First Trust Launches Aerospace & Defense ETF

First Trust Advisors has launched a new exchange traded fund, the First Trust Indxx Aerospace & Defense ETF (NYSE Arca: MISL). According to the asset manager, the fund seeks investment results that correspond generally to the price and yield, before the fund’s fees and expenses, of the Indxx US Aerospace & Defense Index.

MISL provides exposure to U.S. companies that derive at least 50% of their revenues from business activities associated with advanced and traditional aerospace and defense sub-themes. This includes hypersonic, directed energy, space technologies, unmanned aerial vehicle/advanced air mobility, autonomous, cybersecurity, and C5ISR systems.

“The aerospace and defense industry has been on the forefront of innovation for decades, providing aircraft, ships, spacecraft, weapon systems, and defense equipment to both the government and private enterprises,” said Ryan Issakainen, senior vice president and ETF strategist at First Trust, in a news release. “As technological advancements accelerate, we believe there are strong incentives for continued investments to be made in each of these areas, and we are excited to offer MISL as a way to gain exposure to stocks that may benefit from the growth and maturity of this industry.”

Rahul Sen Sharma, managing partner at index provider Indxx, added that “the U.S. aerospace and defense industry is ripe with opportunity, as innovation and technological solutions are advancing rapidly across the entire sector. This index… targets not only traditional aerospace and defense companies but also those that are on the cutting edge of innovation and have the potential to transform the entire industry on a global basis.”

MISL currently has 33 holdings, including Lockheed Martin Corp. (8.85% of the fund’s holdings), General Dynamics Corp. (8.84%), and Northrop Grumman Corp. (8.71%). The fund has an expense ratio of 0.60%.

For more information, please visit VettaFi.

https://www.etftrends.com/first-trust-launches-aerospace-defense-etf-with-misl/

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