ETF provider First Trust has floated two new thematic strategies on the London Stock Exchange.
Launched in collaboration with Indxx, the First Trust Indxx Global Aerospace & Defence UCITS ETF will provide exposure to global companies that derive at least 50% of their revenues from the traditional and advanced aerospace or defence sectors.
The ETF charges a 0.65% total expense ratio.
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Rahul Sen Sharma, President and Co-CEO at Indxx said: “The significant increase in geopolitical tensions highlighted by the Russia-Ukraine war and the Israel-Palestine conflict has led to a surge in military spending globally.
“In 2023, global defence expenditures reached approximately $2.44trn, with the US, China, Russia, India, and Saudi Arabia collectively accounting for nearly 61% of this spending.
“Fuelled by this global military expenditure, the demand for advanced defence technologies and capabilities has also increased. Our Global Advanced Aerospace and Defence Index is designed to provide targeted exposure to the top companies in this sector, enabling investors to capitalise on this trend.”
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Meanwhile, the firm has also launched the First Trust Bloomberg Global Semiconductor Supply Chain UCITS ETF, which tracks the Bloomberg Global Semiconductors Supply Chain Index.
It aims to capture the performance of companies in the semiconductor manufacturing value chain and semiconductor device companies with exposure to high growth and innovative end markets.
The fund charges a 0.60% total expense ratio.
The latest launches brings First Trust’s UCITS ETF products to a total of 36.
