2025 has been a remarkable year for the defense industry. Look no further than a benchmark exchange-traded fund (ETF) like the Global X Defense Tech ETF (NYSEARCA: SHLD), which has returned about 65% year-to-date (YTD).
While a surge in defense stocks may be suitable for investors, it often comes at the price of geopolitical stability, and ongoing tensions between the United States, Russia, China, and other major players are likely a significant contributing factor in the industry's rally this year.
