When the U.S. launched a military operation in Venezuela under Trump's direction, it did more than spark diplomatic reactions. It reminded investors that geopolitical chaos is unpredictable, and when uncertainty rises, so does interest in defense stocks.

The operation has governments across Europe, Asia, and Latin America questioning what comes next for regional security and whether this signals more interventions ahead. That kind of uncertainty tends to filter straight into corporate boardrooms and investment portfolios, and right now, aerospace and defense ETFs are getting a fresh look from investors trying to position for whatever happens next.

The ETFs Catching Investor Attention

If you're looking for exposure to companies that benefit when defense budgets expand or geopolitical tensions rise, a few ETFs offer different angles on the sector:

• iShares U.S. Aerospace & Defense ETF (ITA): This fund gives you broad exposure to the big names in U.S. defense, including Lockheed Martin Corp (LMT) and Northrop Grumman Corp (NOC). It's up more than 6% over the past five days and shares are testing new highs.
• Invesco Aerospace & Defense ETF (PPA): Another take on U.S. defense and aerospace companies, but with a different weighting methodology. The fund has climbed 6.5% in the same period.
• Global X Defense Tech ETF (SHLD): This one focuses on companies building the next generation of defense technology, from cybersecurity to modernization programs. SHLD has jumped nearly 11% in five days, leading the pack.

Why Defense ETFs Make Sense When Things Get Messy

Here's the thing: you don't need confirmation of higher defense budgets to see why these funds are appealing. ETFs let you capture potential upside if geopolitical tensions lead to increased spending or faster procurement timelines. And they give you diversification across multiple contractors, which means you're not betting everything on one company's quarterly results.

The Venezuela situation highlights something investors already know but sometimes forget: geopolitical risk doesn't follow a schedule. Markets react, governments shift priorities, and defense budgets can change faster than you'd expect. Whether or not defense spending actually increases, positioning in aerospace and defense ETFs offers a way to prepare for shifts in government policy and international security concerns without trying to predict exactly how events will unfold.