Our first idea is an ETF whose top five holdings are: L3Harris Technologies Inc (LHX, 8.25% of assets); Lockheed Martin Corp (LMT, 7.48%), United Technologies Corp, (UTX, 7.01%), Boeing Co (BA, 6.82%), and Honeywell International Inc (HON, 6.61%). Our second recommendation is some profit-taking in a mutual fund.
Buy: Invesco Aerospace & Defense ETF (PPA)
From Forecasts & Strategies
We sold our Fidelity Select Defense & Aerospace Portfolio (FSDAX) and are buying ETF Invesco Aerospace & Defense ETF (PPA). This exchange traded fund offers even better performance over time than FSDAX and always will be open to new investors, since it’s an ETF.
Invesco Aerospace & Defense comprises approximately 50 U.S. companies that are principally engaged in the research, development, manufacture, operation and support of defense, military, homeland security and space operations, including most of the stocks held by Fidelity’s FSDAX.
New investors may want to consider buying this ETF instead of the mutual fund for maximum flexibility and return.
Mark Skousen, Forecasts & Strategies, www.markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, October 2019