Invesco Aerospace & Defense ETF is trading 3% up today as investors rotate into aerospace and defense names amid escalating conflict with Iran and the closure of the Strait of Hormuz.
- Rising geopolitical tensions and the closure of the Strait of Hormuz are pushing energy prices sharply higher, raising demand for military spending exposure.
- The ETF is outperforming broader U.S. indices, which are also trading in the green following a hotter-than-expected Producer Price Index (PPI) print.
- Defense-focused industrials are benefiting disproportionately from heightened geopolitical risk and expectations of sustained defense budgets.