WisdomTree Europe Defense Fund

WDEF

시가총액 US$9304만

Defense stocks and the related ETFs are frustrating investors this year.  Those who wagered that the war in Iran would be a catalyst for domestic defense equities have seen that bet go sour.

In a week when conflict in Iran sent the U.S. equity market into a tailspin, technology stocks tied to cybersecurity and artificial intelligence have proved more resilient than sectors investors have typically treated as safe havens.

One of the most persistent themes this year has been global defense. Historically, it has been an industry that tends to shine when geopolitics drives the macro narrative.

One of this year's most noticeable industry-level themes has been increased defense and national security spending. Importantly, that trend is expanding beyond the usual suspects of the U.S., China, and Russia.

By Christopher Gannatti, CFA, Global Head of Research; and Samuel Rines, Macro Strategist, Model Portfolios Key Takeaways In 2025, Europe accelerated its defense revival with Rheinmetall opening the continent's largest shell factory, a critical step toward meeting NATO's artillery needs amid the ongoing war in Ukraine.

Europe is an epicenter of ramped-up defense spending. Many countries in the region are also NATO members pledging to increase the percentages of GDP allocated to national security in significant fashion in the coming years.

Defense industry giants like Lockheed (LMT) and Raytheon (RTX) retain top spots, but innovative firms and European players are gaining ground. Boeing (BA) has fallen in defense revenue rankings, while newcomers like GE Aerospace (GE), SpaceX, and Palantir show strong growth potential. To capture defense innovation, I recommend ETFs such as SHLD, EUAD, and WDEF, with SHLD as a top pick for technology-driven exposure.

Active investors have likely gotten the memo that international stocks are throttling U.S. counterparts in 2025. As of Oct. 6, the MSCI ACWI ex USA IMI Index, which combines developed and emerging markets equities, is higher by 29.2% year-to-date compared to a gain of "just" 15.6% for the S&P 500.

European defense spending is surging, making targeted ETFs like SHLD, EUAD, and WDEF compelling. SHLD stands out for its tech innovation-focused approach. Between them, EUAD and WDEF offer the best access to Europe's defense sector.

By Christopher Gannatti, CFA, Global Head of Research; and Samuel Rines, Macro Strategist, Model Portfolios Key Takeaways Despite the recent sell-off in key European defense stocks like Rheinmetall and Saab, the underlying driver, Europe's Readiness 2030 defense surge, remains a powerful, long-term structural trend for investors.