Aerospace ETFs To Play Northrop Grumman With (PPA, ITA)

Shares of defense giant Northrop Grumman are rallying today on news it is selling its contractor's advisory services unit for $1.65 billion in cash to a private equity firm and that has the ETF Professor looking at aerospace ETFs to play the good news with.

The Professor recommends the iShares Dow Jones US Aerospace & Defense ETF (NYSE: ITA) and the PowerShares Aerospace & Defense ETF (NYSE: PPA). Northrop is a top-10 holding at both ETFs.

Both ITA and PPA are thinly traded, so they might be advisable plays for trades of several days or longer.