Should I Buy Global X Defense Tech ETF (SHLD)? Finance YouTuber Analysis

The YouTuber argues that the SHLD ETF is a strong buy due to anticipated significant increases in military spending, especially under a potential Trump presidency. The fund offers diversified exposure to 49 companies across cybersecurity, data intelligence, military systems, and large defense contractors, which are expected to benefit from this trend. He notes the fund's strong past performance and the potential for smaller holdings to drive outperformance.

“So, this actually might be one of the cases where you just get exposure to the entire theme with just that one ETF. an ETF that is going to unoutperform some of the larger names by virtue of all those smaller names growing faster.”

The YouTuber suggests using the SHLD ETF to identify individual defense stocks, believing defense companies are a strong investment for the next three years due to anticipated increases in military spending and geopolitical tensions. Global defense spending is already rising significantly.

“For that, we're going to use this SHLD, the Global X Defense Tech ETF, and not necessarily just buy buy shares of this fund, but use it to mine some of those some of those stocks in that group that are going to do well on this at least three-year trend we have in tech stocks.”

The YouTuber suggests the SHLD ETF as a defensive play, noting its strong performance (up 58% this year) and its resilience during market downturns. He also recommends using it to find individual defense tech stocks within its holdings.

“On that defense side, check out the Global X Defense Tech ETF, ticker SHLD, up a surprising 58% this year and 1.8% on Friday alone.”