Boeing Puts a Ding in Defense ETFs’ Performance
October 15th at 12:00pm by Tom Lydon
Defense-related exchange traded funds (ETFs) such as PowerShares Aerospace & Defense (PPA) and iShares Dow Jones U.S. Aerospace & Defense (ITA) generally have been strong performers this year as the Iraq war continues. In fact, as Gary Gordon for ETF Expert notes, these two ETFs finished last week near record highs. Currently, PPA is up 30.1% year-to-date, and ITA is up 33.1% year-to-date.
However, both these ETFs are down today, and one of the factors behind the dip could be Boeing’s (BA) recent announcement that the 787 Dreamliner will be delayed by six months because it’s struggling to assemble the revolutionary new aircraft. It’s Boeing’s worst delivery delay ever, reports Marilyn Adams for USA Today. Boeing’s stock has been down ever since the announcement last week. Boeing is a top holding in both defense ETFs, making up 10.0% of ITA and 5.6% of PPA.
