To The Moon

🌟🌟🌟The world woke up to a major geopolitical shock as Israel launched pre-emptive airstrikes against Iranian nuclear and missile facilities.  The attack has sent crude oil prices soaring while defense stocks have surged amid rising uncertainty.  Investors are now scrambling to adjust their portfolios, seeking safe haven assets and sectors poised to benefit from the unfolding crisis.

ETFs To Watch Amid Rising Tensions 

If you are considering investment opportunities, here are some ETFs  that could benefit from the geopolitical tension.  They form part of my diversified portfolio. 

Energy ETF

Rising oil prices could boost ETFs like XLE $Energy Select Sector SPDR Fund(XLE)$ .  XLE is a popular ETF that provides exposure to the largest US Energy companies, primarily in oil, gas and energy equipment. 

XLE's top 10 holdings include Exxon Mobil, Chevron, Conoco Phillips, Williams Companies and many more.  The expense ratio is 0.08% which is low compared to its competitors.  

XLE is also known for its strong dividend payouts, making it attractive for income focused investors.   The current dividend yield is 3.36% paid every 3 months.  The next dividend is due in June 2025.

Defense ETF 

$Global X Defense Tech ETF(SHLD)$ is designed to provide exposure to companies involved in defense technologies, cybersecurity and military applications. 

SHLD's key holdings include a mix of major defense contractors and tech driven military firms.   They are BAE Systems, Rheinmetall AG, Lockheed Martin, General Dynamics, Palantir $Palantir Technologies Inc.(PLTR)$  and Saab AB. 

The expense ratio is 0.50%.  Current dividend yield is 0.35% paid every 6 months.  The next dividend is due in June 2025.

Performance wise, SHLD is up 55.8% year todate and in 2024 it has risen by 74%.

Gold ETF 

$iShares Gold Trust(IAU)$  is a strong contender for investors seeking a safe haven asset amid geo political uncertainty.  Historically Gold has been a go to hedge during crisis and the Israel Iran conflict has driven gold prices higher, benefiting Gold ETFs like IAU. 

IAU's expense ratio is 0.25% which is low compared to other competing ETFs.  It is the 2nd largest Gold ETF with Assets Under Management of USD 46.81 billion.

Gold is also used as a hedge against inflation, making IAU attractive in uncertain economic conditions. 

IAU is up 27% year todate and in 2024, IAU has risen by 46%.

As an ETF, IAU provides easy exposure to Gold without the need to physically hold Gold Billion nor worry about its safe storage. 

Looking Ahead 

As the dust settles on Israel's military strike, markets remain on edge.  With crude oil prices spiking and defense stocks gaining momentum, investors must weigh the potential for continued volatility.  

The Middle East's evolving situation could drive oil and military ETFs higher but risks remain.

While war is never welcome, investors who positioned wisely can navigate the chaos.  Staying informed and agile will be crucial as global tensions unfold. 

@Tiger_comments  @TigerStars  @Daily_Discussion  @Tiger_SG  @CaptainTiger  @TigerClub