Two Top ETFs to Own if War Breaks Out with Iran


 
 
10:12 07/21/2019

It’s tough to say what’s really going on between the U.S. and Iran.

One day, Iranian President Hassan Roubini says his country is ready to talk. 

“We have always believed in talks.  If they lift sanctions, end the imposed economic pressure and return to the deal, we are ready to hold talks with America today, right now, and anywhere,” said the Iranian president, as quoted by Reuters.

The next day, the U.S. reports the USS Boxer downed an Iranian drone that came within 1,000 yards of the Navy ship after ignoring “multiple calls to stand down.”  In addition to the downed drone, the U.S. Navy also said an Iranian navy Bell 212 helicopter flew close to the USS Boxer, as well before being chased away.

Iranian speed boats were also reportedly in the area.  

However, Iran Has Denied the Reports

According to Iran’s Ministry of Foreign Affairs, Iran has “no information about losing a drone.”

'Contrary to Trump's delusional and groundless claim, all drones belonging to the Islamic Republic of Iran in the Persian Gulf and the Strait of Hormuz, including the one mentioned by the US President, have returned to their bases safe and sound after carrying out their scheduled surveillance and control operations,' Brigadier General Abolfazl Shekarchi said, according to MEHR News, as quoted by Reuters.

All, as tensions between the two countries continues to deteriorate after Iran shot down a U.S. drone just a month earlier.  While war is not certain, some of the hottest stocks to keep an eye on are those involved with oil and defense stocks.

Two Hot ETFs that Could Run on Heightened Tensions

SPDR Energy Select Sector ETF XLE  seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Energy Select Sector Index. It also seeks to provide precise exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries.

iShares U.S. Aerospace & Defense ETF (ITA) 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. It has holdings in Boeing, United Technologies Corporation, Lockheed Martin, Raytheon, General Dynamics, and Northrop Grumman for example.

 

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