Future of European Defence UCITS ETF
| Issuer: HANetf |
| Asset Class: Equity |
| TER: 3900bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 11 Apr 2025 |
| Ticker: NAVY |
| ISIN: IE000I7E6HL0 |
This investment vehicle offers targeted exposure to the global defence industry, capitalizing on a significant shift in the geopolitical landscape. Following recent global conflicts, many European and NATO member countries have substantially increased their commitments to defence spending, with a renewed focus on meeting and exceeding the long-standing guideline of allocating 2% of GDP to military budgets. This surge in government expenditure creates a powerful and sustained tailwind for companies operating within the military and defence sectors, suggesting a long-term growth trajectory for the industry as nations prioritize rearmament and modernization of their armed forces.
The underlying portfolio consists of publicly traded companies from NATO+ allied nations that are poised to benefit from this increased spending. To be included, these firms must generate over 50% of their revenue from the defence sector. This includes a diverse range of activities such as aerospace manufacturing, the development of advanced military hardware, cybersecurity solutions for national security, and sophisticated satellite and communication technologies. The strategy provides a comprehensive investment into the entire defence ecosystem.
Furthermore, the investment incorporates responsible screening criteria, specifically excluding companies involved in the production of controversial weapons such as cluster munitions and anti-personnel landmines. This approach allows investors to participate in the growth of the defence theme while adhering to certain ethical considerations. It represents a strategic allocation for those looking to gain exposure to companies fundamental to national and international security in an era of renewed great power competition.
The underlying portfolio consists of publicly traded companies from NATO+ allied nations that are poised to benefit from this increased spending. To be included, these firms must generate over 50% of their revenue from the defence sector. This includes a diverse range of activities such as aerospace manufacturing, the development of advanced military hardware, cybersecurity solutions for national security, and sophisticated satellite and communication technologies. The strategy provides a comprehensive investment into the entire defence ecosystem.
Furthermore, the investment incorporates responsible screening criteria, specifically excluding companies involved in the production of controversial weapons such as cluster munitions and anti-personnel landmines. This approach allows investors to participate in the growth of the defence theme while adhering to certain ethical considerations. It represents a strategic allocation for those looking to gain exposure to companies fundamental to national and international security in an era of renewed great power competition.