Be mindful of the premium or discount offered when purchasing this or any other closed-end fund. There is an absolute guarantee that the bombs will be dropping between now and the November elections, at least in political attack ads. Millions of dollars will be spent by super PACs and candidates in the Republican Party un-civil war before a nominee is chosen to face the onslaught of television commercial attack ads from the Obama re-election machine. Expense Ratio: 2.44% Six Month Total Return: 8.5% Rated "C+" by TheStreet Ratings:
The military defense contractors are the second investible group wishing to let slip the dogs of war. With Iraq done and Afghanistan wrapping up, the military industrial complex needs a new war to push back against the forces of fiscal constraint trying to reduce the annual budget deficit.
8. iShares Dow Jones US Aerospace & Defense Index Fund
iShares Dow Jones US Aerospace & Defense Index Fund ( ITA) seeks investment results that correspond generally to the price and yield performance before fees and expenses of the Dow Jones U.S. Select Aerospace & Defense Index. Key holdings include United Technologies Corp ( UTX), Lockheed Martin Corp ( LMT), and Northrop Grumman Corp ( NOC). Expense Ratio: 0.47% Six Month Total Return: 19.2% Rated "C+" by TheStreet Ratings:
7. PowerShares Aerospace & Defense Portfolio
PowerShares Aerospace & Defense Portfolio ( PPA) seeks investment results that correspond generally to the price and yield of the SPADETM Defense Index. The Index seeks to identify a group of companies involved in the development, manufacturing, operations, and support of U.S. defense, homeland security, and aerospace operations. Key holdings include General Dynamics Corp ( GD), Honeywell International Inc ( HON), and Raytheon Co ( RTN). Expense Ratio: 0.66% Six Month Total Return: 15.3% Rated "C-" by TheStreet Ratings:
6. SPDR S&P Aerospace & Defense ETF
SPDR S&P Aerospace & Defense ETF ( XAR) seeks to replicate as closely as possible the performance of the S&P Aerospace & Defense Select Industry Index, which represents the Aerospace and Defense sector within the S&P Total Market Index. Top holdings include Textron Inc ( TXT), Esterline Technologies Corp ( ESL), and BE Aerospace Inc ( BEAV). This exchange-traded fund is relatively new having an inception date of Sept 29, 2011. Expense Ratio: 0.35% Three Month Total Return: 10.5% Unrated by TheStreet Ratings:
The last of the easily investible interest groups that directly benefit from war-mongering are the integrated oil and other energy companies. There is no real oil shortage. In fact there is a surplus. Even the Keystone XL pipeline to the Texas coast was more about exporting oil through the Gulf of Mexico than bringing down the price of gasoline at the pump.
In trading on Tuesday, shares of the PowerShares Dynamic Media Portfolio ETF crossed above their 200 day moving average of $24.80, changing hands as high as $25.20 per share. PowerShares Dynamic Media Portfolio shares are currently trading up about 1.9% on the day.