Q: A you are aware ITA is a ETF focusing on the defence and aerospace sector. Is there a canadian ETF that I can buy on the TSX that accomplishes the same thing? As well what are your thoughts on GE. Would you recommend or do you think that it has run up too much and too quickly. Thank you.
5i Research Answer:
SHLD is a defence ETF trading in Canada, which is essentially the same as SHLD: US.
GE has re-found its mojo, with good momentum and good growth expected. The balance sheet is now cash-rich and strong earnings growth is expected for two years. P/E is 46X so expectations are high and any disappointment would hurt. But even at its higher level it looks better than it has in a long time.