From Financial Modeling Prep: 2025-01-20 02:46:10

Demand for defense sector ETFs has surged as President-elect Trump’s return to the White House looms. VanEck’s Defense UCITS ETF has seen significant inflows, up 55% in 2024 and 8% in 2025, with assets around $1.8 billion. CEO Martijn Rozemuller credits global geopolitical tensions for this growth.

Increased focus on defense spending, with Trump proposing NATO members raise spending to 5% of GDP. Analysts expect NATO to surpass the current 2% target. Government policies favor defense spending, making defense stocks more attractive to investors in uncertain times.

VanEck’s ETF holds top defense-related stocks like Palantir Technologies, Thales, Booz Allen Hamilton, and Leonardo. These companies are poised to benefit from increased defense investments globally. As geopolitical tensions persist, defense stocks are becoming a safe haven for investors.

Investors are turning to defense ETFs for stability amid geopolitical uncertainties. Government policies, especially from the U.S. and NATO, are expected to drive continued growth in the defense sector. With ongoing global tensions, the demand for defense stocks is likely to increase further.



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