The Zhitong Finance App learned that after two years of breakneck gains, US defense stocks have faced bottlenecks this year. Since this year, stock performance has lagged far behind the market, from tanks, fighter jets, and naval vessels to manufacturers of missiles, drones, and other defense technology. An indicator measuring the performance of stocks in this sector — the S&P Composite 1500 Aerospace and Defense Index — has declined 13% since February 27 (the eve of the outbreak of the US-Israel conflict). Over the same period, the S&P 500 index rose nearly 10%. The fund tracking the industry — iShares American Aerospace and Defense ETF — is currently expected to see net capital outflows for two consecutive quarters, which will be the first time since 2023.

The Zhitong Finance App learned that after two years of breakneck gains, US defense stocks have faced bottlenecks this year. Since this year, stock performance has lagged far behind the market, from tanks, fighter jets, and naval vessels to manufacturers of missiles, drones, and other defense technology. An indicator measuring the performance of stocks in this sector — the S&P Composite 1500 Aerospace and Defense Index — has declined 13% since February 27 (the eve of the outbreak of the US-Israel conflict). Over the same period, the S&P 500 index rose nearly 10%. The fund tracking the industry — iShares American Aerospace and Defense ETF — is currently expected to see net capital outflows for two consecutive quarters, which will be the first time since 2023.