(SHLD ETF)Global X Defense Tech ETF

SHLD ETF invests in global defense stocks vs ITA ETF invests in U.S. defense stocks

In 2023, Global Defense Spending reached a record high.
It reached $2.2 trillion, a 9% increase from the previous year.
Russia’s invasion of Ukraine, Israel’s conflict with Hamas, and security unrest in the Middle East have led to security unrest in neighboring countries, leading to the highest defense spending ever recorded.

Increased defense spending is a global phenomenon.
This increase in defense spending translates into profits for defense companies, which in turn drives defense stocks higher.

Recently, Korean-made weapons have become popular among some countries that are rapidly overhauling their militaries and need to import weapons. This is because they are easily compatible with U.S.-made weapons, NATO (North Atlantic Treaty Organization) standard weapons, and are cheaper and faster to produce.
This is why we should consider investing in global defense stocks in addition to U.S. defense stocks.

We can’t say “SHLD ETF is better than ITA!”, but at a time when the world is increasing defense spending and looking at different armaments, SHLD ETF could be a new alternative to ITA ETF.

(SHLD ETF)Global X Defense Tech × (ITA ETF)iShares US Aerospace & Defense

(SHLD ETF)Global X Defense Tech ETF; stockcharts.com

• Issuer : Global X; Mirae Asset Global Investment
• Inception date : September 11, 2023
• Total Expense ratio : 0.50%
• Ticker : SHLD
• Number of Holdings : 34
• P/E : 19.07
• P/B : 2.86

Source. Global X ETF(Feb-17, 2024)

Its main holdings are similar to the ITA ETF.
This is because U.S. defense stocks have a strong track record and a large market capitalization.

The top 5 holdings are BAE Systems, RTX, General Dynamics, Northrop Grumman, and Lockheed Martin. BAE Systems is a UK stock (listed on the London Stock Exchange), while the other four are invested in US stocks.
Rheinmetall AG (Rheinmetall) is the next German stock, followed by Palantir A, Huntington Ingalls, Leidos, and L3Harris. Of the top 10 holdings, eight are U.S. stocks and two are European stocks.

South Korean defense stocks that have gained global attention in recent years include Hanwha Aerospace, Korea Aerospace Industries (KAI), LIG Nexon, and Hanwha Systems, which are included further down the list.

• US Defense Stocks : 63.1%
• UK Defense Stocks : 11.5%
• France Defense Stocks : 6.0%
• Germany Defense Stocks : 5.8%
• South Korea Defense Stocks : 3.7%

Going forward, European defense stocks could benefit from increased defense spending by North Atlantic Treaty Organization (NATO) member countries, as well as by countries increasing their own defense spending.

We wish for peace and prosperity for mankind.
In world history, there have been times of war alongside times of peace, and times of war have brought sacrifice and outer and inner growth to humanity.

Humanity must inevitably prepare for war.
Individuals must either join the war or prepare for it. Investing in defense stocks is the passive war preparation that individuals can do.

THOTH Investments recommends ETFs in light of the current economic and security situation.

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