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iShares U.S. Aerospace & Defense ETFiShares U.S. Aerospace & Defense ETFiShares U.S. Aerospace & Defense ETF

iShares U.S. Aerospace & Defense ETF

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Can Instability Be an Asset Class?Aerospace and Defense (A&D) ETFs have shown remarkable performance in 2025, with funds like XAR achieving a 49.11% year-to-date return. This surge follows President Trump's October 2025 directive to resume U.S. nuclear weapons testing after a 33-year moratorium, a decisive policy shift responding to recent Russian weapons demonstrations. The move signals the formalization of Great Power Competition into a sustained, technology-intensive arms race, transforming A&D spending from discretionary to structurally mandatory. Investors now view defense appropriations as a guaranteed source of funding, creating what analysts call a permanent "instability premium" on sector valuations. The financial fundamentals supporting this outlook are substantial. The FY2026 defense budget allocates $87 billion for nuclear modernization alone, a 26% increase in funding for critical programs like the B-21 bomber, Sentinel ICBM, and Columbia-class submarines. Major contractors are reporting exceptional results: Lockheed Martin established a record $179 billion backlog while raising its 2025 outlook, effectively creating multi-year revenue certainty that functions like a long-duration bond. In 2023, global military spending reached $2.443 trillion, with NATO allies driving over $170 billion in U.S. foreign military sales, which extended revenue visibility beyond domestic congressional cycles. Technological competition is accelerating investments in hypersonics, digital engineering, and modernized command-and-control systems. The shift toward AI-driven warfare, resilient space-based architectures, and advanced manufacturing processes (exemplified by Lockheed's digital twin technology for the Precision Strike Missile program) is transforming defense contracting into a hybrid hardware-software model with sustained high-margin revenue streams. The modernization of Nuclear Command, Control, and Communications (NC3) systems and implementation of Joint All-Domain Command and Control (JADC2) strategy require continuous, multi-decade investments in cybersecurity and advanced integration capabilities. The investment thesis reflects structural certainty: legally mandated nuclear modernization programs are immune to typical budget cuts, contractors hold unprecedented backlogs, and technological superiority demands perpetual high-margin research and development. The resumption of nuclear testing, driven by strategic signaling rather than technical necessity, has created a self-fulfilling cycle that guarantees future expenditures. With geopolitical escalation, macroeconomic certainty through front-loaded appropriations, and rapid technological innovation converging simultaneously, the A&D sector has emerged as an essential component of institutional portfolios, supported by what analysts characterize as "geopolitics guaranteeing profits."
CBOE:ITALong
by UDIS_View
DEFENSE WINS CHAMPIONSHIPS (Global Conflict Summary EDITION)Per the council of foreign relations, these are the following current global conflicts. I've included a brief description of each conflict. It's important to understand these if you're planning or already are investing in defense stocks. Per TA, I've labeled bearish price targets, bullish price targets, relevant trends. It looks overvalued from analysis on ITA, but there is upside. I'd say that short term probably favors bulls (talking maybe weeks if not less), mid term probably favors the bears (multiple months), long term will likely favor bulls, but it will depend on the movement we see over FEB and March. Global Conflict Summary Americas Criminal Violence in Mexico The criminal violence in Mexico involves various organizations such as Sinaloa, Los Zetas, Tijuana/AFO, Juárez/CFO, Beltrán Leyva, Gulf, La Familia Michoacana, the Knights Templar, and Cartel Jalisco Nuevo Generación (CJNG). The violence is attributed to the increase in crime rates and the limited interventions by the state and municipal police. Instability in Haiti The instability in Haiti involves the government, opposition parties, and the international community. The crisis revolves around the dispute over the presidential term and the government’s inability to control skyrocketing prices of commodities. Instability in Venezuela Venezuela is facing an unprecedented social and humanitarian collapse due to poor economic policies, political conflict, and the international community’s unsuccessful attempts to bring about positive change. The conflict involves the government under President Nicolás Maduro and opposition groups. Asia Instability in Afghanistan Since the Taliban reclaimed control of Afghanistan in 2021, the country has further plunged into political and economic instability. The conflict involves the Afghan government, the Taliban, and various local and international actors. Territorial Disputes in the South China Sea China’s sweeping claims of sovereignty over the sea have antagonized competing countries. The key parties involved in this territorial dispute are China, the Philippines, and the US. North Korea Crisis North Korea could resort to nuclear weapons in a crisis as it is making significant progress toward implementing a more robust nuclear strategy. The crisis involves North Korea, South Korea, the United States, Japan, and other international actors. Instability in Pakistan Pakistan continues to face multiple sources of internal and external conflict. Extremism and intolerance of diversity and dissent have grown, threatening the country’s prospects for social cohesion and stability. The conflict involves the Pakistani government, opposition groups like the Pakistan Muslim League and the Pakistan Peoples Party, and militant groups like the Tehrik-e-Taliban Pakistan (TTP). Conflict Between India and Pakistan Since 1947, India and Pakistan have been involved in a number of wars, conflicts, and military standoffs, with the Kashmir conflict serving as the catalyst for every war between the two states. The conflict primarily involves India and Pakistan, with the disputed region of Kashmir being a major point