Innovation Can Continue to Propel This Aerospace and Defense ETF Higher

Russia’s invasion of Ukraine was a reminder to the world about the threat of war. More and more, wars are a matter of who has the best technology at their disposal, and innovation is key in associated sectors such as aerospace/defense.

On the space front, there’s also innovation taking the sector to a whole new level: space 2.0. The advent of disruptive technology like artificial intelligence and machine learning could bring transformational change to the aerospace and defense industries.

“The defense and aerospace industries – as well as any company considering space-based applications – need technology that can provide the necessary performance, adaptability, and reliability for Space 2.0 applications,” a Military Embedded Systems article said.

“Space 2.0 represents a major shift in the development of defense and aerospace applications,” the article added. “With artificial intelligence (AI) applications moving aboard, systems must support higher processing and throughput capabilities. On-orbit processing requires an adaptive architecture so that systems can process, analyze, and reconfigure themselves to optimize performance and responsiveness.”

Trading the A&D Industry

As more innovation pours into aerospace and defense, traders can consider its growth potential. Furthermore, traders can get amplified gains worth three times the exposure of a fund’s index using the Direxion Daily Aerospace & Defense 3X Shares ETF (DFEN).

DFEN 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 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; and
  • Stay agile with liquidity to trade through rapidly changing markets.

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