DXS Most recent trade: $5350.6113 Today's Change: -4.7549
PPA Most recent trade: $46.16 Today's Change: -0.04


Benchmark Index: SPADE Defense Index (NYSE: ^DXS)
Exchange Traded Fund licensee: InvescoPowershares Aerospace & Defense ETF (NYSE: PPA)

About the SPADE Defense Index

The SPADE® Defense Index (NYSE: ^DXS) is a modified capitalization-weighted index comprised of publicly traded companies that benchmarks the performance of companies involved with defense, homeland security, and space. The Index is composed of more than 50 firms with representative business activities including: naval vessels, military aircraft, missiles and munitions, battlespace awareness, C4ISR, network centric warfare, homeland security including border security and biometric and screening systems, and space systems.

Index values are distributed by the NYSE/ICE Data Services under the ticker 'DXS'. The InvescoPowershares Aerospace & Defense ETF, designed to track the SPADE Defense Index, trades under the ticker 'PPA'. Historical data for the Index is available from 30 December 1997. The ETF was launched on 26 October 2005.

About the Market
The Defense and Homeland Security market represents nearly 5% of U.S. GDP and includes a number of the world's leading industrial firms as well as those developing the next generation of cutting-edge technologies.

The sector's performance over the past two decades has been driven by a global increase in spending by governments for defense and security -- now totaling more than $1.1 Trillion annually and the purchase of commercial aircraft designed to fly with increased fuel efficiencies. Even as the U.S. market tightens, international defense, and commercial sector opportunities are rising.

Historically over the past forty years, the sector has showed steady gains when factoring in reinvested dividends, even during periods of budget tightening. Defense companies over time have been adept at returning value to shareholders and unlike previous cycles, the balance sheets of defense companies are currently in a position of strength. With low valuations, many analysts believe that the sector continues to present opportunities.

For more on the aerospace and defense market, read our commentary and industry statistics found in our newsletter -- "The SPADE Investor".

The Powershares Aerospace & Defense ETF (PPA), which tracks the Index, is highly liquid.

