Defense industry firms rise and fall in the short term when investors fear war or expect sudden peace. Instead, look at the big picture: defense is essential to our survival. I prefer strategic investment in defense ETFs over picking individual stocks, due to complex contract allocation and political factors. My top picks include Global X Defense Tech ETF, Select STOXX Europe Aerospace & Defense ETF, and WisdomTree Europe Defense Fund ETF.
Global X Defense Tech ETF has surged over 80% YTD, outperforming legacy defense ETFs like ITA due to its unique composition and global focus. SHLD excels by emphasizing tech-driven defense, broader geographic exposure—especially Europe—and a more diversified, growth-oriented portfolio than ITA. Despite higher fees and volatility, SHLD benefits from Europe's unprecedented rearmament cycle and the fusion of traditional and tech defense sectors.
Defense industry giants like Lockheed (LMT) and Raytheon (RTX) retain top spots, but innovative firms and European players are gaining ground. Boeing (BA) has fallen in defense revenue rankings, while newcomers like GE Aerospace (GE), SpaceX, and Palantir show strong growth potential. To capture defense innovation, I recommend ETFs such as SHLD, EUAD, and WDEF, with SHLD as a top pick for technology-driven exposure.
| XBER Exchange | US Country |
The fund is an investment entity that dedicates at least 80% of its net assets, as well as any borrowings for investment purposes, to securities that are part of the Global X Defense Tech Index. This index includes a range of securities, such as common stocks, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs), which are selected based on the criteria set by the Global X Management Company LLC. This company, which acts as an affiliate of the fund and serves as the investment adviser, owns and developed the underlying index. Unlike diversified funds, this fund concentrates its investments, making it non-diverse with a specific focus on the defense technology sector. The structure of the fund's investments is designed to offer investors exposure to a specific sector of the market, with the intention of potentially harnessing growth in the defense technology area.
The primary service offered by the fund is investment in securities that are part of the Global X Defense Tech Index. This includes a variety of financial instruments such as common stocks, which represent shares of ownership in companies within the defense technology sector; American Depositary Receipts (ADRs), which are a form of equity security that represents shares in a foreign company; and Global Depositary Receipts (GDRs), similar to ADRs but used to access shares of foreign companies in multiple markets. These investment vehicles are selected based on their alignment with the defense technology sector, aiming to capture the growth and return potential within this niche market.