Boeing has soared 60% in Q4 and these aerospace & defense ETFs went along for the ride
Dec. 22, 2022 8:49 AM ET
The Boeing Company (BA), ITA, PPA, SPY IVV, LMT, NOC, HON, VOO, XAR, DFEN, ROKT, SP500, RTX
By: Jason Capul, SA News Editor
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Boosted by contract wins, including a recent major deal from United Airlines, Boeing (NYSE: BA) has risen steadily since October, soaring more than 60% in Q4. This, in turn, has contributed to an overall upswing in aerospace and defense exchange traded funds that have a heavy weighting toward the airplane maker.
For Q4, BA has exploded by 60.6%, moving from $122 a share on Oct. 3 to $195 in Thursday's premarket action. Over the closing quarter of the year the stock has pushed above its 50-, 100-, and 200-day moving averages and now trades at levels not seen since late March.
Meanwhile, BA’s Q4 surge has added fuel to 160 different exchange traded funds, which hold positions in the airplane maker. As part of this, the top five holders all experienced moves of 15%+ over the quarter.
Here are the top five ETF holders of BA: the iShares U.S. Aerospace & Defense ETF (BATS: ITA) at 7.53%, Invesco Aerospace & Defense ETF (NYSEARCA: PPA) at 6.58%, Direxion Daily Aerospace & Defense Bull 3X Shares ( DFEN) at 5.01%, SPDR S&P Kensho Final Frontiers ETF ( ROKT) at 3.64%, and the SPDR S&P Aerospace & Defense ETF ( XAR) at 3.47%.
Dating back to Oct. 3, and ITA experienced a +21.4% move, PPA jumped 20.1%, whereas the 3X leveraged DFEN soared 70.7%, ROKT picked up 15.5%, and XAR gained 19.1%.
These topside moves outdid the S&P 500 ( SP500) and its benchmark mirroring ETFs (NYSEARCA: SPY), ( IVV), and ( VOO) by a sizable amount as they gained roughly 7% over the same period.
Additionally, lending further support to ITA, PPA, DFEN, ROKT, and XAR were other key holdings that performed well in Q4 such as names like Raytheon Technologies ( RTX), Lockheed Martin ( LMT), Honeywell International ( HON), and Northrop Grumman ( NOC).
Since the start of Q4 RTX gained 20.4%, LMT jumped 25.1%, HON tracked higher by 26.5%, and NOC rose by 13.1%. |
