ITA: The ETF Taking Off Amid Rising Global Tensions

Global Tensions Are Rising (and So Are Defense Budgets)

The world’s feeling a little more tense lately.

In recent weeks, headlines have been filled with geopolitical rumblings. The U.S. is reportedly eyeing influence over Greenland, trade tariffs on European allies are back in the news, and global institutions like the IMF are warning that geopolitical risks are one of the biggest threats to markets and growth in 2026.

Even if none of these lead to full-blown conflict, one thing is clear: uncertainty is rising.

And when countries feel uncertain, they tend to do one thing… ramp up defense spending.

That’s why defense and aerospace companies are starting to pop up on more investors’ radar.

And instead of trying to pick one or two names, you can get broad exposure through a single ETF: ITA.

iShares U.S. Aerospace & Defense ETF (ITA)

The iShares U.S. Aerospace & Defense ETF (Ticker: ITA) tracks a basket of U.S. companies involved in defense, aerospace, and related technologies.

Top holdings include industry giants like:

• Lockheed Martin (LMT)

• Raytheon Technologies (RTX)

• Northrop Grumman (NOC)

• General Dynamics (GD)

• Boeing (BA)

These are the backbone of U.S. defense contracts and often benefit directly from increased government spending on military, aviation, cybersecurity, and space programs.

Why ITA Could Be Worth Watching Now

1. Rising Global Defense Budgets
From the U.S. to Europe to Asia, many nations are quietly raising their defense spending. It’s not just about war, it’s about readiness, deterrence, and modernizing aging military tech. This steady demand acts as a tailwind for the companies inside ITA.

2. Broader Geopolitical Trends
As countries reposition themselves on the global stage, defense becomes a natural area of focus. The recent chatter about U.S.–Europe tensions, Greenland, and renewed tariffs adds fuel to the fire.

3. Exposure Without Picking Winners
Rather than betting on a single defense contractor, ITA gives you exposure to the entire sector. If defense spending rises overall, chances are the ETF benefits across the board.

4. Not Just About Conflict
Many companies inside ITA are involved in aerospace, satellite systems, and even space exploration. These aren’t just “war stocks”, they’re also tech-forward, long-term innovation plays

Technical Setup

• Uptrend remains firmly intact with all 3 moving averages (MA) still heading up

• Price has recently found a new higher support around 220, which was previously the resistance since Oct 2025

• Immediate upside target towards 250, where some profit-taking could return

  • Targets to be revised higher if 250 is firmly broken

• Currently, there is a 1GT bearish signal, indicating that some selling pressure has indeed returned

• If price retrace back towards 220 support zone, it could a zone for potential accumulation on dips, provided that 20d MA is not turning down

Final Take: A Strategic ETF for Uncertain Times

ITA won’t get the same attention as flashy tech names and that’s exactly why it may be worth a look.

In times of rising geopolitical risk, defense becomes a priority. ITA offers simple, diversified access to the biggest U.S. players in this space. Whether you're looking for a hedge against market volatility or want to ride a longer-term global trend, ITA could be a strong addition to your watchlist.

As always, don’t chase hype. Do your homework, manage risk, and decide what role (if any) a defense ETF should play in your portfolio.

Hope you have found the above stocks useful 😃 

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- Joey, Bervyn & Zee

Sources:
1. iShares U.S. Aerospace & Defense ETF. Available at: https://www.ishares.com/us/products/239502/ishares-us-aerospace-defense-etf

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