The U.S. Senate just passed a $738 billion defense bill that sets up a Space Force, and will provide parental leave for federal workers.
According to Military.com, the bill, which includes an earmarked $5.3 billion for emergency disaster recovery, “charts out a three-year ‘phase repeal’ of the policy that requires VA payments to survivors of fallen troops to be deducted from Defense Department survivor payments.”
The bill will also authorize $635 billion in base discretionary funds for the Pentagon, $71.5 billion in overseas contingency operations funds and $23.1 billion for nuclear programs at the Energy Department, as noted by Defense News.
It also creates the U.S. Space Force.
“We’ve done a good job on our space activity. One of the problems we’re faced with our allies is that both Russia and China had a space force, but we didn’t have one, because we had the Navy and the Air Force,” said Senate Armed Services Chairman Jim Inhofe, as quoted by CNN. “They were working very well together, but there could be better coordination.”
On the heels of this news, some of the biggest beneficiaries are defense stocks and ETFs.
That’s why investors are flocking to related names, such as:
SPDR S&P Aerospace & Defense ETF (XAR)
The SPDR S&P Aerospace & Defense ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Aerospace & Defense Select Industry Index.
iShares U.S. Aerospace & Defense ETF (ITA)
The iShares US Aerospace & Defense ETF invests in stocks in the domestic aerospace and defense sector. These stocks can include companies that manufacture both commercial and military aircraft as well as other types of defense-related equipment.
Power Shares Aerospace & Defense ETF (PPA)
The Invesco Aerospace & Defense ETF tracks a market-cap-weighted index of US-listed stocks involved in the defense, military, homeland security and space industries.