Aerospace and defense stocks are part of the broader industrial sector and have been important drivers of the sector’s performance over the past year. In fact, aerospace and defense names have been industrial leaders.
“Beyond fiscal 2018, we think U.S. defense budgets are headed higher, but we’re skeptical when we hear claims of historic defense spending increases. Including Overseas Contingency Operations funding, we anticipate average annual growth of 3% for the Defense Department budget through 2021,” according to Morningstar.
Traders looking for a more aggressive play on aerospace equities can consider the Direxion Daily Aerospace & Defense Bull 3X Shares (NYSEARCA: DFEN). DFEN, which debuted earlier this year, seeks to deliver triple the daily returns of the Dow Jones U.S. Select Aerospace & Defense Index.
For more information on the defense industry, visit our aerospace & defense category.