Look, I know what you’re thinking. “Defense stocks? Really? That’s your hot take for 2026?” But hear me out – while everyone’s obsessing over AI and crypto, there’s a $60 billion investment firm quietly loading up on companies that make things that go boom.
Scott Helfstein from Global X ETFs isn’t just throwing darts at a board here. The guy’s watching the world get increasingly… let’s call it “spicy”… and he’s betting that governments are about to open their wallets wide for some serious military hardware.
“We’re moving to a world of decentralized deterrence,” Helfstein says, which is fancy talk for “everyone’s getting their own toys instead of relying on the US to be the world’s security guard.”
The Shopping List That Could Make You Rich
Here are his five picks that could turn your portfolio into a financial fortress:
Huntington Ingalls Industries (HII) – Up 85% in 2025
These folks build ships for the Navy, but here’s the kicker: they’re pivoting to autonomous sea vehicles. Think drones, but for the ocean. Because apparently, we’ve mastered robot warfare in the sky and now it’s time to automate the seas. What could go wrong?
BAE Systems (BAESY) – Up 64% in 2025
This UK powerhouse is basically Europe’s answer to “what if we can’t always count on America?” With a 4% free cash flow yield and trading at 19 times forward earnings, it’s like getting premium defense tech at a reasonable price. Plus, Brexit means they really need to figure things out on their own.
Rheinmetall (RNMBY) – Up 190% in 2025
German engineering meets military hardware. These guys make everything from car parts to tanks, which is either brilliant diversification or the most German thing ever. “Ja, we make ze BMW and ze Panzer with ze same precision.”
Lockheed Martin (LMT) – Down 1% in 2025
The only one that didn’t party in 2025, which might actually be good news if you like buying quality on sale. They’re still the go-to contractor for the US military, and with defense budgets swelling faster than a politician’s promises, this could be a steal.
BWX Technologies (BWXT) – Up 57% in 2025
Half military nuclear, half civilian nuclear. It’s like investing in both the apocalypse AND clean energy at the same time. Hedging your bets has never been so… explosive.
The Bottom Line
While everyone’s debating whether AI will take over the world, smart money is betting on the companies that’ll either protect us from it or profit from the chaos. Defense spending isn’t going anywhere – if anything, it’s going up as countries realize that “thoughts and prayers” isn’t a viable national security strategy.
Just remember: investing in defense stocks doesn’t make you a warmonger. It makes you a realist with a portfolio that could explode in value. Sometimes the best offense is a good defense… stock.