At 90 seconds to midnight, we’re closer than ever before to nuclear war.
Not only have Russian-China ties grown stronger, but Russia just said it would roll out its Sarmat nuclear missiles, and new nuclear submarines.
“The 35-metre missile has a range of 18,000 km and can carry at least 10 multiple targetable re-entry vehicles – each with a nuclear warhead – which can each be aimed at a different target. It can also deliver hypersonic Avangard glide vehicles,” according to Reuters.
Should the situation escalate, some of the top investment opportunities could be in defense stocks, and related ETFs.
Invesco Aerospace & Defense ETF (PPA)
One of the best ways to diversify with defense stocks is with an ETF like the Invesco Aerospace & Defense ETF (PPA). Not only do you gain exposure to most of the industry heavyweights, you can do so at less cost. With an expense ratio of 0.50%, the PPA ETF offers exposure to companies involved in the development manufacturing, operations and support of US defense, homeland security and aerospace operations.
Some of its top holdings include Lockheed Martin, Boeing, Raytheon Technologies, Honeywell, General Dynamics, L3Harris Technologies, and Textron to name a few.
SPDR S&P Aerospace & Defense ETF (XAR)
With an expense ratio 0.35%, the SPDR S&P Aerospace & Defense ETF seeks to provide returns that correspond to the S&P Aerospace & Defense Select Industry Index. Some of its top holdings include Mercury Systems, Axon Enterprise, Northrop Grumman, Lockheed Martin, General Dynamics Corp., L3Harris Technologies Inc., and Maxar Technolgies to name a few.
iShares U.S. Aerospace & Defense ETF (ITA)
The ITA ETF is another hot defense ETF to consider.
With an expense ratio of 0.39%, the iShares US Aerospace & Defense ETF invests in stocks in the domestic aerospace and defense sector. These stocks can include companies that manufacture both commercial and military aircraft as well as other types of defense-related equipment. It has holdings in Boeing, United Technologies Corporation, Lockheed Martin, Raytheon, General Dynamics, and Northrop Grumman for example.