WisdomTree has launched the first defence ETF focused solely on European companies.
The launch comes as European countries prepare to increase their spending on defence in response to geopolitical challenges following Donald Trump’s re-election in the US and the ongoing war in Ukraine.
“Defence and security are underrepresented in many portfolios and have faced decades of underinvestment in Europe, resulting in a significant capability gap,” Pierre Debru, WisdomTree head of research, Europe, said.
“A structural shift is underway in Europe as nations increase defence budgets to meet NATO targets and respond to geopolitical challenges. WDEF is the first ETF dedicated to providing exposure to the European defence industry and is built around a timely and urgent theme focused on Europe’s push for strategic autonomy in defence amid rising geopolitical tensions.”
The WisdomTree Europe Defence UCITS ETF, which charges 0.4%, aims to track the performance of European companies involved in the defence industry, including manufacturers of equipment, parts or product involved in civil defence.
The index seeks to exclude companies involved in controversial weapons banned by international law, as well as companies that violate the United Nations Global Compact standards.
See also: Wellington adds global value fund
Nuclear ETF launch
WisdomTree has also announced the WisdomTree Uranium and Nuclear Energy UCITS ETF, which tracks the performance of companies involved in the most critical components of the uranium and nuclear energy value chain.
Debru added: “Nuclear power is increasingly seen to have a significant role to play in the future energy mix due to the political focus on the energy transition, the rise of geopolitical tensions with Russia and China, and the fast-growing energy demand from data centres, AI and cryptocurrencies.”
The strategy will list on the London Stock Exchange tomorrow (12 March), and charges a 0.45% total expense ratio.