Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, joined Keith Black, Managing Director at RIA Channel, to discuss U.S. Global Investors’ newest thematic ETF.
Maslow’s hierarchy of needs builds on the foundation of survival, including nutrition, protection, and safety. Only after those basic needs are met can people move toward deeper and emotional needs, such as relationships, productivity, and self-fulfillment.
At this point in history, wars threaten this need for safety, especially in Europe. As a result, defense spending is growing in Europe and worldwide. American defense contractors have the ability to sell into NATO countries. Given President-Elect Trump’s demands for NATO members to increase defense spending, Holmes believes European countries will indeed spend more, preferring to grow orders more from European than American suppliers. This can lead to a renaissance in the European technology and defense industries.
The U.S. Global Technology and Aerospace & Defense ETF (WAR) invests in global stocks in the defense, semiconductor, artificial intelligence, and cybersecurity industries. WAR’s portfolio construction process uses the firm’s smart beta 2.0 process to optimize stock and industry weightings based on cyclical markets and revenue growth of portfolio companies.
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