WisdomTree’s European defence ETF, launched on 11 March 2025, has surpassed $1 billion AUM within its first month of trading.
A press statement from the US ETP sponsor said that the figure “underscores the strong investor conviction in Europe’s long-term defence transformation and highlights the ETF’s unique positioning in the market as the only ETF focused exclusively on European defence companies”.
Adrià Beso, Head of Distribution for Europe at WisdomTree, said: “Investors are turning towards dedicated European defence ETFs to gain targeted exposure to a sector supported by long-term government spending and strategic autonomy initiatives.
“Crossing the $1 billion mark within the first month speaks volumes about the conviction investors have in Europe’s long-term defence transformation.”
The UCITS ETF was designed to offer exposure to the European companies driving this shift.
The index tracked by the ETF, the WisdomTree Europe Defence UCITS Index, seeks to exclude companies that are involved in controversial weapons banned by international law, such as cluster munitions, antipersonnel landmines, biological and chemical weapons, as well as depleted uranium weapons and white phosphorus weapons.
The index also excludes companies that violate international norms and standards, such as United Nations and OECD guidelines or are subject to UN, EU or US sanctions.
Beso added: “When investing in defence-themed ETFs, it’s essential to look beyond the product name and examine the underlying holdings and regions.
“This helps investors understand the true nature of their exposure, such as whether it’s focused entirely on European companies driving long-term strategic shifts in European defence, or simply a global exposure. This approach can also help investors understand if any companies are in countries subject to sanctions.”
