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

最新ニュース 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

As world leaders convened in Canada for the G7 summit to debate economic cooperation, U.S. President Donald Trump suddenly hijacked the headlines by <a href="https://www.benzinga.com/markets/equities/25/06/45968002/trump-says-israel-iran-ceasefire-not-on-the-table-left-g7-early-for-a-much-bigger-reason-spy-qqq-dip-in-premarket-oil-climbs">cutting his G7 visit short </a>and boarding Air Force One to tackle what he described as a much more pressing issue: stopping Iran&#8217;s nuclear pursuits once and for all. With Israel having struck deep inside Iranian territory and Tehran threatening retaliation, investors now prepare themselves for the <a href="https://www.benzinga.com/etfs">ETF</a>-level consequences of a protracted geopolitical crisis.
<h2 class="wp-block-heading">What Happened</h2>
Trump emphatically brushed aside proposals for a ceasefire between Iran and Israel, instead calling for &#8220;an end. A real end. Not a ceasefire. An end.&#8221; The statement, made en route to Washington, was immediately seen by markets as a possible ratcheting up of an already tense conflict. 
And while global equities have been fairly stable, activity below the surface is very different: energy, defense, and gold ETFs are flashing new risk signs.
<h2 class="wp-block-heading">Energy ETFs Respond To Oil Supply Threats</h2>
With the flagship Bazan oil refinery closing after deadly missile attacks by Iran, and concerns building over possible disruptions to Iranian oil exports or shipping through the Strait of Hormuz, <a href="https://www.benzinga.com/markets/commodities/25/06/45965846/israel-is-pounding-irans-energy-infrastructure-and-its-sending-these-oil-etfs-soaring-but-it-maybe-bad-news-at-the-gas-pump">energy-linked ETFs are picking up steam</a>.
Securities such as the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the Vanguard Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>) experienced small inflows for the week as oil prices ticked higher on supply worries. United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), a direct play on crude futures, also experienced increased volume, and the fund is up around 5% as of Tuesday afternoon.
<h2 class="wp-block-heading">Defense ETFs Get A War-Posture Boost</h2>
Trump&#8217;s comments, combined with the deployment of U.S. military, specifically, the Middle East-bound USS Nimitz aircraft carrier battle group, has strengthened sentiment behind defense and aerospace stocks.
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>) both were up moderately after the president&#8217;s statements. Leveraged vehicles such as Direxion Daily Aerospace &amp; Defense Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFEN#NYSE">DFEN</a>) also gained interest.
<h2 class="wp-block-heading">Safe Havens Shine As Diplomatic Channels Fade</h2>
Gold ETFs, traditionally the &#8220;nuclear fallout shelter&#8221; of international finance, are getting some life after a slow spring. Trump&#8217;s &#8220;not in the mood to negotiate&#8221; refrain coupled with tweets threatening strikes on Tehran revived safe-haven demand.
Since Friday, the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) and SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) have seen modest but consistent inflows.
The G7 walkout sent a message to markets that this administration isn&#8217;t pivoting, it&#8217;s running away from diplomacy. Even if risk assets aren&#8217;t pricing in disaster, safe-haven ETFs are quietly getting ready for one.
Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/06/45939307/are-gold-etfs-really-a-hedge-during-a-geopolitical-crisis-heres-what-to-check-before-investing">Are Gold ETFs Really A Hedge During A Geopolitical Crisis? Here&#8217;s What To Check Before Investing</a>
<h2 class="wp-block-heading">Middle East ETFs Navigate Uncertain Course</h2>
Regional funds could suffer devastating fallout if the conflict escalates. ETFs such as WisdomTree Middle East Dividend Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GULF#NASDAQ">GULF</a>) and iShares MSCI Frontier and Select EM ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FM#NYSE">FM</a>) have minimal direct exposure to Iran but could still lose out on general capital outflow in the face of geopolitical volatility.
<h2 class="wp-block-heading">Conclusion: An Endgame Without An Exit Strategy</h2>
Markets can typically absorb tension, but they have trouble with open-ended uncertainty. Keywords like &#8220;not a ceasefire,&#8221; &#8220;an end,&#8221; and the like give investors little hints of how this war could end and at what cost markets could eventually pay.
For the time being, ETFs are where the market is subtly voting on what lies ahead, and the early indicators are that it&#8217;s gearing up for a rough ride.
Read Next: 
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</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