of contention. Confrontation Over Taiwan Tensions are rising over Taiwan as China’s power and assertiveness grows, competition between the U.S. and China spreads, and the Taiwanese people develop a distinct identity increasingly disassociated from the mainland. The key parties involved in this conflict are China, Taiwan, and the US. Civil War in Myanmar The civil war in Myanmar escalated significantly in response to the 2021 military coup d’état and the subsequent violent crackdown on anti-coup protests. The conflict involves the National Unity Government, People’s Defence Force, Chinland Defence Force, Chin National Defence Force, Karenni Nationalities Defence Force, and other ethnic armed organizations against the State Administration Council and Tatmadaw. Europe and Eurasia War in Ukraine The war in Ukraine involves Ukraine and Russia. The conflict is over the sovereignty of Crimea and parts of eastern Ukraine, which Russia annexed in 2014. Nagorno-Karabakh Conflict The Nagorno-Karabakh conflict involves Armenia and Azerbaijan. The dispute is over the Nagorno-Karabakh region, which is internationally recognized as part of Azerbaijan but is governed by ethnic Armenians. Middle East and North Africa Conflict in Syria The conflict in Syria involves the Syrian government, opposition groups, and various international actors. The civil war began in 2011 as part of the Arab Spring protests and has since escalated into a multi-sided conflict involving numerous factions and foreign powers. Instability in Iraq The instability in Iraq involves the Iraqi government, various ethnic and religious groups, and international actors. The conflict stems from sectarian tensions, political instability, and the presence of ISIS. Israeli-Palestinian Conflict The Israeli-Palestinian conflict involves Israel, Palestine, and various international actors. The conflict is over the sovereignty of the Palestinian territories and the establishment of a Palestinian state alongside Israel. Sub-Saharan Africa Conflict in the Central African Republic The conflict in the Central African Republic involves the government, various rebel groups, and international actors. The conflict stems from political instability, ethnic tensions, and control over the country’s rich natural resources. Conflict in Ethiopia The conflict in Ethiopia involves the Ethiopian government, the Tigray People’s Liberation Front, and various ethnic and regional groups. The conflict stems from political tensions, ethnic disputes, and disagreements over the country’s system of ethnic federalism. Please note that this is a brief summary and does not cover all aspects of the conflicts. For more detailed information, please conduct further research.
CBOE:ITA
by nicktussing77
1
ITA Aero-Defence etf bottommed if 93 holds & it BO channel @103ITA has been in a downchannel even before invasion. It only overshot during invasion to make an ATH @113.37. Since then, it made an ABC corrective wave & came back down to retest channel base near the 93 zone. BULLISH CASE: it bounced after retesting channel base @93 but was stalled by ma50.. 93 is a VOLUME PROFILE zone & is the Fib 0.382 retracement level. It is also the vwap from 2009 low. If 93 holds, ITA will break above ma50 & target the 103 yellow resistance zone & try to BO of the downchannel started in May2021. 103 is the 0.382 Fib level. BEARISH CASE WARNING: if ITA fails 93 zone & break down from the channel, there is very low volume below until 85, with only a small support at 90. Measuring the H&S move from ATH will send ITA to as low as the 80 zone. Not trading advice
CBOE:ITALong
by xtremerider8
ITA - DAILY CHARTHi, today we are going to talk about ITA ETF and its current landscape. This ETF holds exposure to U.S companies that manufacture commercial and military aircraft and other defense equipment, these companies hold great dependency on rare earth materials, so its costs hold a key significance on its margins, which might get a lift due to the most recent news coming from the key producer of rare-earths. China that controls about 90% of the market, and 70% of the global production of rare earths, said this month that it's raising its annual mining quota to 132,000 tons, representing a 10% rise in comparison with last year. This decision's poised to have a significant impact on the markets due to the relevance of rare-earth is one of the most relevant elements to the modern industry, essential to the production of a wide variety of products. To have an idea, let's have a quick look at their uses on the industry: Neodymium - Used to make powerful magnets that can be use on the many products from computer hard drives to motors for electric cars Lanthanum - Used to make audiovisual components like camera lenses and other elements that work with light on the industry like cinema projection and illumination. Gadolinium - Used on the fabrication of Television screens in the medical industry by been utilized in MRI and X-ray scanning systems. Cerium - Used in the manufacture for cigarette lighters, as the Lanthanum it's used on the cinema industry, this element it’s also used by the crude refinery in its refining process. Praseodymium - Essential to producing aircraft engines and along with magnesium, can create high-strength metals named Mischmetal. Yttrium - Used in white LED lights, lasers that can cut through metals, also it's used in making of microwave filters for radars, and it's used to a catalyst in ethene polymerization. Terbium - Used in mercury lamps and to improve the safety of medical x-rays and used in laser devices. Europium - Used in printing euro banknotes, low-energy light bulbs to give natural light, also it's excellent at absorbing a neutron, valuable to control rods for nuclear reactors. With this scenario in mind, we can weight that companies and other types of assets, that have a high level of dependence on this material could have relief on their profit margins during this year that China keeps this level of production. This relief might mitigate eventual headwinds that these assets may face and boost possible bullish sentiments. Thank you for reading and leave your comments if you like. To have access to our exclusive contents, join the Traders Heaven today! Link Below. Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice. --
CBOE:ITA
by Igor-Silva