Defence stocks attract attention as spending climbs + MORE Apr 10th

With global hostilities rising, experts say investors should take a fresh look at defence companies. The defence industry is much broader than weapons-focused firms. Investing professionals say there are a range of options for retail investors to gain exposure to the sector, depending on their comfort level—while some people prefer to steer clear of the industry for political or ethical reasons. 

“Yes, we have these two hot wars going on, but I think we’ve had a reset of globalization and the Pax Americana in a significant way since Trump 2.0 began, such that military spending is going to be structurally higher,” said Brian Madden, chief investment officer with First Avenue Investment Counsel. Since the outset of the Iran war in February, he said certain parts of the market that typically perform well during times of conflict haven’t done so, including defence companies. 

Defence stocks gain on rising global spending

Madden said the case for defence stocks goes beyond the current conflict in the Middle East and highlighted factors including the war in Ukraine continuing into its fourth year, the strike on Iran’s nuclear facilities by the U…

Every year, we ask our Best ETFs judges to choose one ETF that might not top any category—or even qualify—but stands out as a strong long-term hold, whether for building wealth or protecting against a wealth-destroying crash. You know, what would they pick if they found themselves stranded on a tropical island for an extended period?

This is what they told us.

Tony Dong: Global X Defence Tech Index ETF (NYSEArca:SHLD) 

“I picked XAD [iShares U.S. Aerospace & Defense Index ETF] in 2024, citing increased geopolitical tensions and a global rearmament cycle. SHLD is a far more sensible defense ETF: it’s not U.S.-focused, lacks aerospace bias, its top holdings are not dominated by a handful of prime contractors, and it broadens the scope to cybersecurity and military intelligence too.”

Mark Seed: Global X All-Equity Asset Allocation ETF (TSX:HEQT)

“If I really, really had to pick just one ETF, this is it. I continue to like the small tech exposure in HEQT for do-it-yourself investors that have a long investing time horizon and do not want to deal with a multi-fund solution in their portfolio…

Here’s a round-up of news for Canadian investors this week.

Cogeco

Roots

BlackBerry

Featured RRSP Accounts

featured

EQ Bank

Build your retirement savings with 1.50% interest, tax-deferred contributions and zero fees.

go to site

featured

Registered GIC rate

Earn a guaranteed 2.75% in your RRSP when you lock in for 1 year.

go to site

Best RRSP rates

See our ranking of the best RRSP accounts and rates available in Canada.

read now

Why trust us
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada…