The United Nations and other allied states around the world have been supporting Ukraine with military supplies since the very early days of the war. With the war in Europe still raging more than a year after it began, allied munitions stockpiles and military supplies are starting to get thin.
But, at some point, these countries’ reserves will reach a depleted level they are no longer comfortable with and be forced to restock. Let’s be honest; that point has already come and gone.
So today, countries in Europe and America are not only still giving Ukraine military aid, but also replacing their arms.
But something similar is also occurring in Asia, as China continues with aggressive talk pertaining to Taiwan. Furthermore, China has been heavily spending on its own military and set its defense spending growth at 7.2% in 2023, in line with where it was in 2022.
Even here in the U.S., the projected 2024 budget for defense spending came in at $842 billion, or $26 billion higher than where it was in 2023 and more than $100 billion higher than in 2022.
Even if the war weren’t taking place in Europe today, there would likely be an arms race around the world, and many believe it will only get worse since geopolitical tensions are still brewing in Asia.
So, how can you play this arms race?
Buy Defense and Aerospace Exchange Traded Funds and relax.
Not sure which ones to buy? Let’s take a look at a few.
The first ETF I would look at is the iShares U.S. Aerospace & Defense ETF (ITA).
ITA is the largest Defense and Aerospace ETF, with just over $6 billion in assets under management. ITA also has a reasonable expense ratio at 0.39% and has had a…
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