“Rising global tensions have led to increasing demand for defense and military products in the Middle East, Eastern Europe, North Korea, and the East and South China Seas. This is in turn resulting in increased defense spending globally, especially in the United Arab Emirates (UAE), Saudi Arabia, South Korea, Japan, India, China, Russia,” according to Deloitte.
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Politics are helping aerospace and defense ETFs, too. A defense bill is expected to be approved Monday by a wide margin on bipartisan support as President Donald Trump, who has not voiced any intent to veto the measure, pushes for cooperation with congressional Democrats, reports Richard Lardner for the Associated Press.
As ETF Trends reported Monday, “The Senate bill would provide $640 billion for core Pentagon operations, including purchasing weapons and paying troops, along with another $60 billion for wartime missions in Afghanistan, Iraq, Syria and elsewhere. The bill would also include $8.5 billion allocated to strengthen U.S. missile and defense systems in light of North Korea’s nuclear program and missile tests that are seen as a clear threat to U.S. and its allies.”
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