💥 Defense Sector ETFs
Geopolitical tensions (e.g., Middle East, global security) drive interest in defense/aerospace ETFs, which outperformed broader markets in 2025 and continue strong into 2026.
Invesco Aerospace & Defense ETF (PPA): ~$7.9B AUM, broad exposure to primes like Lockheed Martin, Northrop Grumman.
SPDR S&P Aerospace & Defense ETF (XAR): ~$5.7B AUM, focused on U.S. aerospace/defense.
iShares U.S. Aerospace & Defense ETF (ITA): Popular for traditional defense plays.
Emerging/global options: HANetf Future of Defence (NATP), VanEck Defense (DFNG) for tech/cyber/space tilt.
💥 Utility Sector ETFs
Utilities provide defensive, dividend-heavy exposure (essential services like power/water), performing steadily with inflation hedging and AI/data center power demand.
Utilities Select Sector SPDR ETF (XLU): Largest/most liquid, ~$22B+ AUM, tracks major U.S. utilities.
Vanguard Utilities ETF (VPU): Low-cost (0.10% expense), ~$10B AUM.
Fidelity MSCI Utilities ETF (FUTY): ~$2–$2.5B AUM, similar broad exposure.
Others like iShares U.S. Utilities ETF (IDU) for diversified plays.