VanEck today listed on Borsa Italiana il VanEck Defense UCITS ETFthe only ETF available in Europe that allows investors to global exposure in companies active in the defense and security sector.
The topic of defense is becoming popular again
“In Europe, defense is traditionally a sensitive issue. Since the beginning of the war in Ukraine, the view on security and defense policy has started to change, as the need for a security policy has become more evident,” he explains Martijn Rozemuller, CEO of VanEck Europe. “Because of theRussian invasion of Ukrainetensions in Asia and global uncertainty, the the issue of security and defense is once again topical After many years”.
Many Western European governments, which have repeatedly missed NATO’s two per cent military spending target in the past, have now announced that they will make significant investments in defense infrastructure and supplies, committing to meet the two percent in the future. “Companies in the security and defense sector could benefit from this development in the coming years“says Rozemuller.
How ETFs work
The VanEck Defense UCITS ETF is currently the only ETF available in Europe that offers investors access to these sectors. With a pure-play approach, the fund aims to invest in companies that will generate the majority of their revenues in the future in the following areas: defensive equipment, aerospace technology, communications systems and services, satellite technology, unmanned aerial vehiclessecurity software, IT hardware and services, computer security software, training and simulation solutions, computer forensics, tracking devices and electronic authentication or biometric identification applications.
The ETF tracks the MarketVector Global Defense Industry Index and excludes controversial investments such as those in conflict with the Oslo Convention on Cluster Weapons and the Ottawa Treaty on Landmines.
Companies that manufacture or supply critical components for biological weapons are also excludedchemical and incendiary, white phosphorus, depleted uranium and nuclear weapons outside the international non-proliferation treaty.