One of the most interesting sectors from an investment perspective is Defence.
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The strong geopolitical tensions of the past few years have brought general attention back to this sector, which could represent a good opportunity to diversify one’s portfolio.
The Nasdaq Defence index, after having fallen at the beginning of last October towards the important graphic support at 5,200 points, started an important upward movement and rose to 6,400 points.
Quantitative analysis confirms the presence of a solid short-term bullish trend, with the main directional indicators in a long position.
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After a short settlement pause above the 6,000-5,950 points area, necessary to discharge the strong overbought registered by the most reactive oscillators, a further extension is therefore possible: the breakout of 6,400 points will open up further room for growth, with a first target at 6,480-6,485 points and a second target at 6,550 points.
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The following ETFs can be used to invest in the defence sector:
HANetf future of difense, ISIN IE000OJ5TQP4. It is an ETF with EUR 185m in assets under management and whose benchmark is the EQM NATO Future of Defence index (an index that replicates the performance of international companies operating in the military or defence industry). The ETF provides a total physical replication of the underlying and adopts an accumulation policy (with dividends being reinvested within the ETF). The total expense ratio (TER) is 0.49 per cent per annum.
VanEck Defense, ISIN IE000YE6WK5. This ETF has EUR 290m in assets under management and its benchmark is the MarketVector Global Defense Industry index (an index that replicates the performance of international companies operating in the military or defence industry). The ETF provides a total physical replication of the underlying and adopts an accumulation policy (with dividends being reinvested within the ETF). The total expense ratio (TER) is 0.55% per annum.
Copyright DMF New Media – ETFWorld.co.uk
Reproduction prohibited in any form, even partial
Disclaimer
The contents of these notes and the opinions expressed should in no way be regarded as an invitation to invest. The analyses do not constitute a solicitation to buy or sell any financial instrument.The purpose of these notes is financial analysis and investment research. Where recommendations are made, they are of a general nature, are addressed to an indistinct audience and lack the element of personalisation. Although the result of extensive analysis, the information contained in these notes may contain errors. Under no circumstances can the authors be held liable for any choices made by readers on the basis of such erroneous information.erroneous information. Anyone deciding to carry out any financial transaction on the basis of the information contained in the site does so assuming full responsibility.
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