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In this episode of ETF Spotlight, I speak with Tony Bancroft, portfolio manager of the Gabelli Commercial Aerospace & Defense ETF (GCAD - Free Report) , about the outlook for the aerospace and defense industry in 2026.
The sector had already delivered strong performance last year, driven by rising defense spending amid escalating geopolitical tensions. European defense stocks, in particular, surged as governments ramped up military budgets, partly in response to pressure from President Trump on NATO members to increase their own defense spending.
More broadly, European countries boosted their defense industries primarily in response to Russia’s war in Ukraine. We saw a brief pullback late last year amid signs of potential progress toward ending the conflict.
President Trump has suggested the war could be resolved in the near future, but so far there has been little tangible progress, despite months of diplomatic efforts by his administration.
Defense stocks surged earlier this year following Venezuela-related news, then climbed again after President Trump called for a $1.5 trillion defense budget in 2027, more than 50% above the $901 billion approved for 2026.
Unfortunately, the world is becoming a more dangerous place, with the Russia-Ukraine war, rising tensions between China and Taiwan, India and Pakistan, and continued conflicts across the Middle East. This backdrop continues to support the sector.
Other popular products in the space include the iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , the SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , the Global X Defense Tech ETF (SHLD - Free Report) , and the Select STOXX Europe Aerospace & Defense ETF (EUAD - Free Report) .
Tune in to the podcast to learn more.
Be sure to look out for the next edition of ETF Spotlight, and remember to subscribe!
If you have any comments or questions, please email podcast@zacks.com
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Can the Aerospace and Defense Rally Continue in 2026?
In this episode of ETF Spotlight, I speak with Tony Bancroft, portfolio manager of the Gabelli Commercial Aerospace & Defense ETF (GCAD - Free Report) , about the outlook for the aerospace and defense industry in 2026.
The sector had already delivered strong performance last year, driven by rising defense spending amid escalating geopolitical tensions. European defense stocks, in particular, surged as governments ramped up military budgets, partly in response to pressure from President Trump on NATO members to increase their own defense spending.
More broadly, European countries boosted their defense industries primarily in response to Russia’s war in Ukraine. We saw a brief pullback late last year amid signs of potential progress toward ending the conflict.
President Trump has suggested the war could be resolved in the near future, but so far there has been little tangible progress, despite months of diplomatic efforts by his administration.
Defense stocks surged earlier this year following Venezuela-related news, then climbed again after President Trump called for a $1.5 trillion defense budget in 2027, more than 50% above the $901 billion approved for 2026.
Unfortunately, the world is becoming a more dangerous place, with the Russia-Ukraine war, rising tensions between China and Taiwan, India and Pakistan, and continued conflicts across the Middle East. This backdrop continues to support the sector.
Boeing (BA - Free Report) , Lockheed Martin (LMT - Free Report) , and Northrop Grumman (NOC - Free Report) are among the top holdings in the Gabelli Commercial Aerospace & Defense ETF (GCAD - Free Report) .
Other popular products in the space include the iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , the SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , the Global X Defense Tech ETF (SHLD - Free Report) , and the Select STOXX Europe Aerospace & Defense ETF (EUAD - Free Report) .
Tune in to the podcast to learn more.
Be sure to look out for the next edition of ETF Spotlight, and remember to subscribe!
If you have any comments or questions, please email podcast@zacks.com