The aerospace & defense sector is riding higher on increased NATO defense spending, robust demand for passenger jets as well as earnings optimism. Trump last week signed a $717-billion 2019 defense spending bill that has added to the strength in the space.

iShares U.S. Healthcare ETF (IYH - Free Report) – 52-Week Price: $195.20

This fund provides exposure to broad healthcare space by tracking the Dow Jones U.S. Health Care Index. Holding 120 stocks, it is heavily skewed toward Johnson & Johnson (JNJ - Free Report) at 9.5% while other firms account no more than 6.7% share. The product has amassed nearly $2.1 billion in its asset base, while charges 44 bps in annual fees. It has a Zacks Rank #2 with a Medium risk outlook.

The healthcare space has been gaining on its non-cyclical nature, which provides a defensive tilt to the portfolio in a turbulent market. Additionally, rising M&A, faster drug approval and positive regulatory backdrop are giving a lift to the stocks.