"Defense stocks are gaining traction in 2025, driven by heightened global security concerns and robust investor interest. A post from The Kobeissi Letter on X highlights FactSet data showing aerospace and defense exchange-traded fund (ETF) inflows reaching $8.2 billion in the first three quarters of 2025 - a 573% surge compared to 2024. This spike reflects growing unease over geopolitical tensions and optimism about long-term sector growth, fueled by increased defense spending and new fund launches."
"In 2025, XAR has delivered impressive year-to-date gains, up more than 44% year-to-date, reflecting the sector's strength amid rising global tensions. Key holdings driving this performance include its top two holdings, space and defense stock Rocket Lab ( NASDAQ:RKLB ) - up 171% in 2025 - and unmanned dronemaker AeroVironment ( NASDAQ:AVAV ), up 133%. Among more traditional defense contractors, XAR has positions in Kratos Defense & Security ( NASDAQ:KTOS ) and Lockheed Martin ( )."
Aerospace and defense sector activity accelerated in 2025 as global security concerns boosted investor interest and ETF inflows. FactSet data shows $8.2 billion flowed into aerospace and defense ETFs in the first three quarters of 2025, a 573% increase versus 2024. Seventeen new aerospace & defense ETFs debuted in 2025 compared with two in 2024. The SPDR S&P Aerospace & Defense ETF (XAR) gained over 44% year-to-date, driven by strong performances from Rocket Lab and AeroVironment, alongside holdings in Kratos and Lockheed Martin amid rising defense spending.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]