Politics

ETFs

DFEN

GULF

iShares Dow Jones US Aerospace & Defense Index Fund

Trump Wants 'An End, Not a Ceasefire' For The Israel-Iran War: What That Means For ETFs

Wizz Air Holding (OTC:<a class="ticker" href="https://www.benzinga.com/stock/WZZZY#OTC">WZZZY</a>) is deepening its collaboration with RTX Corp.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) Pratt &amp; Whitney division by <a href="https://www.benzinga.com/pressreleases/25/06/n45967821/wizz-air-selects-rtx-pratt-whitney-gtf-engines-to-power-up-to-an-additional-177-airbus-a321neo-air" target="_blank" rel="noreferrer noopener">ordering GTF engines for 177 Airbus</a> A321neo aircraft. The announcement, made at the Paris Air Show, boosts the airline&#8217;s total commitment to 453 GTF-powered aircraft.
The purchase is part of Wizz Air&#8217;s broader fleet expansion and sustainability strategy. It also includes a long-term service agreement under Pratt &amp; Whitney&#8217;s EngineWise program to manage engine maintenance and reliability.
József Váradi, the airline&#8217;s CEO, said the decision supports Wizz Air&#8217;s goal of reaching a 500-jet fleet within the next decade. He cited the engine&#8217;s fuel savings, lower noise levels, and reduced emissions as critical to enhancing operational efficiency and customer satisfaction.
Also Read: <a href="https://www.benzinga.com/news/contracts/25/06/45947802/rtx-scores-major-aviation-and-defense-deals-with-frontier-cebu-pacific-and-dynetics" target="_blank" rel="noreferrer noopener">RTX Scores Major Aviation And Defense Deals With Frontier, Cebu Pacific, And Dynetics</a>
Pratt &amp; Whitney has powered Wizz Air&#8217;s growth since 2003 and currently supports a large share of its Airbus narrow-body fleet. The new aircraft will eventually incorporate the upgraded GTF Advantage engine, offering more thrust and improved performance.
In a separate development, Pratt &amp; Whitney announced the <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/n45967520/rtxs-pratt-whitney-adds-itp-aero-to-gtf-mro-network" rel="noreferrer noopener">addition of ITP Aero</a> to its maintenance, repair, and overhaul (MRO) network. The Madrid-based facility will service PW1500G and PW1900G engines used in the Airbus A220 and Embraer E-Jets E2 families, marking the 21st shop in the global GTF MRO network.
Eva Azoulay, CEO of ITP Aero, said the collaboration extends a longstanding partnership in GTF component production and enables faster service turnarounds for European customers.
The expansion highlights RTX&#8217;s continued investment in aviation sustainability and aftermarket services. With over 90,000 engines in operation globally, Pratt &amp; Whitney is scaling its infrastructure to meet the growing demand for cleaner and more efficient flight technologies.
Related ETFs: iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>), SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>).
Price Action: RTX shares were trading higher by 0.61% to $147.63 premarket at last check Tuesday.
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Photo by T. Schneider via Shutterstock

