Trends

Defense and security

Geopolitics, drones, software and resilience are lifting security spending.

Phase: ScaleEvidence: StrongEditorial review: September 6, 2026

What is changing

Geopolitical tension and military modernization are shifting spending toward sensors, software, drones and critical defense.

Military expenditure series allow budget commitments to be compared with the security narrative.

Limits of the evidence: Budgets, contract awards, deliveries and company revenue are separate stages.

Contractors, electronics, satellites, cyber defense, logistics, drones, munitions, software and services.

Suppliers with long contracts, scarce capabilities or integration into critical systems may capture value.

13F · Q2 2026 · positions as of 30 June · delayed data

No company links have been verified for this trend within the observed universe. This does not imply a lack of exposure.

Educational examples, not recommendations. Review holdings, costs, concentration and availability before studying a vehicle.

ITA · iShares U.S. Aerospace & Defense ETF
Dedicated ETF
Dedicated ETF for observing defense, aerospace and security contractors.
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PPA · Invesco Aerospace & Defense ETF
Dedicated ETF
Alternative dedicated vehicle for contrasting defense and security exposure.
XLI · Industrial Select Sector SPDR Fund
Sector ETF
Industrial context for comparing aerospace and contractors inside the sector.
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SPY · SPDR S&P 500 ETF
Broad index
Market reference for checking whether exposure adds concentration.
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Security budgets can persist when the geopolitical map changes.

Spending depends on public policy, procurement cycles and customer concentration.

It fails if budgets moderate, programs are delayed or exposure depends on too few contracts.