5 Biggest US Defense Stocks

Today, the US accounts for the largest share of global defense spending, representing about 37 percent of worldwide military outlays. In fact, military spending represents about 12 percent of the US federal budget for fiscal year 2025. Worsening geopolitical tensions are expected to increase the US government’s spending on defense technology.

1. RTX (NYSE:RTX)

Market cap: US$189.46 billion

One of the most well-known American defense companies, RTX operates in the defense, aviation, space, electronics and cybersecurity sectors. The company captured more than US$80.7 billion in revenue for 2024, up 17.15 percent from the previous year.

The company’s defense solutions arm Raytheon was awarded a US$250 million contract in June 2025 from Japan’s Mitsubishi Electric (TSE:6503) for licensed production of ESSM Block 2 short to medium-range guided missiles.

‘Under the Direct Commercial Sale contract, Raytheon will provide missile kits, parts, and components as well as technical support for missile production at (Mitsubishi Electric) in Japan,’ the press release stated.

2. The Boeing Company (NYSE:BA)

Market cap: US$151.52 billion

Another heavyweight in the aerospace and defense industry, Boeing designs and manufactures airplanes, rotorcraft, rockets, satellites, telecommunications equipment and missiles.

Revenue for the company declined by 14.5 percent in 2024 over the previous year to come in at US$66.5 billion. The majority of that loss was driven by its airplane segment; its defense segment revenue dropped 4 percent over the same period. The company’s aviation sector has faced heavy scrutiny in recent years after several disastrous incidents linked to the Boeing 737.

As for its defense business, in March 2025, Boeing reported that production of its air defense systems, Patriot Advanced Capability-3 seekers, reached an all-time high in 2024. According to the release, the company produces the seekers as a subcontractor for Lockheed Martin and has sold them to 17 countries, including the US and Ukraine.

3. Honeywell International (NASDAQ:HON)

Market cap: US$144.57 billion

Engineering and technology company Honeywell International develops and manufactures technological solutions for a variety of sectors. The company’s four business divisions are aerospace technologies, building automation, energy and sustainability solutions, and industrial automation. Honeywell’s sales came in at US$38.5 billion in 2024, up 5 percent from the previous year.

Honeywell has numerous defense contracts with government agencies around the world, including right at home with the US Department of Defense (DoD) and US Armed Forces. In May 2025, the company’s JetWave X satellite communication system was selected for use in the advanced US Army aircraft ARES.

4. Lockheed Martin (NYSE:LMT)

Market cap: US$107.57 billion

Lockheed Martin’s business is concentrated on aerospace products and advanced defense technology systems. The F-16 Fighting Falcon fighter jet is among its most notable products, but Lockheed is also well known for its space launchers, ballistic missiles and satellites. The company’s 2024 net sales increased by 5.15 percent from the previous year to just over US$71 billion.

Unsurprisingly, about half of Lockheed Martin’s annual sales are made to the US DoD. However, governments around the world have purchasing contracts with the company to supply their militaries with defense products such as F-16 and F-35 fighter jets. In April 2025, the Royal Norwegian Air Force received the last two F-35 fighter jets of the 52 ordered in its most recent supply contract.

5. General Dynamics (NYSE:GD)

Market cap: US$76.57 billion

Although best known for its Gulfstream business jets, General Dynamics designs and manufactures wheeled and tracked combat vehicles, submarines, weapons and communications systems, as well as munitions. The company garnered more than US$47.72 billion in revenue for 2024, up 12.88 percent from the previous year.

General Dynamics is a major defense contractor for the US military as well as allied nations abroad. In April 2025, the company was awarded US$12 billion in contract modifications for the construction of two Virginia-class submarines for the US Navy, bringing the potential value of the contract to US$17.2 billion. This type of sub is designed for anti-submarine and surface ship warfare and special operations support.

5 Biggest US Defense ETFs

Investors looking to mitigate the risk of investing in individual stocks can diversify their portfolio with defense ETFs. While ETFs aren’t without risk, they are often considered a more stable investment compared to stocks as they allocate funds across a variety of stocks that are rebalanced by an asset manager to meet the return goals of the fund.

The biggest US Defense ETFs by assets under management are listed below according to data from ETF Database.

1. iShares U.S. Aerospace & Defense ETF (BATS:ITA)

Assets under management: US$7.83 billion

The iShares U.S. Aerospace & Defense ETF launched in May 2006. This fund invests in large, generally stable companies in the aerospace and defense sector, particularly those with the majority of their revenues based on long-term government contracts.

The ETF has 40 holdings and an expense ratio of 0.4 percent. IShares U.S. Aerospace & Defense ETF’s top holdings include RTX, Boeing, Lockheed Martin and General Dynamics as well as another important name in the industry, L3Harris Technologies (NYSE:LHX).