Large Cap

News

WZZZY

RTX's Pratt & Whitney Deepens Wizz Air Partnership With New GTF Engine Order

The White House just unveiled a sweeping set of executive actions aimed at bolstering the future of America&#8217;s defense and aviation.
What Happened: On Wednesday, President Donald Trump signed three executive orders aimed at revitalizing the country&#8217;s stalled aerospace ambitions, targeting the domestic production of drones, supersonic jets, and even electric vertical takeoff and landing (eVTOL) aircraft.
The orders, announced by the White House Office of Science and Technology Policy (OSTP), are designed to slash regulatory red tape, bolster U.S. supply chains, and accelerate real-world deployment of next-generation aviation.
&#8220;Decades of regulatory gridlock have grounded advancements in drones, flying cars, and supersonic flight in the U.S.&#8221; said OSTP Director Michael Kratsios, while adding that &#8220;President Trump's actions will unleash a new era of American aviation dominance, fostering innovation, driving economic growth, and protecting our national security.&#8221;
See Also: <a href="https://www.benzinga.com/news/legal/25/06/45895643/disney-universal-studios-sue-ai-image-generator-midjourney-for-copyright-infringement">Disney, Universal Studios Sue AI-Image Generator Midjourney For Copyright Infringement</a>
Among the key provisions of the orders include routine beyond-line-of-sight drone operations, that is allowing drones to fly beyond the visual range of operators. Followed by a pilot program for eVTOL aircraft for EMS, cargo, and defense logistics, alongside the repealing of longstanding rules that block supersonic flight testing.
The White House believes this regulatory overhaul will &#8220;empower our domestic drone economy to assist with critical infrastructure, emergency response, and long-distance cargo and medical delivery.&#8221;
The orders also address the growing security threats posed by criminal and foreign drone activity. According to the fact sheet, the administration will prioritize &#8220;real-time detection and identification of drones to safeguard national security.&#8221;
Why It Matters: This comes just a week after another Presidential executive order was signed, creating the &#8220;eVTOL Integration Pilot Program&#8221; (ePIPP), which establishes a <a href="https://www.benzinga.com/content/45892255/government-mandate-sends-evtol-stocks-flying">clearer regulatory runway</a> for the sector.
The move marks a significant pivot in U.S. aviation policy and has since led to a rally in several U.S. defense and aviation stocks. Archer Aviation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACHR#NYSE">ACHR</a>), which develops eVTOL aircraft, was up 6.94% on Wednesday following the announcement, with Joby Aviation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JOBY#NYSE">JOBY</a>) following suit with 2.01% gains.
Drone maker, AeroVironment Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVAV#NASDAQ">AVAV</a>) was down 0.05% during the day, but is up 0.78% after hours, owing to the same, while New Horizon Aircraft Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOVR#NASDAQ">HOVR</a>), another eVTOL company, was up by an impressive 19.64% during the day, and another 4.48% after hours.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td class="has-text-align-center" data-align="center">Stocks / ETFs</td>
<td class="has-text-align-center" data-align="center">Last 30 Days</td>
<td class="has-text-align-center" data-align="center">Year-To-Date</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">Archer Aviation Inc. </td>
<td class="has-text-align-center" data-align="center">+34.03%</td>
<td class="has-text-align-center" data-align="center">+27.17%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">Joby Aviation Inc. </td>
<td class="has-text-align-center" data-align="center">+37.38%</td>
<td class="has-text-align-center" data-align="center">+19.04%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">AeroVironment Inc.</td>
<td class="has-text-align-center" data-align="center">+13.40%</td>
<td class="has-text-align-center" data-align="center">+21.14%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">New Horizon Aircraft Ltd. </td>
<td class="has-text-align-center" data-align="center">+168%</td>
<td class="has-text-align-center" data-align="center">+22.94%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>)</td>
<td class="has-text-align-center" data-align="center">+10.27%</td>
<td class="has-text-align-center" data-align="center">+20.08%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">Global X Robo Global Robotics &amp; Automation ETF (ASX: ROBO)</td>
<td class="has-text-align-center" data-align="center">+4.37%</td>
<td class="has-text-align-center" data-align="center">-2.23%</td>
</tr>
</tbody>
</table>
</figure>
Recently, JPMorgan analyst Bill Peterson pegged the eVTOL market to be worth $1 trillion down the line, saying that the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45655078/joby-archer-flying-cars-on-a-1-trillion-runway-but-still-not-cleared-for-takeoff">dream was still alive</a>, &#8220;just not quite ready for boarding&#8221; right away, citing certification as a &#8220;heavy lift.&#8221; As a result, these orders should accelerate things for the industry going forward.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="147" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11222754/Screenshot-2025-06-12-at-7.57.41-AM-1024x147.png" alt="" class="wp-image-946908" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11222754/Screenshot-2025-06-12-at-7.57.41-AM-1024x147.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11222754/Screenshot-2025-06-12-at-7.57.41-AM-300x43.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11222754/Screenshot-2025-06-12-at-7.57.41-AM-768x110.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11222754/Screenshot-2025-06-12-at-7.57.41-AM.png 1520w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Shares of Archer Aviation rank in the 98th percentile on Momentum, with a favorable price trend in the short, medium, and long term, according to Benzinga&#8217;s Edge Stock Rankings. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here to see how it compares</a> with Joby Aviation and New Horizon Aircraft, alongside other peers and competitors.
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</ul>
Image Via Shutterstock

