Defence ETFs back in focus while tailwinds emerge
Rising defence spending is an emerging global megatrend which is driven by elevated geopolitical tensions and government commitments to record military budgets and these ASX-listed defence ETFs provide diversified exposure to leading defence manufacturers and advanced military technology.
Defence ETFs return to spotlight as global military spending accelerates
VanEck Global Defence ETF (ASX: DFND)
VanEck Global Defence has become one of the best performers on the Australian market as it benefits from rising global defence budgets, geopolitical tensions and military modernisation.
Over the past 12 months, DFND has surged around 78% and the ETF tracks the MarketVector Global Defence Industry Index.
The United States represents just over 50% of the portfolio while European countries such as France, Italy, Sweden and Germany also hold meaningful weightings as NATO members lift defence spending.
Aerospace and defence companies dominate the portfolio at roughly 69% while the ETF has an expense ratio of 0.65% per annum and held 36 companies as of December 2025.
The ETF’s largest holdings include important defence companies involved in missile systems, radar, avionics, soldier systems and intelligence software which highlights the strategic nature of the portfolio.
Betashares Global Defence ETF (ASX: ARMR)
Betashares Global Defence has emerged as a key vehicle to gain exposure to the global defence theme which is being supported by rising military and security spending across NATO-aligned countries.
Over the past 12 months, ARMR has risen by more than 60% which reflects strong performance from defence manufacturers, infrastructure suppliers and security technology providers.
A key differentiator of ARMR is its broad exposure across the defence ecosystem which combines traditional defence manufacturing leaders with newer segments and the ETF held 52 companies as of November 2025.
ARMR currently offers an annual yield of around 2.07% which provides a modest income stream alongside its capital growth profile and The ETF has an expense ratio of 0.55% per annum.
(Source: Company Reports)
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