3 ETFs with Exposure to Military and Defense Stocks - PowerPoint PPT Presentation

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3 ETFs with Exposure to Military and Defense Stocks

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With the recent terror attacks in Paris, the military and defense sectors have been seeing massive gains. Check out these 3 ETFs with exposure to military and defense companies. – PowerPoint PPT presentation

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Title: 3 ETFs with Exposure to Military and Defense Stocks


1
ETF TRADING RESEARCH
3 ETFs with Exposure to Military and Defense
Stocks
2
Welcome to ETF Trading Research Your premier site
to instantly diversify your portfolio to make
more money! Want More Research and Strategies on
ETFs visit our website ETFtradingresearch.com
3
  • Hi, My name is Corey and Im with ETF Trading
    Research, today were reviewing our recently
    published article

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  • 3 ETFs with Exposure to Military and Defense
    Stocks

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  • Aerospace and Defense ETFs have taken a hit in
    the recent months. But following the recent
    terrorist attacks in Paris were seeing investors
    gravitate toward these stocks.

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  • Military budget have been cut back and the amount
    of money theyre spending on private contracts
    has slowed. But the truth is the need for a
    strong military and the spending with defense
    companies isnt going to disappear anytime soon.

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  • Tensions in the Middle East, Eastern Europe, and
    Russia have become even more aggressive in recent
    years. These conflicts could cause Western
    countries to ramp up their spending on military
    defenses.

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  • Lets take a look at 3 ETFs with exposure to U.S.
    companies that manufacture military aircrafts and
    other defense equipment.

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  • 3 ETFs with exposure to military and defense
    companies

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  • There are three major ETFs focused on military
    spending. They include PowerShares Aerospace
    Defense ETF PPA, iShares U.S. Aerospace
    Defense ETF ITA, and SPDR SP Aerospace
    Defense ETF XAR.

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  • Lets take a look at the ETF with the highest
    exposure to military and defense companies

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  • iShares U.S. Aerospace Defense ETF has 568.8
    million of assets under management. The ETF is
    trading at 120.66 and that is up 15 points from
    its price of 105.00 in October.

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  • As you can see in the chart below, defense stocks
    have already begun moving higher in the wake of
    the recent terrororist attacks.

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  • ITA operates with an expense ratio of 0.43 and
    has a dividend yield of 1.02. ITAs top five
    holdings include, Boeing Company BA, United
    Technologies UTX, Lockheed Martin LMT,

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  • General Dynamics GD, and Northrop Grumman NOC.

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  • The ETF with the second most money in it with
    exposure to military and defense companies

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  • PowerShares Aerospace Defense Portfolio PPA is
    the 2nd most popular military and defense ETF
    with 271.3 million AUM. The ETF is trading at
    36.87. PPA has a 52 week low of 15.27, so it
    is up 141.26 from that price!

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  • The ETF has a dividend yield of 0.80 and
    operates with an expense ratio of 0.66. PPAs
    top five holdings include United Technologies
    Corp UTX,

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  • Boeing Co BA, Honeywell International Inc HON,
    Lockheed Martin Corp LMT, and General Dynamics
    Corp GD.

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  • The ETF with the third highest AUM with exposure
    to military and defense companies

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  • SPDR SP Aerospace Defense ETF XAR comes in
    third on the this list of military and defense
    ETFs with 163.9 million in AUM. It currently
    trades for 54.80. Its up 84.79 from its 52
    week low of 29.65.

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  • XAR has an expense ratio of 0.35 and a dividend
    yield of 0.87. The top five holdings of XAR
    include L-3 Communications LLL, Northrop Grumman
    NOC, Raytheon RTN, Boeing BA, and BWX
    Technologies BWXT.

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  • Is investing in the military and defense sector a
    good idea?

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  • Weve already seen an uptick in defense stocks
    following the attack in Paris. And it seems like
    the battle with ISIS is starting to escalate.
    This type of bad news is usually good news for
    defense stocks.

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  • But the rally could be short lived. If the world
    puts a fully fledged military assault on ISIS,
    this radical sect wont last long. Killing
    civilians and dodging smart bombs while you hide
    under a rock is one thing.
  •  

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  • But theyll crumble in the face of a true boots
    on the ground assault.

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