Latest Information
  • Download the April 2017 Newsletter. (pdf)
  • Download our March 2017 Presentation. (pdf)
  • Download the Jan 2017 Newsletter. (pdf)
  • 31 December 2016 Rebalance --- No changes to the index were made. A non-defense division spun-off by Honeywell was removed.
  • Download the 3Q16 Newsletter. (pdf)
  • 30 September 2016 Rebalance --- KBR was added to the index. They recently acquired Wyle and HTSI to expand their defense services business.
  • 12 September 2016 --- American Science & Engineering was acquired by OSI Systems.
  • 30 June 2016 Rebalance --- No changes to the index were made.
  • Download the 2Q16 Newsletter. (pdf)
  • Download the April 2016 newsletter (pdf)
  • 31 March 2016 Rebalance --- Intelsat (I) was removed from the index after its price fell below required levels. Ducommun (DCO) was removed when it fell below the liquidity requirements of the index's governing rules.
  • 29 January 2016 --- Precision Castparts (PCP) was removed from the index following its acquisition by Berkshire Hathaway.
  • Download the Jan 2016 newsletter with the 2015 Year-End Results (pdf)
  • 30 December 2015 Rebalance ---CSRA Inc (CSRA) was added to the index following the split of CSC into two publicly-traded firms--one focused on commercial clients (CSC) and one focused on government (CSRA). BWX Technologies (BWXT) was added to the index. babcox & Wilcox recently sold its power division, changed its name, leaving it almost exclusively focused on its Navy nuclear business. Supercom (SPCB) was removed when it fell below market cap requirements of the index's governing rules.
  • Download the 3Q15 Newsletter. (pdf)
  • Download the 2Q15 Newsletter. (pdf)
  • 30 June 2015 Rebalance --- LMI Aerospace (LMIA) was removed from the Index as it no longer meet trading liquidity screens. During the quarter, Harris (HRS) completed its acquisition of Exelis (XLS).
  • 24 April 2015 -- Ticker/Name Change from Gencorp Aerojet (GY) to Aerojet Rocketdyne (AJRD)
  • Download the 1Q15 Newsletter. (pdf)
  • 31 March 2015 Rebalance --- Supercom (SPCB) was added to the Index. SPCB maintains passport and border security for a number of nations.
  • Feb 2015 -- Ticker change to Orbital ATK (OA): Merger of Orbital Sciences (ORB) and Alliant Techsystems (ATK)
  • Download the Jan 2015 newsletter with the 2014 Year-End Results (pdf)
  • December 2014 Quarterly Rebalance: The following companies have been added to the index Woodward (WWD), Curtiss Wright (CW) and FireEye (FEYE). FEYE owns 2 of the only 7 companies approved as part of the NSA's National Cyber Assistance Program
  • Download the 3Q14 Newsletter. (pdf)
  • October 2014: URS was removed from the Index after its $5.8 billion acquisition by AECOM closed.
  • September 2014 Quarterly Rebalance: Vectrus (VEC) was added to the Index following its spin from Exelis.
  • Download the 2Q14 Newsletter. (pdf)
  • June 2014 Quarterly Rebalance: Kaman (NYSE: KAMN) was added to the Index.
  • Download the April 2014 Newsletter to see 1Q 2014 results and our current commentary on the sector. (pdf)
  • Presentation given to InvestorIdeas.com Cybersecurity Investor Event(pdf)
  • March 2014 Quarterly Rebalance: Sparton (NYSE: SPA) was added to the Index. During the quarter, Anaren (ANEN) was removed after they were acquired by a private equity firm.
  • Download the January 2014 Newsletter to see 2013 results and 2014 forecast. (pdf)
  • December 2013 Quarterly Rebalance: During the quarter, SAIC (NYSE: SAI) split into two public companies: SAIC (NYSE:SAIC) and Leidos (NYSE: LDOS).
  • September 2013 Quarterly Rebalance: Intelsat (NYSE: I) and LMI Aerospace (NASDAQ: LMIA) were added to the index •
  • Newsletter: 1st Half 2013
  • June 2013 Quarterly Rebalance: There were no changes to the index •
  • Newsletter: 1st Quarter 2013
  • March 2013 Quarterly Rebalance: During the quarter, DigitalGlobe (DGI) completed its acquisition of GeoEye (GEOY).
  • • Newsletter: 2012-End-of-year
  • December 2012 Quarterly Rebalance: Ceradyne (CRDN) was removed from the index during the quarter following their acquisition by 3M
  • September 2012 Quarterly Rebalance: Engility (NYSE: EGL) was added to the index. LMI Aerospace (NASDAQ: LMIA) was removed when its trading volume fell below required levels. Goodrich (GR) was removed when its acquisition by United Technologies was completed.
  • Download the September 2012 Newsletter (pdf)
  • Download the August 2012 Newsletter (pdf)
  • Download the July 2012 Newsletter (pdf)
  • Download the June 2012 Newsletter (pdf)
  • June 2012 Quarterly Rebalance: Anaren (NASDAQ: ANEN) was added to the index. NCI (NASDAQ: NCIT) was removed when its trading volume fell below required levels.
  • Download the May 2012 Newsletter (pdf)
  • Download the April 2012 Newsletter (pdf)
  • • March 2012 Quarterly Rebalance: No changes were made to the index
  • Download the March 2012 Newsletter (pdf)
  • Download the February 2012 Newsletter (pdf)
  • Download the January 2012 Newsletter (pdf)
  • • December 2011 Quarterly Rebalance: Elbit Systems (ESLT) was removed when its trading volume fell below required levels. Hexcel (HXL) was added.
  • Force Protection (FRPT) was removed from the index following the completion of its acquisition by General Dynamics -- 19 December 2011
  • Download the December 2011 Newsletter (pdf)
  • ITT Exelis (NYSE: XLS), the defense group replaced ITT after the company split into three firms on 1 November 2011
  • Download the November 2011 Newsletter (pdf)
  • • Download the October 2011 Newsletter (pdf)
  • September Quarterly Rebalance: Huntington Ingalls (NYSE: HII) was added.
  • Download the September 2011 Newsletter (pdf)
  • 22 August 2011 - The acquisition of EMS Technologies was completed by Honeywell (NYSE: HON) and was removed from the index.
    • Download the August 2011 Newsletter (pdf)
  • 27 July 11 - The acquisition of two index constituents closed. Kratos (KTOS) completed it acquisition of Integral Systems (ISYS) and Safran of France completed its acquisition of L1 Identity (ID). •
  • Download the July 2011 Newsletter (pdf)
  • 20 June 11 - Providence Equity Partners completed its acquisition of SRA International (SRX)
  • June Quarterly Rebalance: Heico (NYSE: HEI) was added.
  • Download the June 2011 Newsletter (pdf)
  • 9 May 11 - Ladish Corporation was removed from the index after its acquisition by Alleghany closed.
  • Download the May 2011 Newsletter (pdf)
  • • Download the April 2011 Newsletter (pdf)
  • March 2011 Quarterly Rebalance: CPI International (CPII) and Applied Signal (APSG) were removed from the index during the quarter when the acquisition of their firms closed. •
  • Download the March 2011 Newsletter (pdf) •
  • Download the February 2011 Newsletter (pdf)
  • • Download the January 2011 Newsletter (pdf)
  • •December Quarterly Rebalance: Booz Allen (NYSE: BAH) and KEYW Holdings (NASDAQ: KEYW) were added. VSE Corporation (NASDAQ: VSEC) was removed when the stock no longer met the liquidity requirements governing the index. The following companies were removed when their acquisitions closed: Cogent (NASDAQ; COGT), and ICX Technologies (NASDAQ: ICXT)

  • • Download the December 2010 Newsletter (pdf)
  • • Download the November 2010 Newsletter (pdf)
  • • Download the October 2010 Newsletter (pdf)
  • •September 2010 Quarterly Rebalance: Transdigm (NYSE: TDG), LMI Aerospace (NASDAQ: LMIA), and CPI International (NASDAQ: CPII) were added. The following companies were removed when their acquisitions closed: Dyncorp (NYSE: DCP), Argon ST (NASDAQ: STST), and Stanley (NYSE: SXE)