{"id":3491,"date":"2026-04-24T14:24:12","date_gmt":"2026-04-24T14:24:12","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/aerospace-and-defense-as-growth-drivers-for-etfs-amid-iran-war\/"},"modified":"2026-04-24T14:24:12","modified_gmt":"2026-04-24T14:24:12","slug":"aerospace-and-defense-as-growth-drivers-for-etfs-amid-iran-war","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/aerospace-and-defense-as-growth-drivers-for-etfs-amid-iran-war\/","title":{"rendered":"Aerospace and defense as growth drivers for ETFs amid Iran war"},"content":{"rendered":"\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108294171\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108294171\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000410280\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The aerospace and defense trade is taking investors deeper into space and exchange-traded funds want a part of it.<\/p>\n<p>VettaFi&#8217;s Cinthia Murphy told CNBC&#8217;s &#8220;ETF Edge&#8221; this week there are now more ETFs tackling the space theme more directly \u2014 listing the <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-2\">Procure Space ETF (UFO)<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and Global X Defense Tech ETF (SHLD) as examples.<\/p>\n<p>&#8220;They have the cybersecurity element: Satellites, communications, navigation. So, the defense theme is actually a very colorful theme nowadays. It has a lot of interesting names,&#8221; the firm&#8217;s director of research said. &#8220;It really isn&#8217;t just about <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-4\">Lockheed Martin<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and some of the traditional names that you find in ITA [<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-5\">iShares US Aerospace &amp; Defense ETF<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>].&#8221;<\/p>\n<p>As of Thursday&#8217;s close, the Procure Space ETF is up almost 19% since the Iran War started on Feb. 28 while the Global X Defense Tech ETF is off 8%. <\/p>\n<p>Meanwhile, the more traditional iShares US Aerospace &amp; Defense ETF is down 10% in the same period. Its website lists the top holdings as <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-6\">GE Aerospace<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-7\">RTX Corp<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-8\">Boeing<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>.<\/p>\n<p>Murphy expects investor interest in aerospace and defense stocks to persist long after the Iran war is resolved. <\/p>\n<p>&#8220;Any time you have geopolitical heat, it puts this kind of theme on the map,&#8221; said Murphy. &#8220;But it&#8217;s another big growth area because there&#8217;s so much new technology coming up and so much investment coming into this space. A lot of governments making commitments for much more investments in the next five to ten years.&#8221;<\/p>\n<p>Murphy suggests historic interest in the SpaceX initial public offering, which his largely expected in June, is firing up even more interest in the space.<\/p>\n<p>&#8220;One of the things we&#8217;ve spoken about the most this year is about space exploration and space investment given we&#8217;re about to see the SpaceX IPO,&#8221; added Murphy.<\/p>\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-10\">SS&amp;C Technologies<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>&#8216; Paul Baiocchi is also bullish on aerospace and defense names. He predicts a monster ramp up in defense budget around the world will generate solid returns for the group.<\/p>\n<p>&#8220;All of these things are converging for the same limited scarce resources,&#8221; the financial technology firm&#8217;s head of fund sales and strategy said in the same interview. &#8220;Near-term, medium-term [and] long-term, commodities allocations, energy infrastructure [and] electrification infrastructure all stand to benefit from the massive amount of investment that&#8217;s coming from both the public and private sectors.&#8221;<\/p>\n<p>Plus, he sees artificial intelligence playing a key role.   <\/p>\n<p>&#8220;The bottleneck for AI might be chips, but it&#8217;s also power and transmission and the raw materials that go into construction,&#8221; Baiocchi said. &#8220;If you look at defense, that&#8217;s also part of the constrain is the availability of the rare earths.&#8221;<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"SpecialReportArticle-GooglePreferredSource-6\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The aerospace and defense trade is taking investors deeper into space and exchange-traded funds want a part of it. VettaFi&#8217;s Cinthia Murphy told CNBC&#8217;s &#8220;ETF Edge&#8221; this week there are now more ETFs tackling the space theme more directly \u2014 listing the Procure Space ETF (UFO) and Global X Defense Tech ETF (SHLD) as examples. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[2179,2942,3234,2196,770,2954,760],"class_list":["post-3491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-aerospace","tag-defense","tag-drivers","tag-etfs","tag-growth","tag-iran","tag-war"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=3491"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/3492"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=3491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=3491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=3491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}