Summary

• I rate the Global X Defense Tech ETF a "Buy," as valuation has become reasonable and technicals suggest a potential rebound.
• SHLD offers diversified exposure to global defense modernization, with a solid long-term EPS growth rate above 13% and a mid-20s P/E multiple.
• Recent underperformance and poor momentum have pushed SHLD to key long-term support near $60, where bullish seasonality may provide a catalyst.
• SHLD is concentrated in Industrials, with over one-third ex-U.S. allocation and notable holdings like Palantir (7.1%), but yields remain low for income investors.

Perhaps the most surprising trade of the first half was the severe underperformance of defense stocks following the onset of the conflict in Iran. Traditional aerospace & defense firms intuitively stood to benefit from heightened geopolitical conflict, particularly following Maduro's ousting in Venezuela in

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