IHI - Worried About U.S.-China Relations? Buy These 2 ETFs.
2023-07-12 09:31:00 ET
U.S.-China relations haven't been great in recent years, and the future is as uncertain as ever. The U.S. government is looking to reduce its reliance on China by helping to fund and encourage more domestic production.
Given the uncertainty ahead and the potential for trade-related problems, U.S. investors might want to consider minimizing their exposure to China. Two exchange-traded funds (ETFs) that can help achieve that are the iShares U.S. Aerospace & Defense ETF (NYSEMKT: ITA) and the iShares U.S. Medical Devices ETF (NYSEMKT: IHI) .
One major industry within the economy that looks to be a safe place to expect growth in the future is the aerospace and defense industry. Travel demand is likely to rise along with population growth, thus helping companies involved with aerospace benefit from that. And spending on defense is always a priority for the government, even in the absence of geopolitical tensions.
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Worried About U.S.-China Relations? Buy These 2 ETFs.