The SPDR S&P Aerospace & Defense ETF climbed on Wednesday after prediction markets sharply raised the odds of a US–Iran military confrontation. Heightened geopolitical jitters funnelled fresh inflows into defense contractors and space infrastructure names, with the ETF emerging as a top sector performer.

Earlier this month, speculation that SpaceX could pursue a blockbuster initial public offering valuing the company near $1.5 trillion prompted many investors to reserve capital and reassess valuations across listed space stocks. This cautious stance had pressured the broader aerospace and defense segment until the recent rally.

Launched on September 28, 2011, the ETF is a passively managed fund designed to provide broad exposure to the Industrials – Aerospace & Defense equity segment. It holds a diversified portfolio of space, defense and related engineering companies to mirror the underlying index.