Global X Europe Focused Defence Tech UCITS ETF

Issuer: Global X ETFs

Asset Class: Equity

TER: 40bps

Trading Currency: USD

Pays Income: False

Listing Date: 22 May 2025

Ticker: EDEF

ISIN: IE000WRQ9RR1

This investment vehicle offers targeted exposure to the European defence technology sector, a theme gaining prominence amid evolving geopolitical landscapes and increasing national security priorities. The fund invests in companies poised to benefit from rising defence budgets across the continent, focusing on firms that are key players in military technology, aerospace, and cybersecurity. These companies are not just traditional arms manufacturers but also innovators developing next-generation solutions like autonomous systems, advanced surveillance and reconnaissance technologies, and secure communication networks. By concentrating on European firms, the portfolio captures the specific dynamics of the region's defence industry, which is undergoing significant modernization and integration efforts.

The strategy is underpinned by the structural trend of increased defence spending by European nations, many of whom are striving to meet or exceed NATO's 2% of GDP spending target. This commitment provides a stable and long-term demand driver for the companies within the portfolio. An investment offers a way to participate in the growth of this strategically vital sector, which is less correlated with broader economic cycles and is instead influenced by government policy and international relations. It is suitable for those looking to diversify their equity holdings with a thematic allocation that capitalizes on the long-term imperative of national and regional security, tapping into the innovation and industrial capacity of Europe's leading defence technology firms.