Investing in global defense makes sense for two important reasons: demand and diversification. With a focus on advanced research and development, surveillance, aerospace and analytical technologies, global defense makes a super-attractive, stable option for investors. Defense stocks are highly valued for a number of reasons and can ride out the bumps in the market without breaking a sweat: they’re an exception to the cyclical pattern of the stock market. Long-term contracts secured years in advance provide insulation for the heavily concentrated industry against rocky market conditions. The big-name players listed in this theme are building solutions to keep ahead of digital shifts, and are heavily invested in the development of smart systems, artificial intelligence, connected devices and other innovative technologies.