Hedging Against North Korea? This 'War Machine' Portfolio Is Beating The Market

In a recent report coming from Reuters, Jack Kim wrote that North Korean leader Kim Jong Un has commanded his military to be ready to fire nuclear weapons at a moment's notice. This comes as North Korean state media officials have noticed growing threats from neighboring countries.

While many believe that North Korea currently lacks the technological expertise to fire transoceanic missiles, there is a way to hedge against a North Korean attack. Investors can buy the War Machine Portfolio by Motif.

Related Link: U.S. Intelligence Chief: North Korea's Plutonium Reactor Has Been Restarted

The portfolio is a collection of AeroSpace Defense Products and Services with companies such as Lockheed Martin Corporation (NYSE: LMT) and Raytheon Company (NYSE: RTN). The portfolio has performed quite well, up 4.3 percent in the past 12 months and significantly outperforming the S&P 500 over the same period.

Going forward, if there is any military escalation between North Korea and the United States, the War Machine Portfolio has the potential to return tremendous value to shareholders as many of the companies in its portfolio may be hired by the government to fill military orders. It just so happens that the War Machine Portfolio has delivered diversified and positive returns even among the general market decline.

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