Aerospace and defense stock ETFs are rising on news of Northrop Grumman's $7.8 billion bid for Orbital ATK.
Aerospace and defense company stocks got a boost Monday morning on news of Northrop Grumman‘s (NOC) $7.8 billion acquisition of Orbital ATK (OA). Barron’s Jack Hough, who wrote the cover story about the new space race and highlighted Orbital as a pick back in 2015, deserves a round of applause.
Meanwhile the $4.2 billion iShares U.S. Aerospace & Defense ETF (ITA) and the $863 million SPDR S&P Aerospace & Defense ETF(XAR) climbed 1.4% and 2.1%, respectively. The SPDR ETF is up slightly more because it tracks an equal-weighted index to capture industry exposure across large-, mid-, and small-cap stocks with roughly the same weighting in Northrop and Grumman. The market-cap weighted iShares ETF has a bigger exposure to Northrop than Orbital.Discover More