3 Best Defense ETFs as U.S. Prepares to Increase Strike Intensity

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U.S. Defense Secretary Pete Hegseth said on Tuesday that the United States was preparing for what he described as the most intense round of strikes yet inside Iran. Speaking at the Pentagon, Hegseth said that Iran was struggling after ten days of fighting in what the U.S. calls Operation Epic Fury.

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He also noted that in the past 24 hours, Iran had fired the fewest missiles of the war so far, which suggests that its military capabilities may be weakening. At the same time, he criticized Iran for launching attacks on several Gulf countries that had not provoked the conflict. As a result, Hegseth said that the U.S. plans to increase its military pressure by deploying more fighter jets and bombers to conduct airstrikes.

Military Objectives in Iran

According to Hegseth, the operation is focused on three main objectives:

  1. Destroying Iran’s existing missile stockpiles and its ability to produce more missiles

  2. Eliminating Iran’s naval capabilities

  3. Permanently preventing Iran from obtaining nuclear weapons

Hegseth added that the military campaign will continue until those goals are achieved. Meanwhile, he also stressed that the U.S. does not plan to become involved in nation-building projects similar to past wars in Iraq or Afghanistan.

Nevertheless, the increase in military strikes has caused investors to move money into defense ETFs as a way to hedge against the possibility of a prolonged conflict. As a result, Wall Street sees the iShares U.S. Aerospace & Defense ETF ITA -0.07% ▼ , the SPDR S&P Aerospace & Defense ETF XAR -0.16% ▼ , and the ARK Space Exploration & Innovation ETF ARKX -0.13% ▼ as Buys with solid upside potential, as pictured below.

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