3 Best Defense ETFs to Watch as Iran War Costs Top $11B in Just 6 Days

The three best defense ETFs for investors to watch as a hedge against a prolonged conflict with Iran are:

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

2. The iShares U.S. Aerospace & Defense ETF ITA -3.05% ▼

3. The SPDR S&P Aerospace & Defense ETF XAR -2.69% ▼

4. The Global X Defense Tech ETF SHLD +0.69% ▲

In fact, these ETFs are drawing attention as the cost of the U.S. military campaign in Iran continues to rise. According to a classified briefing given to senators this week, the first six days of Operation Epic Fury have already cost American taxpayers about $11.3 billion. However, officials also said that this estimate does not include several other war-related expenses, which means the final cost will likely be much higher.

Meanwhile, the fighting itself continues to intensify. U.S. Central Command reported that American forces have carried out about 6,000 strikes on targets inside Iran since the conflict began. On the other hand, Iran has responded mostly by attacking Israel and several U.S. allies in the Gulf region, including Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, and Qatar, all of which host American troops. So far, Iranian attacks have killed seven U.S. service members and injured around 140 others, with eight of those troops still listed in serious condition.

At the same time, President Donald Trump said during a campaign-style event in Kentucky that the U.S. has essentially “won” the war, but also said the country must “finish the job.” However, critics have argued that his statements about the conflict have changed, although the White House says the administration’s goals have remained the same. According to officials, those goals include preventing Iran from obtaining nuclear weapons, weakening its ballistic missile capabilities, damaging its navy, and stopping it from supporting militant proxy groups.

Which Defense ETF Is the Better Buy?

Turning to Wall Street, out of the three ETFs mentioned above, analysts think that XAR has the most room to run. In fact, XAR’s price target of $322.25 per share implies 19.1% upside potential.

Disclaimer & DisclosureReport an Issue