Themes Transatlantic Defense ETF

NATO

Market cap $100M

NATO's top military commander ​on Thursday highlighted ‌the importance of battlefield data processing ​in modern warfare, ​pointing to conflicts in ⁠Ukraine and ​the Middle East.

NATO's defense ministers committed to spending at least 2.5% of GDP on defense, with Poland, the Baltics, and Greece already running above 4%, and the alliance has set a target of 5% of GDP on defense spending by 2035.

Themes Transatlantic Defense ETF is rated Hold due to elevated valuations and decelerating growth among top holdings despite recent outperformance. NATO's cap-weighted structure concentrates exposure in U.S. defense giants like RTX, GE, and Boeing, all facing valuation and growth headwinds. High government debt in NATO countries is likely to constrain further defense spending growth, limiting upside even amid geopolitical instability.

The Themes Transatlantic Defense ETF is riding a surge in defense spending that hasn't been seen for years, maybe decades.