Why to watch the Defence ETF by iShares ITA amid the strikes in Isreal

In times of duress, defence companies' earnings and shares historically rally.

Since the attacks in Israel, the world's biggest Defense ETF, the iShares ITA, notched its best gains in three years, with the ETF up 6% in three days, largely led by Lockheed Martin ($LMT), Northrop Grumman ($NOC), and L3Harris ($LHX), surging 8 to 12 per cent each.

Consider that the US government will need to increase defence spending as it needs to build ammunition supply, missiles, and anti-missile systems, all at quicker rates and higher volumes, just to replenish US stockpiles and to continue to support Ukraine, and now perhaps Israel.

Companies like Lockheed Martin ($LMT) are already ramping up production to replenish US stockpiles and to support Ukraine.

Currently, the US provides $3.3 billion annually in foreign military finance to Israel and $500 million for missile defence. And now the thinking is that the US Congress will increase its total defence spending.

Original post reference: https://www.moomoo.com/community/feed/111226215268358