Boosting ETFs for Defense, Domestic Manufacturing and Energy

The One Big Beautiful Bill Act is expected to boost companies in defense, domestic manufacturing, and U.S. energy industries. Investors can consider ETFs like iShares U.S. Aerospace & Defense ETF (ITA), iShares U.S. Manufacturing ETF (MADE), and Vanguard Energy ETF (VDE) to gain exposure to these industries. ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index, while MADE targets the S&P U.S. Manufacturing Select Index. VDE provides broad exposure to the energy sector, including fossil fuels.

The One Big Beautiful Bill Act, signed on July 4, 2025, is poised to provide significant benefits to companies across various sectors, including defense, domestic manufacturing, and U.S. energy. This act, designed to unfold gradually, may offer a boost to these industries, prompting investors to consider exchange-traded funds (ETFs) for targeted exposure.

Defense Industry ETFs

For investors seeking to gain exposure to the defense industry, the iShares U.S. Aerospace & Defense ETF (ITA) is a notable option. This fund tracks the Dow Jones U.S. Select Aerospace & Defense Index, providing exposure to a diversified group of U.S. equities in the aerospace and defense sector. ITA's multi-cap structure and relatively low expense ratio of 0.40% make it an appealing choice for investors looking for diversification within the defense industry. The fund is expected to benefit from the increased defense spending, with the Big Beautiful Bill increasing defense spending by over $156 billion, bringing total planned spending for fiscal 2026 to over $1 trillion [2].

Domestic Manufacturing ETFs

Investors interested in domestic manufacturing may find the iShares U.S. Manufacturing ETF (MADE) attractive. This fund targets the S&P U.S. Manufacturing Select Index, offering exposure to a broad range of U.S. manufacturers across various sectors. The Big Beautiful Bill includes incentives for domestic manufacturing, which could benefit MADE's portfolio, which includes about 111 different names. MADE's expense ratio of 0.40% and year-to-date return of more than 11% make it a compelling option for investors seeking exposure to this sector [2].

Energy Industry ETFs

For a broad view of the U.S. energy space, the Vanguard Energy ETF (VDE) is a solid choice. This fund provides exposure to a range of energy companies, including petroleum, natural gas, coal, and renewable energy firms. With a focus on legacy energy firms like Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX), which account for a significant portion of the portfolio, VDE is well-positioned to benefit from the Big Beautiful Bill's focus on traditional energy sources [2].

Conclusion

The One Big Beautiful Bill Act presents opportunities for investors to gain exposure to promising sectors through ETFs. The iShares U.S. Aerospace & Defense ETF, iShares U.S. Manufacturing ETF, and Vanguard Energy ETF offer targeted exposure to defense, domestic manufacturing, and energy industries, respectively. By investing in these ETFs, investors can benefit from the potential boost to these sectors while enjoying the diversification and liquidity advantages of ETFs.

References

[1] https://cryptofrontnews.com/21shares-files-first-ever-1940-act-crypto-basket-etfs/
[2] https://www.investing.com/analysis/3-etfs-to-buy-as-the-one-big-beautiful-bill-rolls-out-200664051