ETF provider HANetf’s Future of Defence Ucits ETF has been listed on the Warsaw Stock Exchange (GPW).
The Nato ETF, which invests in companies domiciled in Nato and Nato-allied countries, has gained nearly $1.8 billion in 2025, bringing its assets under management (AuM) to approximately $2.8 billion. The strategy offers exposure to defence firms operating in well-regulated jurisdictions and aligned with collective security objectives, shared the provider.
GDP per capita PPP data from the World Bank suggest that Poland’s GDP-adjusted income is likely to overtake that of Japan by 2026. Poland is on track to spend almost 5% of GDP annually on defence – a level most other European Nato members have targeted for a decade from now, cited HANetf.
Defence spending becomes “less of a problem” – even for ESG
In 2024, Nato members collectively spent $1.5 trillion on defence, accounting for 55% of global military expenditure. That figure represented a 9% annual increase and was 31% higher than in 2015. With nearly all Nato members now meeting or exceeding the 2% of GDP spending target, political momentum is building for higher thresholds of 3% to 5%. Nato has formally agreed to pursue a 5% target, which, if met by European members, would require historic budget expansions.
The Nato ETF also provides exposure to cybersecurity companies, reflecting the alliance’s focus on digital defence. About 1.5% of Nato’s new 5% spending target is earmarked for non-core areas such as cyber.
Since the launch of the Nato ETF, HANetf has expanded its defence product suite with two further strategies: the Future of European Defence Ucits ETF, which has built €146.86 million in AUM, and the Future of Defence Indo-Pac ex-China Ucits ETF.
Hector McNeil, Co-Founder and Co-CEO of HANetf, commented: “We’re delighted to list the Future of Defence UCITS ETF on the Warsaw Stock Exchange. Poland is one of Europe’s fastest-growing economies, with a rapidly expanding investor base that is increasingly turning to ETFs. At the same time, Poland is playing a leading role in Europe’s defence renaissance – both as a front-line NATO member and as one of the highest spenders on defence in the alliance. The Nato ETF is designed to capture this powerful shift.”
