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Aerospace and Defense ETFs Rallying on Russia-Ukraine War
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The aerospace and defense sector has been showing immense strength, following Russia’s invasion of Ukraine. This is especially true as the attack in Ukraine has raised the prospect of higher military spending, pushing the stocks higher.
Russia’s aggression has fueled an arms race as European countries bulk up their military capabilities as a warning. In its historic move, Germany ramped up its defense spending due to the Russia-Ukraine war. The German chancellor, Olaf Scholz, said that defense spending in Europe’s biggest economy will be pushed up to 2% of gross domestic product from an estimated 1.5% in 2021. He also announced a sustained increase in defense spending over the coming years.
Germany’s move has paved the way for other countries to bolster their military and defense systems. This will result in a significant increase in military demand in the coming months, thereby boosting the share prices of the companies that produce military technology and weapons. As such, the Russia-Ukraine war could ignite a boom in the aerospace and defense industry this year.
Further, countries have pledged to provide more stringent ground-to-air missiles for Ukrainian forces to repel the Russian advance. This is also fueling the defense stocks.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report)
iShares U.S. Aerospace & Defense ETF provides exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace & Defense Index. It holds 33 stocks in its basket with AUM of $3 billion and an expense ratio of 0.42%.
iShares U.S. Aerospace & Defense ETF trades in an average daily volume of around 348,000 shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
SPDR S&P Aerospace & Defense ETF offers equal-weight exposure to 31 companies in the aerospace & defense segment. It follows the S&P Aerospace & Defense Select Industry Index, charging 35 bps in annual fees from investors (read: Top ETF Stories of February That Deserve a Watch in March).
SPDR S&P Aerospace & Defense ETF has been able to manage $1.3 billion in its asset base and trades in an average daily volume of 119,000 shares. It has a Zacks ETF Rank #3 with a Medium risk outlook.
ARK Space Exploration & Innovation ETF is an actively managed ETF that seeks to invest in domestic and foreign equity securities of companies that are engaged in the theme of space exploration and innovation. In total, the fund holds 36 securities in its basket.
ARK Space Exploration & Innovation ETF has gathered $396.2 million in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 285,000 shares per day on average.
With AUM of $26.8 million, SPDR S&P Kensho Future Security ETF offers exposure to companies that offer products and services that are driving the innovation behind future security, including the areas of cyber security, advanced border security, and the following areas for military application: robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities. It tracks the S&P Kensho Future Security Index, holding 68 stocks in its basket (read: Why Cybersecurity ETFs are Rising amid Russia-Ukraine Crisis).
SPDR S&P Kensho Future Security ETF trades in an average daily volume of 4,000 shares and charges 45 bps in annual fees from investors. The fund has a Zacks ETF Rank #3.
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Aerospace and Defense ETFs Rallying on Russia-Ukraine War
The aerospace and defense sector has been showing immense strength, following Russia’s invasion of Ukraine. This is especially true as the attack in Ukraine has raised the prospect of higher military spending, pushing the stocks higher.
In fact, ETFs tracking the aerospace and defense industry has been on the rise lately. iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , ARK Space Exploration & Innovation ETF (ARKX - Free Report) and SPDR S&P Kensho Future Security ETF (FITE - Free Report) gained nearly double-digits in a week (read: 5 Sector ETFs Benefiting From Russia-Ukraine Tensions).
Russia’s aggression has fueled an arms race as European countries bulk up their military capabilities as a warning. In its historic move, Germany ramped up its defense spending due to the Russia-Ukraine war. The German chancellor, Olaf Scholz, said that defense spending in Europe’s biggest economy will be pushed up to 2% of gross domestic product from an estimated 1.5% in 2021. He also announced a sustained increase in defense spending over the coming years.
Germany’s move has paved the way for other countries to bolster their military and defense systems. This will result in a significant increase in military demand in the coming months, thereby boosting the share prices of the companies that produce military technology and weapons. As such, the Russia-Ukraine war could ignite a boom in the aerospace and defense industry this year.
Further, countries have pledged to provide more stringent ground-to-air missiles for Ukrainian forces to repel the Russian advance. This is also fueling the defense stocks.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report)
iShares U.S. Aerospace & Defense ETF provides exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace & Defense Index. It holds 33 stocks in its basket with AUM of $3 billion and an expense ratio of 0.42%.
iShares U.S. Aerospace & Defense ETF trades in an average daily volume of around 348,000 shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
SPDR S&P Aerospace & Defense ETF (XAR - Free Report)
SPDR S&P Aerospace & Defense ETF offers equal-weight exposure to 31 companies in the aerospace & defense segment. It follows the S&P Aerospace & Defense Select Industry Index, charging 35 bps in annual fees from investors (read: Top ETF Stories of February That Deserve a Watch in March).
SPDR S&P Aerospace & Defense ETF has been able to manage $1.3 billion in its asset base and trades in an average daily volume of 119,000 shares. It has a Zacks ETF Rank #3 with a Medium risk outlook.
ARK Space Exploration & Innovation ETF (ARKX - Free Report)
ARK Space Exploration & Innovation ETF is an actively managed ETF that seeks to invest in domestic and foreign equity securities of companies that are engaged in the theme of space exploration and innovation. In total, the fund holds 36 securities in its basket.
ARK Space Exploration & Innovation ETF has gathered $396.2 million in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 285,000 shares per day on average.
SPDR S&P Kensho Future Security ETF (FITE - Free Report)
With AUM of $26.8 million, SPDR S&P Kensho Future Security ETF offers exposure to companies that offer products and services that are driving the innovation behind future security, including the areas of cyber security, advanced border security, and the following areas for military application: robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities. It tracks the S&P Kensho Future Security Index, holding 68 stocks in its basket (read: Why Cybersecurity ETFs are Rising amid Russia-Ukraine Crisis).
SPDR S&P Kensho Future Security ETF trades in an average daily volume of 4,000 shares and charges 45 bps in annual fees from investors. The fund has a Zacks ETF Rank #3.