"Washington's defense appropriation is now on track to top $1 trillion years ahead of schedule. At the start of the year, it looked like things would go wrong with the defense industry as the administration started talking about defense cuts to re-route money towards immigration issues. In less than a month after that, the tone completely shifted, with President Donald Trump supporting a $1 trillion defense budget. And not only that, he continued aggressively pushing European allies to bump up their defense budget."
"Most investors who track the market start and end the year comparing every result to two yardsticks, the and the . One captures the heartbeat of corporate America, the other the pulse of its most inventive companies, and together they form the benchmark almost every fund is measured against. However, 2025 has already delivered a twist that even seasoned watchers missed."
Investors typically compare performance to broad-market and technology-focused benchmarks. In 2025 the broader market recovered from a spring tariff scare and tech giants rebounded, while specific thematic ETFs led the rally. U.S. defense appropriation accelerated toward $1 trillion, the administration shifted to support a $1 trillion defense budget, and pressure on European allies raised defense commitments, with NATO stretching a target to 5% of GDP. Wars since 2022 and 2023 contributed to sustained higher defense spending. The Global X Defense Tech ETF (SHLD) returned 82.73% year-to-date, versus the QQQ's 19.67% YTD gain.
Read at 24/7 Wall St.
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