Defense ETFs to Gain if Trump Acts on His Intervention Threat on Iran

Core Insights - The global security landscape is experiencing volatility due to the abduction of Venezuelan leader Nicolás Maduro and escalating tensions with Iran [1][2] - U.S. President Donald Trump has threatened military intervention in Iran amid domestic protests, which could lead to increased defense spending [2][3] Geopolitical Context - Iranian officials have warned that U.S. interference would cross a "red line," making American bases in the region legitimate targets [3] - The potential for military conflict between the U.S. and Iran may benefit major defense contractors through increased procurement [3] Investment Opportunities - Investors may consider adding defense exchange-traded funds (ETFs) to their watchlists to capitalize on the escalating U.S.-Iran crisis [4] - U.S. defense companies like Lockheed Martin (LMT), Northrop Grumman (NOC), and RTX Corp. (RTX) have historically seen share price increases during U.S.-Iran tensions [5][10] Defense Contractors - Lockheed Martin supplies Israel with advanced defense products, including the F-35 stealth fighter and C-130J Super Hercules aircraft [6] - Northrop Grumman's B2 stealth bombers and RTX's Tomahawk cruise missiles have been deployed in military actions against Iran [7] Broader Defense Ecosystem - The defense industry includes a range of subsystem and technology providers, such as L3Harris Technologies, which may see rising demand if the U.S.-Iran conflict escalates [8] Strategic Investment in ETFs - Defense ETFs may provide a diversified investment approach, reducing risks associated with individual contractors [9][11] - ETFs like iShares U.S. Aerospace & Defense ETF (ITA), Global X Defense Tech ETF (SHLD), and Invesco Aerospace & Defense ETF (PPA) are highlighted for their potential gains amid increased military spending [12] ETF Performance - ITA has assets of $13.86 billion, with a 60% increase over the past year and a 5.5% gain since late December 2025 [13] - SHLD has net assets of $5.63 billion, with a 90.5% increase over the past year and an 8.1% gain since late December 2025 [14] - PPA has a market value of $7.36 billion, with a 46.8% increase over the past year and a 5.8% gain since late December 2025 [15]