Defense ETFs: Which is the best?

How to invest in aerospace and defense using ETFs

0.35% p.a. - 0.55% p.a.
annual total expense ratio (TER) of defense ETFs
on aerospace and defense, which are tracked by ETFs
on aerospace and defense
 
The best indices for defense ETFs

Which ETFs focus on military and defense stocks?

The military and defense industry is a controversial topic. But even though stocks from the armaments sector are a no-go investment for many for understandable moral reasons, the industry flourishes especially in troubled times. This is because the customers of the arms companies are almost exclusively states, which usually have large budgets. In addition, the technologies of the aerospace, military and defense companies are often also used in civil aviation and space travel after their introduction.

Companies that are listed on the stock exchange and active in the military and defense industry can be combined into an equity index and made investable via an ETF.

In this investment guide you will find all ETFs that track companies from the military and defence industry.
 

MarketVector Global Defense Industry performance

1 month: -1.85%
1 year: 46.15%
 

Aerospace and defense ETFs in comparison

The most important factors at a glance

When choosing a defense ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all defense ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all defense ETFs in detail
Compare all defense ETFs in a chart

Provider
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
VanEck Defense UCITS ETF AIE000YYE6WK5 1,220 0.55% p.a. Accumulating Ireland Full replication
HANetf Future of Defence UCITS ETFIE000OJ5TQP4 303 0.49% p.a. Accumulating Ireland Full replication
Invesco Defence Innovation UCITS ETF AccIE000BRM9046 4 0.35% p.a. Accumulating Ireland Full replication
Global X Defence Tech UCITS ETF USD AccumulatingIE000JCW3DZ3 3 0.50% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 20/12/2024

 

Return comparison of all aerospace and defense ETFs

The table shows the returns of all defense ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
VanEck Defense UCITS ETF A 2.23% 12.75% 19.89% 50.13% -
HANetf Future of Defence UCITS ETF 6.95% 11.37% 18.73% 43.70% -
Global X Defence Tech UCITS ETF USD Accumulating 8.13% - - - -
Invesco Defence Innovation UCITS ETF Acc - - - - -

Source: justETF.com; As of 30/11/2024; Calculations in GBP including dividends