Despite last year’s pandemic, the aerospace and defense (A&D) industry recorded $874 billion in revenue, which is good news for traders and the Direxion Daily Aerospace & Defense 3X Shares ETF (DFEN).
“The Aerospace Industries Association has released a report saying the aerospace and defense industry was still able to record $874 billion in revenues, contribute $90.6 billion in exports and hired 2.09 million workers in 2020 despite the significant business and job losses as a result of the COVID-19 pandemic,” ExecutiveGov.com reported.
“This year’s report details the effects that the COVID-19 had on the A&D industry. It also provides a glimpse of the positive trends and opportunities that will form the basis of our industry’s growth in a post-pandemic world,” said Eric Fanning, president and CEO of AIA.
Global threats around the world are always a top-of-mind subject, making the need for high-level aerospace and defense equipment a must. As such, A&D will always have its slice of the country’s gross domestic product (GDP) pie regardless of whether the country is in a peace or wartime period.
“The A&D industry represented 1.8 percent, or approximately $382 billion, of the total U.S. gross domestic product, made $59 billion in combined tax contributions and issued $218.6 billion in compensation, accounting for 2 percent of the country’s total labor income,” the ExecutiveGov.com report added. “According to the AIA report, military aircraft, missiles, space systems and other defense aerospace products accounted for 15 percent, or $13.7 billion, of all A&D exports in 2020. Defense non-aerospace products, including ships, tracked vehicles and artillery represented 5 percent, or $4.1 billion, of the total annual A&D exports.”
Get 3x Exposure to A&D
DFEN, which is up close to 100% within the last 12 months, seeks daily investment results equal to 300% of the daily performance of the Dow Jones U.S. Select Aerospace & Defense Index, which attempts to measure the performance of the aerospace and defense industry sector of the U.S. equity market. Like the rest of Direxion’s roster of leveraged ETFs, DFEN gives traders the ability to:
- Magnify short-term perspective with daily 3x leverage
- Go where there’s opportunity, with bull and bear funds for both sides of the trade
- Stay agile with liquidity to trade through rapidly changing markets
For more news, information, and strategy, visit the Leveraged & Inverse Channel.