Equities

Markets

ACHR

AVAV

HOVR

JOBY

ROBO

Trump Launches Aviation Overhaul: Archer, Joby, New Horizon, AeroVironment Rally As US Targets Drone, eVTOL, Supersonic Comeback

IperionX Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPX#NASDAQ">IPX</a>) shares surged Thursday after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/g45790807/iperionx-awarded-u-s-department-of-defense-sbir-phase-iii-contract-for-up-to-us-99m" rel="noreferrer noopener">secured a major U.S. Department of Defense</a> contract to supply domestically produced titanium parts for military use.
The $99 million Small Business Innovation Research (SBIR) Phase III Indefinite Delivery, Indefinite Quantity (IDIQ) agreement enables the Pentagon to order titanium components directly from IperionX.
The contract permits U.S. defense agencies to commission task-specific orders as part of the &#8220;Low-Cost Domestic Titanium for Defense Applications&#8221; effort.
Early task orders will involve high-performance titanium fasteners manufactured at IperionX&#8217;s Virginia campus using proprietary technologies. The project supports skilled local jobs while advancing U.S. defense readiness.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/05/45667868/top-2-materials-stocks-that-are-ticking-portfolio-bombs" rel="noreferrer noopener">Top 2 Materials Stocks That Are Ticking Portfolio Bombs</a>
The agreement aligns with federal priorities to boost the supply of strategic materials from domestic sources. Future task orders could include advanced aerospace parts, positioning IperionX as a long-term supplier for military-grade titanium.
&#8220;Securing this Phase III contract is a pivotal milestone for IperionX,&#8221; said Anastasios (Taso) Arima, the company&#8217;s CEO. &#8220;It validates the performance of our technologies and underscores the Department of Defense&#8217;s commitment to reshore an all-American titanium supply chain.&#8221;
Relevant ETFs include SPDR S&amp;P Aerospace &amp; Defense ETF (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: IPX shares are trading 23.79% higher at $30.23 at Thursday&#8217;s last check.
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</ul>

