Consider playing defense with exchange traded funds (ETFs) this year.

Thomas Smicklas on Seeking Alpha says he recently spent time with Air Force officers and is firm that the military is in need of a large system makeover and equipment rehab-program covering things from boots to space weapons to protect vital communication links in space.

Despite who becomes our next president in November, they must protect and defend our vital interests here and overseas. Technology is pressing ahead so that we must keep up with the pace, or risk sinking quickly. Kevin Baker noted earlier this month that defense is one sector in particular that stands to gain if John McCain takes the White House.

iShares Dow Jones US Aerospace and Defense Index Fund (ITA) is weighted 59% in aerospace and 41% in defense. And while defense is vital, Smicklas says, aerospace is where the action is in the future.

Boeing (BA) recently reported an increase in fourth-quarter profits, and a rush of order numbers could keep ITA and the other related ETF, the PowerShares Aerospace & Defense (PPA) flying high for some time.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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