Don Vialoux IShares Aero & Def. ETF ITA-N COMMENT Jan 20, 2017

Defence is expensive. This ETF is aerospace and defence. If you want to be more precise, Raytheon (RTN-N) is a good way, which is focused on cyber defence, missile defence, has the most international sales exposure. He likes the theme of defence spending. You take out some of the idiosyncratic risks by buying this one.

ITA-N vs. XAR-N He knows the defence sector. A problem in defence is the huge run-up in Boeing, which dominates defence. ITA has a cap system in place to deal with this over-concentration in a few defence stocks, but XAR is odd because it's equal-weighted, therefore carries more risk. He prefers ITA.

(A Top Pick September 12/17 Up 25%) He still likes this ETF. It has technically shown another bullish breakout and he is considering re-entering this again soon. Increased foreign spending on security will continue to make this a winner.

It is made up of biggest US defence contractors. Defence spending will continue to be a big thing, particularly under the Trump regime. Has come down significantly the last few weeks and is a good buying opportunity.

Boeing is the second-largest holding in this ETF. Today's announcement won't have a major impact. Use this dip to buy or enter. They just announced production delays.

Good option for hawkish investors.
Low weighting in portfolio smart idea given nature of ETF.
If conflict persists in Europe - a good option.

ITA has been on the verge of a technical breakout since February with resistance at $116-117. It failed seven times, hasn't moved up. So, he sold it.

Exposure to some of the biggest names. A lot of defense contractors, performed well with everything going on out there in the world. The only name in there that he's not wild about is BA, it's had trouble.