WisdomTree’s new thematic ETF seeks to capture Europe’s leading defence companies

WisdomTree Europe Defence UCITS ETF (WDEF) launched on 11 March 2025. Since launch, WDEF has achieved $554m in net new flows in its first two weeks of trading and currently has $511m in assets under management.

Adria Beso, Head of Distribution, Europe, WisdomTree, said: “The European defence story is evolving rapidly. European governments are not making short-term, reactionary purchases – they appear to be redesigning their defence strategies for the long term. The EU recently unveiled a comprehensive plan to mobilise €800bn to bolster its defences^[3], while military and political leaders are supporting the launch of a £100bn Defence Security & Resilience bank^[4] for rearmament in the UK and Continental Europe. These are just two of the many signals that highlight we are at the start of a multi-year transformation.

“Given Europe’s historic underinvestment in defence, the WisdomTree Europe Defence UCITS ETF was created to capture the upside of Europe’s multi-year defence expansion. Europe has historically relied on US defence contractors for high-end military technology, but policy changes are prioritising domestic suppliers. The European Defence Industrial Strategy (EDIS) is supporting a shift toward locally sourced defence systems, with targets to procure 50% of EU military equipment from European manufacturers by 2030 and 60% by 2035^[5]We, therefore, expect European defence procurement to predominantly benefit European companies. This view is reflected in investor appetite for the ETF, which provides exposure to the European companies likely to be best placed to capitalise on this critical megatrend.

“European defence stocks represent an industrial transformation that investors are still adjusting to. The shift in spending patterns, restructuring defence supply chains, and long-term contract backlogs make European defence one of the strongest secular growth stories in today’s market.”

Flow and AuM data is sourced from WisdomTree as of 21 March 2025.

Source: WisdomTree