3 ETFs for Gaining Exposure to Diversified Defence Stock

The global defence industry is set for massive growth as governments increase spending to strengthen national security and modernise military capabilities. Long-term tailwinds include rising defence budgets, along with advances in artificial intelligence and other defence technologies.

Defence companies can benefit from government procurement programmes and long-term national security priorities, unlike many industries that are tied to consumer or economic cycles.

This combination of structural spending growth and rapid technological innovation can create attractive long-term opportunities for investors. Here are the top three ASX defence ETFs that can help investors gain exposure to this trend.

1. Global X Defence Tech ETF (ASX: DTEC)

Global X Defence Tech ETF (ASX: DTEC) provides targeted exposure to defence companies across developed and emerging markets, with semi-annual rebalancing.

The ETF has a 0.50% annual management fee and was launched on 7 October 2024. It held 49 companies as of 31 August 2026, using a modified market-capitalisation weighting approach.

Palantir Technologies is the largest holding at 10.8%, followed by RTX at 9.3%, General Dynamics at 8.6%, and Lockheed Martin at 8.3%.

The ETF has exposure to both traditional defence contractors and technology-focused defence companies.

DTEC makes semi-annual distributions. Its latest distribution was $0.47 per unit, which was paid on 2 July 2026, while its 12-month trailing yield stood at 3.06%.

Global defence spending has grown at an annualised rate of 4.3% over the past 40 years, while national-security spending has also increased as governments focus more on technologies such as drones and cybersecurity.

2. VanEck Global Defence ETF (ASX: DFND)

VanEck Global Defence ETF (ASX: DFND) is a defence ETF with exposure to global companies and provides access to defence businesses that broad benchmarks often under-represent.

The ETF tracks the MarketVector Global Defence Industry (AUD) Index and was launched on 10 September 2024. Its management fee is 0.65% per year.

DFND held 44 companies as of August 2026, with the United States being its largest country allocation at 49.57%, followed by South Korea, France and Italy.

DFND pays dividends once a year and has produced a 33.19% total return since inception.

Rising government defence budgets support the ETF's investment case because demand for technologies such as AI and cybersecurity is also growing.

3. Betashares Global Defence ETF (ASX: ARMR)

Betashares Global Defence ETF (ASX: ARMR) provides access to the global defence sector through up to 60 leading companies that earn more than 50% of their revenue from military and defence equipment or defence technology.

The ETF is designed to track the VettaFi Global Defence Leaders Index, which began on 2 October 2024. It charges a 0.55% management fee each year and pays distributions at least annually.

ARMR only includes companies headquartered in NATO member countries and major NATO allies. It provides exposure to markets such as the US, France, Japan, South Korea and Australia, while focusing on the growing global defence and security spending theme.

The index had 60 components as of 31 August 2026, and ARMR achieved a 28.78% annualised return since inception to that date.

Source : Company Announcement