Core Insights - The Pentagon has approved an $8.6 billion contract for Boeing to supply the Israeli Air Force with advanced F-15IA fighter jets, reinforcing Boeing's position in the defense sector [1][11] - Investors may consider defense ETFs as a less volatile alternative to direct investment in Boeing, allowing exposure to the defense sector's growth without the risks associated with Boeing's specific challenges [2][8] Contract Details - The contract involves the production and delivery of 25 F-15IA aircraft, with an option for an additional 25, featuring long-range strike capabilities and a capacity to carry up to 14 tons of munitions [3] - The deal was finalized following a meeting between President Trump and Prime Minister Netanyahu, highlighting U.S. support for Israel amid regional tensions [4] - The project is expected to be completed by December 31, 2035, providing Boeing with a long-term production timeline [4] Financial Performance - The contract is anticipated to enhance the performance of Boeing's Defense, Space & Security (BDS) segment, which reported a nearly 25% year-over-year revenue increase in the last quarter [5] - Despite the revenue growth, the BDS unit's operating profit margin was only 1.7% in Q3 2025, following significant losses in 2024 due to cost overruns on previous contracts [6][11] Investment Alternatives - Defense ETFs have shown strong performance, with increases ranging from 38% to 48%, providing a diversified investment option that includes Boeing and other defense contractors [8][11] - Specific ETFs to consider include: - State Street SPDR S&P Aerospace & Defense ETF (XAR), which has surged 43% over the past year and charges 35 basis points in fees [12] - iShares U.S. Aerospace & Defense ETF (ITA), which has increased by 47.8% and charges 38 basis points in fees [13] - Invesco Aerospace & Defense ETF (PPA), which has risen 38.6% year to date and charges 58 basis points in fees [14]