BlackRock and Global X Rush to Tap Europe’s Defence Boom as WDEF Hits $1 Billion

Europe’s Defence Sector Captures Investor Imagination

Europe’s strategic landscape is changing fast. In response to the U.S. pulling back support for Ukraine and President Trump demanding higher NATO contributions, the European Union has unveiled an €800 billion rearmament plan. Focus areas include advanced weaponry, cybersecurity, drone systems, and AI-powered military infrastructure.

This renewed spending spree has made European defence one of the hottest investment themes of 2025. Defence stocks are outperforming broader markets sharply, with the STOXX Europe Total Market Defense Capped Index soaring 41% year-to-date, compared to a 1.2% decline for the broader STOXX Europe 600.

ETF issuers have scrambled to meet the surging demand from investors wanting pure exposure to Europe’s defence sector—a theme that is both strategic and politically significant.

BlackRock and Global X Announce Europe-Focused Defence ETFs

Joining the rush, according to Ignites Europe, BlackRock and Global X are preparing to launch Europe-only defence ETFs, after previously offering global aerospace and defence exposure.

The move follows the successful debut of WisdomTree’s Europe Defence UCITS ETF (WDEF) and subsequent entry by HANetf, and BNP Paribas and Amundi having received approval in Luxembourg. While the upcoming BlackRock and Global X products are expected to capitalize on European government spending plans, neither issuer is likely to apply controversial weapons exclusions, given the already narrow investable universe.

Global X said it is committed to offering investors targeted access to sectors with “strong growth potential while supporting Europe’s strategic priorities around security.” BlackRock’s new entry is expected to compete directly with WDEF in delivering granular, Europe-only defence exposure—a sign of how strategic this theme has become.

WDEF Crosses $1 Billion in Just One Month

WisdomTree’s WDEF has rapidly emerged as a standout success, attracting over $1 billion in assets within its first month of trading.

Designed to offer focused exposure exclusively to European defence firms, WDEF screens out companies involved in controversial weapons and those violating international norms, ensuring responsible investment principles align with defence spending trends.

According to WisdomTree’s Head of Distribution in Europe, Adrià Beso, WDEF’s explosive growth "underscores strong investor conviction" in Europe’s long-term shift toward strategic autonomy. The ETF’s thematic purity—avoiding global exposure—gives it a distinct advantage at a time when investors want to bet directly on European rearmament.

The early success also highlights how ETF investors are looking beyond generic labels, scrutinizing whether products truly capture the European defence story or merely offer global blends.

Defence ETF Performance and Flows: Momentum Still Strong

Across the broader defence ETF market, performance and inflows remain robust:

• VanEck Defense UCITS ETF (DFEN) rose +1.81% WTD and is up +22.50% YTD, with $31.6M of inflows last week, continuing to dominate the global defence space.
• Future of Defence UCITS ETF (ASWC) advanced +2.24% WTD, gaining +17.37% YTD, and pulled in $1.7M in weekly inflows.
• WisdomTree Europe Defence UCITS ETF (WDEF) slipped -1.52% WTD but remains positive +3.88% YTD, buoyed by $58.2M in fresh inflows last week and an eye-popping $1.26 billion of AUM since launch.
• iShares Global Aerospace & Defence UCITS ETF (DFNDA) delivered a +2.49% WTD gain and is up +5.48% YTD, gathering $2.9M of weekly inflows.
• Global X Defence Tech UCITS ETF (ARMR) dipped slightly -0.45% WTD but remains +23.82% YTD, highlighting ongoing momentum in defence technology themes.

Meanwhile, the broader Aerospace & Defense sector continues to outperform, with the group up +20.82% YTD, reflecting investor confidence that Europe’s defence transformation is not a short-term trend, but a multi-year strategic shift.

Find here our curated list of Aerospace & Defense ETFs.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.