Fighting ISIS is Good Business for Defense ETFs

With the increased spending on defense, investors can capitalize on the growth through sector-related ETFs, such as the iShares U.S. Aerospace & Defense ETF (NYSEArca: ITA), PowerShares Aerospace & Defense Portfolio (NYSEArca: PPA) and SPDR S&P Aerospace & Defense ETF (NYSEArca: XAR).

ITA tracks U.S. companies that manufacture commercial and military aircrafts and other defense equipment. Top components include BA 9.1%, LMT 7.8% and RTN 6.2%.

PPA also follows a similar portfolio of defense companies, including LMT 6.8%, BA 6.5% and RTN 5.9%.

XAR takes a less top heavy approach to component weights and includes LMT 4.0%, BA 4.0% and RTN 3.9%.

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iShares U.S. Aerospace & Defense ETF