2. Invesco Aerospace & Defense ETF (NYSEARCA:PPA)

Assets under management: US$5.41 billion

Invesco Aerospace & Defense ETF launched in October 2005. Like ITA, it also tracks large, stable aerospace and defense stocks with steady revenue streams from long-term government contracts.

While it has more holdings than ITA at 57, it also has a higher expense ratio at 0.58 percent. Unlike ITA, Honeywell is listed among Invesco Aerospace & Defense ETF’s top holdings in addition to the other biggest US defense stocks.

3. SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR)

Assets under management: US$3.76 billion

SPDR S&P Aerospace & Defense ETF, which launched in September 2011, offers exposure to large cap stocks in this sector. It has the lowest expense ratio on this list at 0.35 percent.

Of the 40 holdings XAR tracks, the most heavily weighted US defense stocks include RTX, Boeing, Lockheed Martin and General Dynamics as well as Rocket Lab (NASDAQ:RKLB) and AeroVironment (NASDAQ:AVAV).

4. Global X Defense Tech ETF (NYSEARCA:SHLD)

Assets under management: US$2.69 billion

Launched in September 2023, Global X Defense Tech ETF is the newest defense ETF on the market. While it does offer a geographic diversity of exposure to the overall defense sector, its holdings are just over 50 percent based in the United States. This ETF has an expense ratio of 0.50 percent.

SHLD has 43 holdings, including the biggest US defense stocks such as Lockheed Martin and General Dynamics, but is also heavily weighted in Palantir Technologies (NASDAQ:PLTR) and L3Harris Technologies.

5. Direxion Daily Aerospace & Defense Bull 3X Shares (NYSEARCA:DFEN)

Assets under management: US$249.19 million

Direxion Daily Aerospace & Defense Bull 3X Shares launched in May 2017 with the goal of tripling the daily return of an index of major defense industry stocks.

DFEN has the highest expense ratio on this list at 0.95 percent. Some of the most heavily weighted stocks of its 39 holdings are Boeing, Lockheed Martin and RTX.

Court upholds TMC disclosures on deep-dea mining risks

Lockheed is not alone in navigating the legal uncertainties surrounding seabed mining.

The Metals Company (TMC) (NASDAQ:TMC), a deep-sea mining startup, recently survived a shareholder lawsuit alleging it had misled investors about the environmental impacts and financial backing of its operations.

US District Judge Eric Komitee dismissed the claims, ruling that the company’s comparisons to conventional mining methods were not misleading, even if deep-sea mining still carries environmental risks.

“It is eminently possible that (1) deep-sea mining causes meaningful environmental harm, and yet (2) such harm is significantly less than the harm caused by existing methods,” the judge wrote.

TMC had disclosed in filings that deep-sea mining could result in damage and that the regulatory path remained uncertain. Its legal win may encourage others — like Lockheed — to proceed more openly with their seabed plans, albeit cautiously.

Deep-sea mining industry cautiously awakens

The growing pursuit of potentially extracting resources from the world’s oceans comes at a critical juncture for the seabed-mining industry. For decades, a de facto moratorium on mining in international waters has been in place due to regulatory uncertainty and environmental concerns.

The ISA has issued more than 30 exploratory permits, but has yet to finalize commercial extraction rules. That delay has prompted frustration from some parties, while drawing calls from others for a pause or outright ban.

Currently, the ISA is holding key assemblies in Jamaica to hash out the long-awaited mining code to regulate commercial activity on the ocean floor with provisions for environmental safeguards, royalties, and tax obligations.

But a growing number of countries — 37 at last count — have pushed for a precautionary pause, citing risks to deep-sea ecosystems that remain largely uncharted. Scientists warn that mining these habitats could cause irreversible damage.

In 2023, Lockheed appeared to step back from the sector by selling two UK-sponsored exploration licenses in the Pacific, a move interpreted by analysts as signaling reduced confidence in deep-sea mining.

However, its retained US licenses suggest it never fully exited the space.

The Trump administration’s executive order marks the most assertive US step yet to undermine the ISA’s multilateral approach, raising fears among diplomats that the agency may lose legitimacy.

China, which has also invested heavily in seabed mining, responded sharply to the move.

“The US authorization violates international law and harms the overall interests of the international community,” Chinese foreign ministry spokesman Guo Jiakun said earlier this year.

Watch a recap of key Rule Symposium takeaways.

Tailwinds turning to headwinds

In addition to strategically allocating to gold, geopolitical uncertainty was as a key theme at the Rule Symposium.

During his presentation “Back to the Old Drawing Board: First Principles and the Lost Art of Investing Through Crisis,” author and publisher Grant Williams made the case that longstanding tailwinds — globalization, demographic expansion and low interest rates — have reversed, giving way to persistent uncertainty.

Grant Williams (@ttmygh) is the first keynote speaker in a jam-packed day at the #RuleSymposium.

