πππWith the current geopolitical conflicts in the Middle East and Ukraine, $Invesco Aerospace & Defense ETF(PPA)$ is a good tactical bet.
In just 1 trade, PPA aims to include US companies listed in NYSE and Nasdaq, that are engaged in operations supporting the US Defense, Military, Homeland Security and Space Operations.
The Top 10 holdings include $RTX Corp(RTX)$ $General Electric Co(GE)$ $Lockheed Martin(LMT)$ $Northrop Grumman(NOC)$ $Boeing(BA)$ General Dynamics, L3 Harris Technologies, Honeywell, TransDigm Group and Parker-Hannifin Corporation.
The Top 10 holdings weightage is 51%. Total number of holdings are 53.
The expense ratio is 0.58%. Assets Under Management is USD 3.01 billion. Distributions are paid every 3 months. The current distribution yield is 0.63%.
RTX Corporation is the Top holding. It is a leading aerospace company that manufactures aircraft engines, avionics, aerostructure, cyber security solutions, guided missiles, air defense systems, satellites and drones. RTX has shaped the history of space exploration with its space technologies used for missile warning, intelligence, weather information, Earth Observation. It was fornerly known as Raytheon Technologies Corporation.
General Electric is a conglomerate that offers a wide range of products and services from aircraft engines and systems, healthcare systems and pharmaceutical diagnostics, power generation, oil and gas production equipment to medical imaging, financial and industrial products.
Lockheed Martin delivers comprehensive training and logistics solutions to prepare military personnel for the most complex missions. Lockheed Martin's innovative systems include cutting edge defense technology for modern warfare and security.
Lockheed Martin has just won a huge military contract on Monday worth USD 17 billion to develop the next generation of interceptors to defend the US against an intercontinental ballistic missile attack according to the US Missile Defense Agency.
The US Department of Defense has an authorised USD 841.4 billion budget for 2024. For 2025 the US Defense Department 's budget has increased to USD 849.8 billion.
With increased military spending, RTX, GE, Lockheed Martin and other US Defense companies will continue to grow exponentially in the future.
Wall Street Analysts are bullish on PPA ETF with a Buy rating, Target price of USD 110.21, an upside potential of 12%
Performance wise PPA is up 0.37% today and has risen by 7.9% year todate. In 2023 PPA has jumped by 21%.
PPA is my tactical bet on the current geopolitical conflicts as I believe that it has lots of upside potential ahead.
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