BNP Paribas Asset Management has launched an ETF focussed on European defence stocks on the Euronext Paris exchange.
The “Easy Bloomberg Europe Defense (sic) ETF” will also “soon” be available on the Deutsche Börse Xetra, Borsa Italiana and Six Swiss Exchange.
Tracking the performance of listed European defence companies, the fund is expected to benefit from a massive increase in government spending on defence and security following Russia’s unprovoked invasion of Ukraine.
The launch follows the recent launch of similar European defence-focussed ETFs by Amundi, WisdomTree and HanETF.
The fund, which has a management fee of 18 bps, replicates the Bloomberg Europe Defense Select Index, which comprises around 30 European defence companies listed on major European stock exchanges.
The fund provides investors with a diversified portfolio of companies involved in the defence industry, including aerospace, defense electronics, and shipbuilding.
Marie Sophie Pastant, Head of ETF/Index portfolio management at BNP Paribas Asset Management said: “Instead of a standard defence sector screen, the index uses Bloomberg’s business intelligence to identify companies with real strategic relevance to the defence ecosystem.
“The fund follows a market capitalization-weighted methodology, enhanced by specific diversification rules to ensure balanced exposure. We believe this approach offers a compelling investment opportunity for those seeking exposure to the defence industry.”
