iShares US Aerospace & Defense Index ETF (XAD.TO)

The iShares US Aerospace & Defense Index ETF (XAD-T) is perceived positively by experts, especially after a recent pullback in the defense sector, which presents a great opportunity for investors to add to their positions. Many analysts advocate for this hedged version of the ETF over the ITA due to various factors, including accessibility in both USD and CAD. Capturing growth in the defense sector is increasingly attractive as military spending rises globally, especially in Canada, Germany, and the Middle East, fueled by escalating conflicts. The ETF is noted for its affordability, boasting a forward P/E ratio of around 27x, suggesting significant growth potential ahead. A technical analysis reflects a solid upward trend, although caution is advised given the narrow focus of the ETF, indicating that investors should be judicious about their allocations while considering exposure to other industrial stocks.