Contracts

IperionX Rockets 23% After Securing $99M Defense Contract For Domestic Titanium

Redwire Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDW#NYSE">RDW</a>), on Wednesday, announced its lunar and Martian construction tool, Mason, has passed a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/b45767288/redwire-receives-nasa-approval-to-advance-cutting-edge-manufacturing-technology-for-building-infra" rel="noreferrer noopener">key NASA milestone</a>, completing its Critical Design Review (CDR). The toolset, developed under a $12.9 million NASA Tipping Point award, supports future off-world infrastructure needs.
Mason is designed to turn loose lunar or Martian soil, known as regolith, into solid surfaces like landing pads and roads. It includes three components: a grading blade (BASE), a compaction tool (PACT), and a microwave sintering device (M3LT). Together, they reduce hazards tied to dust and unstable terrain during rocket launches and human activity.
The technology aims to cut costs and improve safety for future space missions. Regolith can damage equipment, reduce mobility, and become airborne during launches, potentially endangering astronauts and satellites.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/05/45624626/record-memorial-day-weekend-air-travel-expected-will-airline-stocks-get-a-lift" rel="noreferrer noopener">Space Stocks Weekly Countdown: RocketLab, Blacksky, Redwire &amp; More</a>
Redwire now plans to build and test the Mason prototype. The company is also seeking a flight opportunity for a demonstration mission.
"Mason technology is critical to enabling sustainable operations on the Moon and Mars surface," said Tom Campbell, Redwire's President of Space Missions.
Redwire is working with several partners, including NASA's Kennedy Space Center Swamp Works, Lambda Technologies, the Colorado School of Mines, and the University of Central Florida.
Recently, Redwire <a target="_blank" href="https://www.benzinga.com/news/small-cap/25/05/45624208/why-is-space-technology-company-redwires-stock-is-surging-today" rel="noreferrer noopener">delivered</a> the onboard computer for ESA's Comet Interceptor mission, marking a key milestone with its ADPMS-3 system after completing rigorous acceptance testing. This system enables critical data processing and spacecraft control functions.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Related ETFs: ARK Space Exploration &amp; Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#NYSE">ARKX</a>), SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>).
Price Action: RDW shares are trading higher by 11.5% to $16.54 at last check Wednesday.
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</ul>
Photo by Mer_Studio via Shutterstock

Movers

Tech

ARKX

Redwire Stock Skyrockets After NASA Clears Lunar Tool Mason For Next Phase

Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) and GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) announced on Tuesday a <a href="https://www.benzinga.com/pressreleases/25/06/g45743410/kratos-and-ge-aerospace-sign-teaming-agreement-expand-small-engine-portfolio-with-new-propulsion-s" target="_blank" rel="noreferrer noopener">formal agreement</a> to develop propulsion technologies for next-generation unmanned aerial systems (UAS) and Collaborative Combat Aircraft (CCA) platforms.
Building on last year&#8217;s memorandum of understanding, the partnership focuses on designing and producing affordable, high-performance engines such as the GEK800 and the more powerful GEK1500, aimed at enhancing U.S. defense capabilities.
Kratos offers over 20 years of experience developing small, cost-effective engines for drones and missiles, while GE Aerospace contributes extensive propulsion expertise and manufacturing scale. Together, they aim to deliver scalable propulsion solutions that meet critical national security needs.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/25/06/45721053/get-ready-to-pay-the-price-of-tariffs-ge-is-already-passing-costs-to-customers" rel="noreferrer noopener">Get Ready To Pay The Price Of Tariffs: GE Is Already Passing Costs To Customers</a>
Kratos CEO Eric DeMarco stressed affordability and rapid capability delivery as key benefits of the partnership. GE Aerospace Defense President Amy Gowder highlighted the move as a step toward providing adaptable, high-performance propulsion for various unmanned platforms.
The GEK800 engine is currently under development, with work also progressing on the GEK1500. These engines target unmanned and collaborative combat aircraft, offering cost-efficient propulsion for diverse defense missions.
Investors may watch stocks 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>), as well as ETFs such as the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">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>).
Price Action: GE shares are trading lower by 0.44% to $246.40, and KTOS stock is up 2.06% at $38.83 at last check Tuesday.
Read Next:
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Photo by Jonathan Weiss via Shutterstock

KTOS

Kratos, GE Aerospace Expand Small Engine Portfolio With New Propulsion Systems

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

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:
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<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

Government

Market Summary

AXON

FITE

SHLD

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

Global

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:
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<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

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

Regulations

Economics

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

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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>

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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

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