HANetf has launched the Future of European Defence Ucits ETF and said it marked the first time a European firm had introduced a Europe-focused defence ETF. The ETF debuted on Deutsche Börse Xetra and Euronext Paris, with listings on London Stock Exchange and Borsa Italiana to follow.
The ETF tracks the VettaFi Future of Defence Ex US Index, following a methodology similar to HANetf’s Future of Defence Ucits ETF, which has $1.8 billion in assets under management. Unlike broader defence ETFs, the latest excludes US companies to provide greater exposure to European-listed firms benefiting from increased military spending and strategic rearmament.
European NATO members, facing rising geopolitical tensions and uncertain US support, are increasing defence budgets after a decade of underinvestment. The ETF seeks to capture this trend while also excluding companies involved in controversial weapons.
Hector McNeil, co-CEO of HANetf, emphasised the firm’s European identity, stating: “Europe must build its own defence independence. We felt it was crucial to offer investors an efficient way to invest in the European defence sector.”
With Europe prioritising homegrown defence technology, the ETF aims to provide investors with exposure to the continent’s growing military self-sufficiency, aligning with NATO’s strategic goals.
