Is This 2022 All Over Again? The Market Risk Checklist for 2026

**Luke Guerrero** (0:00)
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**SPEAKER_2** (1:09)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

**Luke Guerrero** (1:24)
Good afternoon, fellow investors, and welcome to the Monday, June 22nd, 2026 edition of Invest Talk. I'm your host, Luke Guerrero, and I'll be with you over the next 45 minutes to an hour as we dissect what went down in the market today, talk about the stories that matter, and answer your finance and investment questions. Now, before we get rolling, I do want to remind you all that our next new wealth webinar is set for Tuesday, June 30th from 12 to 1 Pacific Time. It is one week from tomorrow. It is called Beyond the Yield, How to Invest for Your Income Needs, and it is free, but as always, you must register at investtalk.com.
Before we talk about today's market performance and run down those show topics, let's tackle this caller question now.

**SPEAKER_3** (2:16)
I wanted to ask a question about aerospace and defense sector.
I was looking at a ETF PPA, it's the Invesco Aerospace and Defense ETF. I just wanted to get some more exposure into these sectors, and wanted to know if this was a good way to get some broad exposure into these industries and see if this would be a good fit. Thank you so much.

**SPEAKER_4** (2:43)
Bye.

**Luke Guerrero** (2:44)
PPA is the Invesco Aerospace & Defense ETF. It is a passive ETF that tracks the Spade Defense Index and invests in US companies systematically, important to defense, military, homeland security, and government space operation. So you're gonna see aerospace names, defense names, defense electronics, IT services for government, and cybersecurity alongside your traditional defense prime.
Now the companies that are at the top of this fund are ones that you have probably heard of. GE Aerospace, Boeing Company, RTX Corporation, Lockheed Martin rounding out the top four, which makes up about 30% of this portfolio. In fact, the top 10 make up about 55.41% of the overall portfolio. Now year to date, this thing is up about 11.96% from a price perspective. Over the one year, up 30.46 versus its category of about 54 points, sorry, 45.64. That is a meaningful underperformance versus the peers primarily driven by less exposure to European defense names because this is a US only ETF and the recovery drag from Boeing. Now, I understand why you want to own an aerospace and defense ETF. I mean, you're looking at the Iran War, you're looking at NATO's 2% GDP commitments, you're looking at the CHIPS Act and their domestic manufacturing and the fact that the president has promised on top of the largest defense budget ever this year to have the largest defense budget ever next year.
But, at the same time, for this fund specifically, you're paying 58 basis points for passive exposure that again is meaningfully underperforming peers. And I will say that I think one of the largest areas of where we've seen progress in the defense space is internationally.

**SPEAKER_5** (4:47)
Why?

**Luke Guerrero** (4:48)
Because of European rearmament. Now, we recently spoke on a previous show about why that may be drying up a bit, i.e. countries saying, oh, now we're in a position where, yes, the Iran War is waging, we gotta choose between fighting domestic issues, i.e. inflation, cost of living, and bolstering our military. Germany's stepping back. So overall, the theme, I think, as a long-term macro driver is good. In the short term, though, you've seen a lot of run-up names and shifting government positions towards what they wanna give a priority for. Either way, I think if you want aerospace and defense exposure, you want to have international exposure as well, and certainly do it for less than 58 basis points. Thanks for the call. I had a great show for you last Thursday, because of course Friday was a best of show with the Juneteenth holiday. But on Thursday, we looked at the Fox Roku deal and what big media M&A told us about the streaming economy. We also answered a question on the stock OKE One Oak Inc that was submitted through our YouTube channel. Now, if you didn't catch this episode, I encourage you to go check it out. And remember, the best way to never miss an episode of Invest Talk is to subscribe wherever you get your podcasts. Onto today, where my main focus point is gonna be taking a look at if the market today is 2022 all over again, and what we need to be looking for in terms of a risk checklist for 2026, because the market does look a lot like 2022 in three uncomfortable ways.