Demand for Defense Sector ETF Surges Amidst Trump's Gearing Up for White House Return
Investing firm and ETF issuer VanEck reports a surge in demand for its VanEck Defense UCITS ETF. Launched in March 2023, the ETF has witnessed remarkable growth, gaining 55% in 2024 and an additional 8% in early 2025. Its assets under management currently stand at approximately $1.8 billion.
VanEck EU CEO Martijn Rozemuller attributes this momentum to the escalating global geopolitical tensions. Trump's recent call for NATO members to increase defense spending to 5% of GDP, a departure from the current 2% target, has further fueled investor interest.
"As the political landscape shifts, so does investor sentiment towards defense stocks," says Rozemuller. "Once considered taboo, these investments are now embraced due to supportive government policies."
The ETF's major holdings include prominent defense companies Palantir Technologies, Thales, Booz Allen Hamilton, and Leonardo.