European ETF provider HANetf will soon launch of an Indo-Pacific ex-China defence strategy ETF, targeting regional aerospace, security and military-linked companies.
The product, Indo-Pacific ex-China defence strategy, is aimed at providing targeted exposure to companies in the region engaged in defence, aerospace and security. The fund is expected to list in July and will follow a transparent, rules-based index.
The new strategy will sit within HANetf’s defence range, which includes the Future of Defence Ucits ETF and the Future of European Defence Ucits ETF. The ETF’s underlying index will focus on listed companies domiciled in Indo-Pacific markets, excluding China, with significant revenue exposure to the defence and security sectors.
As with Europe, the Indo-Pacific region is undergoing a structural shift in its defence posture amid rising geopolitical tensions, highlighted the provider. At the recent Shangri-La Dialogue in Singapore, US defence secretary Pete Hegseth called on Asian allies to emulate Europe’s rapid rearmament. “Nato members are pledging to spend 5% of their GDP on defence – even Germany,” he said.
HANetf launches European Defence ETF
India has directed 75% of its defence capital budget to domestic manufacturers, while Japan is pursuing its largest military expansion since the 1950s and aims to reach 2% of GDP in defence spending by 2027.
South Korea is targeting 5% of the worldwide arms market within two years. Taiwan has also increased its defence budget by nearly 50% since 2015 and is investing heavily in indigenous drone and anti-drone systems, cited the provider.
Hector McNeil, co-founder and co-CEO of HANetf, commented: “The Indo-Pacific is fast becoming the geopolitical centre of gravity for the 21st century. From Taiwan to the Indian Ocean, rising tensions and a shift toward defence self-reliance are driving a historic rearmament cycle. Just as our Nato and European Defence ETFs have helped investors access the new realities of global security, this strategy offers targeted exposure to companies within the Indo-Pacific region.”
