Interestingly enough, DFEN is up 0.12% as of 4:15PM Eastern Daylight Time in after hours trading, so the bloodbath in aerospace and defense ETFs could simply be a profit-taking measure for short-term traders. If that is in fact the case, then it should have no long-term implications on the industry as a whole and the market fundamentals should remain solid in the future.

“You could say that this is just an opportunity to have some very strong stocks pull back on some profit-taking when you have one global hot spot in North Korea, which might be moderately cooling at the margins,” said Santoli. “But nobody really thinks it changes the longer-term story in terms of the aerospace cycle or defense spending plans. Obviously, those budgets are pretty well in place.”

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