VanEck Defense UCITS ETF
- Exposure to companies at the forefront of global defence industry
- Diversified access to the market leaders
- A transparent, convenient investment via our Defence ETF
Amid global uncertainty, the topic of security and defence returned to the financial investors’ minds. VanEck‘s Defence ETF provides investors with an opportunity to invest in the leaders of defence technologies, large-scale cybersecurity and providers of relevant services.
Traditionally, defence investments have been a sensitive topic in the Developed World. The share of the EU Defence Spending dipped below 2% after the fall of the Berlin Wall and the USSR and has not recovered since. However, due to the recent geopolitical conflicts and global security worries, the paradigm started shifting. The Western European governments, perennial violators of NATO’s 2% military expenditure rules, announced serious investments into defensive infrastructure and stockpiles as well as the intent to stick to the 2% rule going forward. The ongoing war in Ukraine showed deficiencies in countries lack of ammunitions capacities and put a spotlight on a chronic underinvestment in maintenance.
Defence companies often invest heavily in research and development to create cutting-edge technology and products. This focus on innovation can lead to advancements that spill over to areas beyond just military use.
VanEck‘s Defence ETF adopts a robust approach to select and screen the companies included in the investment strategy, based on its long-standing experience in ETF construction. Only “pure play” companies (i.e., companies with at least 50% revenues in defence) are eligible to enter the Fund.
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