The first and only European Defence ETF achieves rapid growth as investor demand aligns with structural shifts in defence policy

The WisdomTree Europe Defence UCITS ETF (WDEF), launched on 11 March 2025, has surpassed $1 billion AUM within its first month of trading. This achievement underscores the strong investor conviction in Europe’s long-term defence transformation and highlights the ETF’s unique positioning in the market as the only ETF focused exclusively on European defence companies.

Adrià Beso, Head of Distribution, Europe at WisdomTree, commented: “Investors are turning towards dedicated European defence ETFs to gain targeted exposure to a sector supported by long-term government spending and strategic autonomy initiatives. Crossing the $1 billion mark within the first month speaks volumes about the conviction investors have in Europe’s long-term defence transformation.”

WisdomTree Europe Defence UCITS ETF was designed to offer precise exposure to the European companies driving this shift. The early AUM momentum reflects a strong alignment between policy, investor interest, and market opportunity. The ETF delivers transparency and thematic purity, ensuring the strategy provides targeted access to the companies best positioned to benefit from structural shifts in European defence spending and strategic autonomy. At the same time, the ETF helps channel investment into the region’s defence sector without compromising on responsible investing principles.

The index tracked by WDEF, the WisdomTree Europe Defence UCITS Index, seeks to exclude companies that are involved in controversial weapons banned by international law, such as cluster munitions, antipersonnel landmines, biological and chemical weapons, as well as depleted uranium weapons and white phosphorus weapons. The index additionally excludes companies that violate international norms and standards, such as United Nations and OECD guidelines or are subject to UN, EU or US sanctions.

Beso added: “When investing in defence-themed ETFs, it’s essential to look beyond the product name and examine the underlying holdings and regions. This helps investors understand the true nature of their exposure, such as whether it’s focused entirely on European companies driving long-term strategic shifts in European defence, or simply a global exposure. This approach can also help investors understand if any companies are in countries subject to sanctions.”

Flow and AUM data is sourced from WisdomTree as of 11 April 2025.

Source: WisdomTree