What does this trend mean for your investments?
Something remarkable has happened in recent months. Big names like BlackRock and BNP Paribas suddenly launched new investment funds focused on the European defence industry. And not just any funds: ETFs that make it easy to spread your money across an entire sector with just one purchase.
You might recognise this: Europe feels tense, with conflicts near the borders and Trump saying Europe should not rely so much on America. Governments are now spending more on ammunition, tanks and other arms. It’s no wonder demand for these funds is rising fast. Have you considered if this fits your portfolio?
Investors are piling into defence
BlackRock launched its new iShares defence ETF this week on the Amsterdam and Frankfurt stock exchanges. BNP Paribas did the same in Paris, and will soon follow in Germany, Italy and Switzerland. Other big players, like Amundi and WisdomTree, were even a bit earlier.
A local example: if you walk across the Zuidas or cycle through Beatrixpark, you suddenly hear the word ‘defence’ more often. Why? Because this year alone, $8.4 billion worldwide flowed into defence ETFs, with $2.7 billion going directly to European versions. That’s already more than double the amount for all of 2024 .
Why choose a defence ETF?
With an ETF, you buy a small slice of several companies in one go. No need to choose between a tank maker in The Hague or an arms company in Paris. These funds are popular because they make it easy to follow a broad trend.
Here’s a personal story: My neighbour in Rivierenbuurt always thought you had to choose between ethics and returns with defence stocks. Now he sees that even cautious funds, like those from Allianz and UBS, have loosened their strict rules.
What does this mean for you as an investor?
You might wonder: Should I get involved? It’s good to be aware of risks, but one thing is clear: defence is back on investors’ radars. The demand for weapons and technology is growing. If you want diversification and want to ride this trend, check if a defence ETF matches your goals.
Want to know exactly which companies are in such a fund? Or how to buy a defence ETF on Beursplein 5 yourself? Check your broker’s website, or look up more information from trusted sources like Morningstar .
Conclusion: Will defence stay hot on the stock market?
Nobody knows for sure if this trend will continue, but the numbers don’t lie. European defence stocks are in demand, and funds are moving fast. Still in doubt? Talk to other investors in your area, or share your thoughts below. What will you do: stay away, or jump on this moving train?
