From Financial Modeling Prep: 2025-01-20 02:47:29

VanEck’s Defense UCITS ETF has seen impressive growth, surging by 55% in 2024 and up 8% in early 2025 with $1.8 billion in assets under management. The ETF tracks companies in the defense and aerospace industries, benefiting from global geopolitical tensions and investor optimism.

President-elect Donald Trump’s proposal to increase NATO defense spending to 5% of GDP has boosted investor sentiment in the defense sector. This shift in attitude has made defense sector ETFs more attractive to investors seeking stability amidst uncertainty, with VanEck’s ETF emerging as a top performer.

Top holdings in VanEck’s Defense ETF include Palantir Technologies, Thales, Booz Allen Hamilton, and Leonardo. These companies are well-positioned to benefit from increasing defense budgets and the global push for enhanced security measures, making the ETF an appealing option for investors.

The future of defense ETFs looks promising as global geopolitical tensions rise, driving demand for defense stocks as a safe investment. With governments considering increasing defense budgets in response to Trump’s proposals, ETFs focused on defense stocks are expected to remain a strong choice for investors seeking growth in the sector.



Read more at Financial Modeling Prep:: Growing Demand for VanEck Defense UCITS ETF Ahead …