Offering advice on #investing during times of crisis, Williams told the full room that the “world has been on a debt binge for the last four decades.” pic.twitter.com/wWBtOu598W

— Resource Investing (@INN_Resource) July 8, 2025

Williams provides an overview of shifting market dynamics.

He traced the last four decades of wealth creation to a rare alignment of forces that pushed asset prices, particularly US equities, sharply higher. However, since 2020, a new macro regime has emerged, defined by tighter monetary policy, rising geopolitical risk and fading confidence in the US dollar.

Like many speakers at the Rule Symposium, Williams also underscored the massive gold purchases central banks are making. During Q1 of this year, central banks added 244 metric tons of gold to their official reserves, a 24 percent increase above the five year quarterly average, according to World Gold Council data.

For Williams, this shift signals growing concern within the financial system — a trend investors shouldn’t overlook.

“When central banks are exchanging their reserves for gold in record amounts, if they feel the sudden urgent need to own more gold, you better believe that we should feel that too,” he noted.

The expert went on to illustrate how major economic and societal cycles are converging, suggesting more volatility ahead. A live poll of the audience taken during his session revealed growing unease among attendees, with many already adjusting their portfolios and long-term goals. In response, Williams called for a return to key principles: scarcity, durability, resilience, trust, patience and a clear-eyed acceptance of uncertainty.

These, he said, should now anchor any sound investment approach. He urged Rule Symposium attendees to shift their mindset from chasing returns to preserving capital by reducing overexposure to US equities, diversifying by geography and asset class and focusing on businesses with real staying power.

The investment playbook of the past no longer fits the world we’re entering, he stressed.

Navigating what Williams calls an “age of headwinds” will require humility, discipline and a willingness to rethink what truly creates and protects wealth.

Hard assets set to shine

Economist, author and former Wall Street executive Dr. Nomi Prins laid out a case for what she calls the “real asset uprising,” a global shift in value and power driven by hard assets like gold, silver, copper, uranium and rare earths.

Drawing on her experience in high-level banking and her current work in the mining sector, Prins argued that rising geopolitical friction, shifting trade dynamics and financial system strain are fueling a renewed focus on tangible resources. She pointed to surging institutional interest in commodities, noting that Wall Street deal flow tied to real assets is up 24 percent year-on-year, while hiring in commodity finance roles has increased by 15 percent.

Gold, once dismissed on trading desks, is now seen as a strategic monetary tool.

According to Prins, the yellow metal will not replace the US dollar as the reserve currency, but it will play a central role in bilateral trade and power negotiations. Gold’s jurisdiction — where it is stored and mined — is now more important than ever, she explained, as nations seek to shield assets from sanctions and instability.

Silver, copper, uranium and rare earths are all finding support through similar structural tailwinds, Prins pointed out.

Silver demand is rising due to its industrial applications, and limited aboveground supply is driving long-term contracts.

For its part, copper has become so strategically important that the US is conducting a Section 232 national security investigation into its supply chain, a move historically reserved for defense resources. Major buyers like China and India are stockpiling copper in anticipation of supply constraints.

Uranium is also surging back into focus, driven by bipartisan support for nuclear energy. Legislation and executive orders are fast tracking uranium permitting and enrichment, with utility demand expected to outstrip supply.

Rare earths = real assets

Prins highlighted rare earths as a critical new front in the ongoing global shift in value and power.

‘Rare earths are intrinsic to the nation,’ she said, pointing to their essential role in defense, electronics and energy technologies. With 85 percent of processing controlled by China, the US has launched Section 232 investigations to assess domestic vulnerabilities — reports on copper and rare earths are expected this fall.

Prins described her decision to join the board of a rare earths company as a natural extension of her belief in physical assets: “It’s not just about the asset — it’s about controlling the asset, the processing and the movement.”

That theme underpins the investment case: security of supply, efficient processing and strategic jurisdiction are key to value creation. She also noted a dramatic capital rotation, saying that US$330 billion has exited bonds over the past year, while US$230 billion has flowed into commodities.

“Wall Street is following the real asset story,” Prins emphasized.

.@porterstansb of Porter’s Daily Journal joins @RealRickRule for a #RuleSymposium fireside chat about the investment landscape.

“There are a good two or three years left in the #resource boom,” said Stansberry, who is working on a book about Warren Buffet’s #investing mistakes. pic.twitter.com/K9FdihfJO3

— Resource Investing (@INN_Resource) July 8, 2025

Rule sits down with Porter Stansberry to discuss his investment strategy.

Prins then said real upside now lies not just in owning resources, but in having processing capability.

New technologies, like advanced rare earths separation methods, are increasing economic viability and attracting private capital. “Where private money and public power combine, that’s where the investment opportunity is,” she said.

With key policy announcements and trade shifts looming in the fall, she warned investors this is a “very critical time” in the real asset uprising. For Prins, the message is clear: investors, policymakers and mining leaders must position accordingly, because, in today’s world, “whoever controls the ground controls the game.’