Democrats control Iran war funds, but defense budget cuts may be smaller than expected.

Following the midterm elections, Democrats now control the funds related to the Iran war, prompting concerns about potential defense budget cuts. However, the actual amount Congress can block is smaller than media headlines suggest. Historical context shows defense stocks have weathered multiple budget fights since 2011 with limited impact, except for a significant cut in 2006 during a war-weary period. Investors should note that the exposure of defense stocks varies depending on what portion of the budget Democrats can realistically influence.

The iShares US Aerospace & Defense ETF (ITA) is currently priced at USD 210.99 on Pluang, down 2.40% in the last day. Trading volume is 1,268,877 shares with a market cap of $12.50 billion as of Nov 04, 2026 23:03 WIB.