ITA Vs. XAR: How To Play Donald Trump's Military Shake-Up
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(18min)CommentsSummaryThe defense sector faces volatility from geopolitical tensions, executive orders on contractor capital allocation, and a proposed surge in US military spending.Trump's executive order targets underperforming contractors, potentially restricting dividends and buybacks, but calls for a $1.5 trillion 2027 defense budget could offset near-term negatives.Major contractors like LMT, NOC, GD, BA, and RTX returned $80.25B to shareholders versus $29.57B in capex from 2022 to 2025, raising efficiency concerns.ETFs like ITA and XAR offer diversified exposure, mitigating single-company risk amid sector uncertainty and potential upside from increased defense budgets.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » flavijus/iStock via Getty Images The last few days have likely felt like whiplash for investors in the defense industry. The year started off with the US military invading Venezuela. In an article that was just published, I talked about theThis article was written byDaniel Jones36.2K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.