- $50 billion-plus in around 15 Defence and Military Tech ETFs, ranging from large-cap stalwarts like ITA ($15.1B) and DFNS ($8.9B) to innovation-focused funds like FITE ($108M) targeting drones, cyber and space technologies.
- Sector returns of 45–100% through 2025, driven by record global defence spending of $2.7 trillion in 2024 and NATO's commitment to raise member budgets from 2% to 5% of GDP by 2035.
- Equal-weighted and tech-focused ETFs outperforming – XAR delivered a 65% one-year return, while SHLD posted 101% gains as defence AI and autonomous systems attracted investor interest.
Global defence spending reached $2.7 trillion in 2024, the highest level ever recorded, with NATO members increasing their budgets by 8.9% year-on-year. In 2025, NATO agreed to raise defence spending targets from 2% to 5% of GDP by 2035, signalling sustained long-term demand for aerospace and defence equities. The sector delivered strong returns in 2025, with leading ETFs posting gains of 45–100% over the trailing 12 months. Large-cap funds like ITA and PPA dominate total assets, while equal-weighted and innovation-focused ETFs (XAR, SHLD, FITE) have outperformed on a risk-adjusted basis.
Below is a curated list of exchange-traded funds (ETFs) that focus on defence, aerospace and advanced military technologies. These ETFs provide investors with diversified exposure to companies engaged in areas such as defence contracting, aerospace engineering, cybersecurity and next-generation warfare systems. The table includes each fund's name (linked to its official provider page), ticker symbol, most recent assets under management (AUM) and primary investment focus, offering a clear snapshot of the scale and market presence of each ETF within the global defence investment landscape.
| ETF Name | ETF Ticker | AUM (USD) | Focus |
|---|---|---|---|
| iShares U.S. Aerospace & Defense ETF | ITA | $15.1B | Large-cap US defence leaders |
| VanEck Defense UCITS ETF | DFNS | $8.9B | Global defence industry |
| Invesco Aerospace & Defense ETF | PPA | $7.6B | Diversified aerospace & defence |
| Global X Defense Tech ETF | SHLD | $5.1B | Defence technology & AI |
| SPDR S&P Aerospace & Defense ETF | XAR | $5.6B | Equal-weighted US A&D |
| WisdomTree Europe Defence UCITS ETF | WDEF | $4.1B | European defence companies |
| HANetf Future of Defence UCITS ETF | NATO | $2.85B | NATO & allied defence spending |
| First Trust Indxx Aerospace & Defense ETF | MISL | $1.6B | US aerospace & defence index |
| ARK Space & Defense Innovation ETF | ARKX | $508M | Space & defence innovation |
| SPDR S&P Kensho Future Security ETF | FITE | $108M | Drones, cyber & future security |
| Themes Transatlantic Defense ETF | NATO | $79M | NATO transatlantic defence |
| Select STOXX Europe Aerospace & Defense ETF | EUAD | $46M | European aerospace & defence |
| U.S. Global Technology and Aerospace & Defense ETF | WAR | $28M | US tech & aerospace/defence |
| Gabelli Commercial Aerospace and Defense ETF | GCAD | $10M | Commercial aerospace & defence |
| Pacer Solactive Whitney Future of Warfare ETF | FOWF | $1.4M | Future of warfare technology |
Source. Global Institute of National Capability, February 2026
