[07/09/24] Aerospace ETFs Undisturbed by Latest Boeing Blow

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

The Boeing Company’s woes continued Monday with reports that the company had agreed to plead guilty to a criminal charge for misleading safety regulators about a flight control system at the heart of two fatal crashes of its 737 MAX jets.

Boeing agreed to pay $487 million in fines, spend $455 million on improving its compliance and safety systems, and operate under a U.S. Justice Department-named monitor for three years. The appointee will submit annual reports to the government.

The settlement represents the latest blow for a company once widely praised for the safety of its aircrafts. The crashes of the MAX 737s when the flight control system activated forcing the planes’ noses down, and other mishaps, including a faulty door panel in an Alaska Airlines 737 MAX, have raised questions about Boeing’s manufacturing practices.

In a Senate hearing last month, Boeing CEO David Calhoun apologized to families for “the grief we have caused.”

The IShares U.S. Aerospace & Defense ETF (ITA) , whose 11% allocation in Boeing is the largest among funds, and other ETFs holding the stock, were up on Monday, along with Boeing’s share price.

By James Rubin

Below is a roundup of the key developments in the ETF industry for the seven-day period ending July 5:

Spot Bitcoin ETFs Turn Negative as Asset's Price Tumbles IBIT, FBTC, among others, were in negative territory as bitcoin sank below $54,000.

Investors Vote No on Political ETFs The funds have failed to impress financial advisors.

ETF Spotlight: TSLT Surges Amid Tesla Optimism Shares of the high-risk ETF have soared 171% since late April.

etf.com Opens Nominations for ‘Leaders’ List, Spotlighting Top FAs, Firms etf.com opens submissions for new list honoring top financial advisors and firms in the United States.

ETFs That Thrive When Bond Rates Go Nowhere Potential stability if 10-year yield keeps going up…and down.

Featured Fund

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN)

DFEN provides daily three times exposure to the Dow Jones U.S. Select Aerospace and Defense Index, a market-cap-weighted index of US-listed aerospace and defense stocks. Due to compounding and a daily reset function, the fund is meant to be a trading vehicle for investors to make short-term bets on the direction of the aerospace and defense industry and not a long-term investment strategy.

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TALK ETF’S VIDEO SERIES

It’s been a rough year for agriculture commodities, with corn recently hitting a four-year low. But these are the times that opportunistic investors should be paying close attention to this segment of the commodities markets, according to Sal Gilbertie, CEO of Teucrium, an agriculture-focused ETF issuer. In this episode of Talk ETFs , Gilbertie sits down with etf.com Senior Analyst Sumit Roy to discuss the corn trade, as well as the outlook for other agriculture commodities in general.?Watch Now

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