US-based ETP sponsor WisdomTree has launched two ETFs: one that will invest in European defence companies and a second that will target investments into uranium and nuclear industry.
Both Ucits ETFs launched today on Börse Xetra and Borsa Italiana with total expense ratios (TER) of 0.40% and 0.45%, respectively. The ETFs will list on the London Stock Exchange tomorrow.
The defence ETF seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe Defence Ucits Index which tracks the performance of European companies involved in the defence industry, including manufacturers of civil defence equipment, parts or products, defence electronics and space defence equipment.
The index seeks to exclude companies that are involved in controversial weapons banned by international law, such as cluster munitions, antipersonnel landmines, and biological and chemical weapons, as well as companies that violate the UNGC (United Nations Global Compact) standards. WisdomTree claims it is the first ETF of its kind focused solely on European defence companies.
The WisdomTree Uranium and Nuclear Energy Ucits ETF (NCLR) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Uranium and Nuclear Energy Ucits Index.
The proprietary index is designed to track the performance of companies involved in the most critical components of the uranium and nuclear energy value chain.
Pierre Debru, Head of Research, Europe, WisdomTree, said: “Nuclear power is increasingly seen to have a significant role to play in the future energy mix due to the political focus on the energy transition, the rise of geopolitical tensions with Russia and China, and the fast-growing energy demand from data centres, AI and cryptocurrencies.”
Debru added, “Defence and security are underrepresented in many portfolios and have faced decades of underinvestment in Europe, resulting in a significant capability gap.
“A structural shift is underway in Europe as nations increase defence budgets to meet NATO targets and respond to geopolitical challenges. WDEF is the first ETF dedicated to providing exposure to the European defence industry and is built around a timely and urgent theme focused on Europe’s push for strategic autonomy in defence amid rising geopolitical tensions.”
