll" target="_blank" rel="noreferrer noopener">1분기에 상당한 손실을 기록</a>했으며 추가 자금 조달을 위해 잠재적인 금융 시장 개입을 암시했다.
팻 섀너핸 CEO는 회사가 현재 에어버스의 A350 및 A220 제트기 부품 생산에서 손실을 입고 있으며 에어버스와의 가격 인상 협상이 교착 상태에 있다고 언급했다.
보잉은 규제 조사와 품질 문제 해결 노력으로 생산 속도를 줄였고, 이로 인해 과잉 재고 관리를 위해 부품 주문이 감소했다.
보잉은 올해 후반기에 월 38대의 737을 생산하는 것을 목표로 하고 있지만, 현재 생산 속도는 여전히 낮다. 반면에 스피릿은 매월 42대의 737 동체를 제조할 수 있는 장비를 갖추고 있다.
스피릿 에어로시스템의 주식은 지난 12개월 동안 24% 이상 상승했다. 투자자들은 SPDR S&amp;P Aerospace &amp; Defense ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) 및 IShares U.S. Aerospace &amp; Defense ETF(BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>)를 통해 이 주식에 노출될 수 있다.
주가 움직임: 금요일 스피릿 주가는 1.55% 하락한 30.51달러에 마감했다.
면책 조항: 이 콘텐츠는 인공지능 도구를 활용하여 일부 제작되었으며, Benzinga 편집인들이 검토하고 발행되었다.
계속 읽기: <a href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" target="_blank" rel="noreferrer noopener">정의부, 보잉에 2021 결의 위반 혐의</a>
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