In the face of these fears, however, ITA and PPA have managed to largely brush off weakness. Over the past month, ITA has jumped by over 1%. PPA, meanwhile, has seen losses but the fund's decline has been less than 1%.

Continued budget wrangling could pose and issue for aerospace contractors down the road. Luckily for investors, both ITA and PPA are well positioned to weather a potential upheaval. Ample exposure to after-market suppliers will ensure stability if companies like Boeing and Lockheed are forced to pare back their production schedules.

As analysts have noted, the products and services provided by companies such as Goodrich, Precision Castparts ( PCP) and Rockwell Collins ( COL) will become increasingly sought after as the government and companies work to keep older aircrafts in service.

When it comes to taking to the skies, I encourage investors to skip the troubled airlines. The aerospace and defense industry is a better bet here.

Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management did not own any equities mentioned.

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