by Ian Cooper

With geopolitical tensions boiling, investors may want to consider defense stocks.

Ukraine just launched a massive drone raid on an ammunition facility in Russia. And, according to Kyivpost.com, it “was likely the most damaging long-range attack launched by Kyiv in 30 months of combat, and possibly the most devastating air strike ever to hit Russia.”

Vladimir Putin has also warned it would be at war with the U.S. and allies if it lifts restrictions on Ukraine’s use of long-term Western weapons.

“We are not talking about allowing or not allowing the Ukrainian regime to strike Russia with these weapons,” Putin added, as quoted by NBC News. “We are talking about deciding whether NATO countries are directly involved in the military conflict or not.”

Tensions between Israel and Hezbollah are also boiling over.

All of which could require even more spending on defense. 

That being said, investors may want to jump into defense ETFs including:

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. Last trading at $154.20, we’d like to see it closer to $170.

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. Last trading at $147.41, we’d like to see it closer to $160.

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. Last trading at $113.12, we’d like to see it run to $120 short term.