Heightened geopolitical tensions and cybersecurity concerns may be propelling exchange-traded funds that invest in stocks linked to those areas toward potential “breakouts,” according to Renaissance Macro Research. Shares of the First Trust Nasdaq Cybersecurity ETF
have jumped 9.5% this year through Thursday, while the iShares U.S. Aerospace & Defense ETF
climbed 4.5% over the same period, according to FactSet data.
“We live in dangerous times and that is being reflected in the stock market,” as the iShares U.S. Aerospace & Defense ETF and First Trust Nasdaq Cybersecurity ETF are “on the verge of breakouts,” Renaissance Macro Research said in a note Friday. The First Trust Nasdaq Cybersecurity ETF could break out from “a bearish trend,” while the iShares U.S. Aerospace & Defense ETF is “looking to make new all-time highs,” Renaissance Macro said in the note. “We would add to longs in both on breakouts” with “relative confirmation.”
Meanwhile, investors have been monitoring the Russia-Ukraine war as well as tensions between China and the U.S. China …
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