iShares Global Aerospace & Defence UCITS ETF USD (Acc)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 35bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 24 Apr 2025 |
| Ticker: DFND |
| ISIN: IE000U9ODG19 |
This financial instrument offers targeted exposure to the global aerospace and defence sector by tracking the S&P Global Aerospace & Defense Capped 35/20 Index. It invests in a portfolio of leading companies from around the world that are engaged in the manufacturing, assembly, and distribution of aircraft and defence equipment. The underlying holdings include manufacturers of commercial and military aircraft, defence contractors, and producers of satellites, propulsion systems, and other critical components. The investment provides a convenient and diversified way to access a specialised segment of the industrials sector, capturing the performance of key players that are pivotal to global transportation and national security.
The investment case for the aerospace and defence industry is supported by several enduring structural drivers. Persisting geopolitical instability and evolving security threats are compelling governments worldwide to increase their defence budgets, ensuring a steady stream of long-term contracts for military suppliers. Concurrently, the commercial aerospace segment is propelled by the long-term growth in global passenger and cargo traffic, which fuels demand for new, more efficient aircraft. The sector is also at the forefront of technological innovation, with significant investment in areas like space exploration, unmanned aerial vehicles, and advanced satellite communications, opening up new avenues for growth.
Within a diversified investment strategy, this product can serve as a tactical or strategic satellite holding to gain exposure to these specific market trends. It may appeal to investors seeking to capitalise on increased global defence spending and the continuous expansion of civil aviation. As an accumulating fund, any dividends paid by the constituent companies are automatically reinvested back into the fund, which promotes the compounding of returns and is particularly suitable for investors with a long-term capital appreciation objective.
