Aerospace and Defense ETF Holdings Making Moves

Some of the largest components of the aerospace and defense exchange traded fund (ETF) have been making some news that could impact the iShares Dow Jones US Aerospace and Defense (ITA).

Boeing (BA) has set back the date for a possible replacement of its popular 737 jet by several years, according to the Associated Press.

It appears more time is needed for researching the underlying technology. The original 737 debuted in 1967 and has since gathered 6,000 orders, but more time is needed before entering into the "narrow-body" market. BA is 8.5% of assets in ITA.

United Technologies (UTX) may drop a $2.6 billion bid for Diebold if more financial information isn’t presented from the maker of ATMs and security systems. UTC is trying to expand its security business into the Chinese market, reports Stephen Singer for the Associated Press . Diebold’s chairman says United Technology is undervaluing the company. UTX is 9.6% of ITA.

Lockheed Martin (LMT) also said that the Department of Defense has released $2.2 billion to buy six conventional F-35A Lighnting II’s for the U.S. Airforce. A provisional approval is also granted for purchase of six short takeoff/vertical landing F-35B’s for the U.S. Marine Corps. following a senior leadership review, reports The Business Review. LMT makes up 6.8% of ITA.