Future of Defence UCITS ETF
| Issuer: HANetf |
| Asset Class: Equity |
| TER: 49bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 10 Dec 2025 |
| Ticker: NATE |
| ISIN: IE00041H4WT9 |
This investment vehicle offers exposure to the global defence sector, capitalizing on a significant structural shift in geopolitical priorities. In response to increasing global instability and conflict, nations, particularly within the NATO+ alliance, are substantially increasing their defence budgets. Many are now committed to meeting or exceeding the long-standing NATO guideline of allocating 2% of GDP to military spending. This renewed focus on national security is driving a multi-year super-cycle of investment in military hardware, advanced technology, and security services, creating a long-term growth opportunity for companies operating within this critical industry. The strategy aims to capture the performance of prime contractors and service providers that are poised to benefit from this sustained increase in government expenditure.
The portfolio provides a comprehensive approach to the modern defence landscape, extending beyond traditional aerospace and military equipment manufacturers. It strategically includes companies at the forefront of next-generation warfare and security, such as those specializing in cybersecurity, space systems, autonomous drones, and advanced communication technologies. By targeting firms that generate a majority of their revenue from defence-related activities in NATO and allied nations like Australia, New Zealand, Japan, South Korea, and Israel, the investment ensures a focused exposure to key players aligned with Western democratic security interests. This approach allows for participation in the entire defence value chain, from established industry giants to innovative technology firms shaping the future of security.
The underlying index is constructed using a rules-based methodology to identify and select relevant companies. This process is complemented by a rigorous screening process, which excludes firms involved in controversial weapons such as cluster munitions and anti-personnel mines, aligning the investment with specific ESG considerations. By focusing on a pure-play basket of securities, the strategy offers targeted access to the defence and security theme. As an accumulating vehicle, any dividends paid by the constituent companies are automatically reinvested back into the fund, which can help to compound returns and enhance long-term capital growth potential for investors.
