ETF of the Day - ITA Defense Stocks

The market began selling off after the noon hour as rumors started circulating about North Korea and what their next move may be. I am sure most of it is pure rumors, but what isn't rumor is that the US is sending land-based missile defense systems to Guam to protect against a North Korean attack.

The fears were enough to give investors a reason to sell and take profits after one of the best quarters in a decade. But one sector was able to dodge the bullet (no pun intended) of heavy selling.

The iShares Dow Jones US Aerospace & Defense ETF (ITA) was last up 0.6% as money was going into the true defensive companies. The top three holdings in the ETF were all up with 30 minutes left in trading: United Technologies (UTX), Boeing (BA), and Lockheed Martin (LMT).

ETF Facts

• 34 stocks in ETF
• Expense ratio of 0.46%
• Dividend yield = 1.95%
• P/E ratio = 16.58
• Beta vs. S&P 500 = 0.79
• 12-month Return: +9.4%