US Defense ETFs May Rise as Europe's War Premium Decreases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 20 2025
0mins
Source: Benzinga
European Defense Stocks Decline: European defense stocks saw a significant drop of nearly 6% this week due to calls for peace negotiations in Ukraine and Gaza, impacting companies like Rheinmetall, Renk, Leonardo, and Saab.
U.S. Defense ETFs Perform Better: In contrast, U.S.-listed defense ETFs such as ITA, XAR, and PPA have shown more stability, with ITA rising over 33% this year, benefiting from consistent Pentagon budgets and long-term contracts.
Political Vulnerability of European Defense: The European defense sector is more susceptible to political news, while the U.S. defense industry enjoys robust support from multi-decade procurement cycles, making it less volatile.
Long-Term Spending Outlook: Experts believe that international defense budgets will remain stable despite potential reductions in conflict, with NATO countries pressured to maintain or increase spending levels, favoring U.S. defense investments.
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Analyst Views on NOC
Wall Street analysts forecast NOC stock price to fall
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 695.060
Low
630.00
Averages
684.08
High
770.00
Current: 695.060
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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