Defense ETFs, like the iShares U.S. Aerospace & Defense ETF (ITA) could run.
All after Russian President Vladimir Putin upped the stakes in a war against Ukraine—which brings increased attention to defense contractors. Reportedly, Putin called up another 300,000 soldiers and reiterated his aggressive stance against Ukraine and its Western allies, claiming Russia is fighting against the “collective West,” says StreetInsider.com.
Putin also fueled speculation he could use nuclear weapons.
In fact, as noted by CNBC, “Putin has alluded to Russia’s nuclear weaponry at various points during the conflict with Ukraine but there are doubts over whether Moscow would actually resort to deploying such a weapon, with analysts saying it could be tantamount to starting a third world war.”
While this is the last thing we need, tensions are mounting — and as a result, defense stocks and ETFs such as the iShares U.S. Aerospace & Defense ETF (ITA) could benefit.