ZACKS·2025-11-21 16:15Group 1: U.S.-India Defense Deal - The United States has approved $93 million in weapon sales to India, including 100 Javelin anti-tank missiles and 216 Excalibur precision-guided artillery rounds, aimed at enhancing India's defense capabilities [1] - This transaction is expected to boost revenue generation prospects for American defense companies involved in manufacturing these advanced weapon systems [1] Group 2: Benefiting Companies - Javelin anti-tank missiles are produced by a joint venture between Lockheed Martin (LMT) and RTX Corp.'s (RTX) Raytheon unit, known for their effectiveness against modern battle tanks [3] - Excalibur munitions, primarily produced by Raytheon and BAE Systems (BAESY), are GPS-guided artillery shells that offer high accuracy and reduced collateral damage [4] Group 3: Investment Strategy - Investing in defense-focused Exchange Traded Funds (ETFs) is recommended over individual stocks due to the inherent risks associated with single equities [5] - Individual defense stocks like Lockheed Martin and BAE Systems face unique financial and operational challenges, such as high debt-to-equity ratios and stock volatility [6][7] Group 4: Recommended ETFs - Global X Defense Tech ETF (SHLD) has net assets of $4.84 billion, with significant weightings in RTX (8.74%), LMT (7.35%), and BAESY (6.64%), and has surged 66.3% year to date [9][10] - Invesco Aerospace & Defense ETF (PPA) offers exposure to 61 companies, with RTX (8.72%) and LMT (7.08%) as top holdings, and has increased by 27.9% year to date [11] - iShares U.S. Aerospace & Defense ETF (ITA) has net assets of $11.60 billion, featuring RTX (16.12%) and LMT (4.45%) among its holdings, with a year-to-date surge of 37.6% [12]