ETF Trends
ETF Trends

PowerShares Aerospace & Defense Portfolio (NYSEArca: PPA) rallied more than 2% Tuesday on heavy volume amid speculation the ETF’s move means some traders are positioning for a Romney victory in the presidential election.

PPA’s trading volume was five times the average daily pace on Tuesday afternoon.

The ETF’s rally attracted attention because Romney is expected to increase defense spending if he wins the election.

The fund hit its highest intraday price since June 2008, Barron’s reports.

The ETF’s top three holdings are Honeywell (NYSE: HOM), Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA).

Other ETFs in the category include iShares DJ US Aerospace & Defense (NYSEArca: ITA) and SPDR S&P Aerospace & Defense (NYSEArca: XAR).

PowerShares Aerospace & Defense Portfolio

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.