Aerospace, defense stocks surge after Trump's proposed $1.5 trillion military spending budget — but are investors too optimistic?

Core Insights - Aerospace and defense-focused ETFs are outperforming the S&P 500 in 2026, indicating strong investor interest in this sector [1] Group 1: Performance Metrics - The performance of aerospace and defense ETFs has shown significant gains compared to the S&P 500, highlighting a trend of increased investment in these industries [1] - Specific ETFs within the aerospace and defense sector have recorded returns that exceed those of the broader market index, suggesting a robust growth outlook for these stocks [1] Group 2: Market Trends - The current market environment appears favorable for aerospace and defense stocks, driven by factors such as increased government spending and heightened geopolitical tensions [1] - Investors are increasingly allocating capital to aerospace and defense ETFs, reflecting a shift in market sentiment towards these sectors [1]