Defense ETF (SHLD) Hits New 52-Week High
For investors seeking momentum: Global X Defense Tech ETF SHLD is probably on the radar. The fund just hit a 52-week high and is up 57.09% from its 52-week low price of $32.42/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SHLD in Focus
The underlying Global X Defense Tech Index seeks to provide exposure to defense technology companies that are positioned to benefit from technology, services, systems and hardware that cater to the defense and military sector. The product charges 50 bps in annual fees (See: All Industrials ETFs).
Why the Move?
The Aerospace and Defense sector has been an area to watch lately, given the complicated geopolitical landscape. Increased defense spending by global economies has also boosted the fund’s prospects. Global military spending rose to $2.72 trillion in 2024, marking a record 9.4% increase over 2023, the sharpest annual rise since the end of the Cold War.
Additionally, trying to become less reliant on the United States, Europe is strengthening its military capabilities and significantly increasing its defense spending, which bodes well for the fund.
More Gains Ahead?
SHLD is expected to continue its strong performance in the near term, with a positive weighted alpha of 60.30 (as per Barchart.com), which gives cues of a further rally.
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Global X Defense Tech ETF (SHLD): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
