Select STOXX Europe Aerospace & Defense ETF

EUAD

Market cap $1.12B

A number of major defense companies, including Rheinmetall and Lockheed Martin have announced billions of dollars worth of backlogs

According to the Stockholm International Peace Research Institute, military spending around the world is rising rapidly, having reached $2.9 trillion in 2025. Europe has led the way in this growth, with a 14% year-over-year (YOY) increase in military spending from 2024 to 2025.

If you're interested in broad exposure to the Industrials - Aerospace & Defense segment of the equity market, look no further than the Select STOXX Europe Aerospace & Defense ETF (EUAD), a passively managed exchange traded fund launched on October 22, 2024.

The Select STOXX Europe Aerospace & Defense ETF (NYSEARCA:EUAD) has snapped back hard after a sluggish start to the year.

Europe's defense offerings are dwarfed in scale by SpaceX, Anthropic, or OpenAI. They may prove no less important in fate-of-the-world terms, though.

Select STOXX Europe Aerospace & Defense ETF (EUAD) offers concentrated exposure to European defense firms benefiting from rising geopolitical tensions and increased EU/NATO defense budgets. EUAD's top holdings possess strong economic moats, diversified military-commercial revenue streams, and new growth drivers like counter-drones and satellite communications. Relative and absolute valuation suggest EUAD is 16–18% undervalued, with a Fair Value estimate around $48 versus the current ~$41 price.

European governments are pushing defense budgets higher than at any point since the Cold War, and three exchange-traded funds offer distinct ways to ride the spending cycle: the iShares U.S.

Select STOXX Europe Aerospace & Defense ETF (NASDAQ:EUAD) was the cleanest way to own European defense stocks from a U.S.

European equities have rallied in a way that few investors expected a year ago. Germany's decision to loosen its debt brake, the launch of the EU's ReArm Europe program, and a wave of higher defense budgets across NATO have all shifted expectations about the continent's fiscal direction.

Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the Select STOXX Europe Aerospace & Defense ETF (EUAD) is a passively managed exchange traded fund launched on October 22, 2024.