Global X Defense Tech ETF

SHLD

Market cap $6.27B

SHLD hits a new 52-week high, up 106% from its low, as defense tech gains momentum amid rising global instability.

Trump's $1.5T military budget and rising global tensions could lift defense ETFs and spill over into cybersecurity, AI, manufacturing and space ETFs.

The recent U.S. military operation in Venezuela reignited global attention on geopolitical risks. While this supports an eventual ramp-up of government defense budgets, investors are increasingly viewing aerospace and defense ETFs as a way to hedge potential geopolitical volatility.

Although President Trump is the first 2-term POTUS since Eisenhower to not involve the US in any wars, he is the first one to have successfully ended 8 international wars, with some of them having lasted decades.

Global X Defense Tech ETF surged 74% in 2025, driven by accelerating global defense tech demand and record corporate backlogs. SHLD's portfolio companies report robust earnings, strong order backlogs, and double-digit growth expectations into 2026, supporting continued ETF momentum. Despite a trailing P/E of 32, SHLD's growth prospects and global defense tech focus justify a strong buy rating and potential further upside.

This year, I published a wide range of research notes across the ETF landscape, but reader interest consistently focused around a few big themes: crypto ETFs, global defense ETFs, and commodities ETFs. These areas of the ETF market not only drew meaningful year-to-date inflows.

SHLD benefits from structural geopolitical tensions and rising defense budgets, with Ukraine negotiations and EU decisions reinforcing long term demand for advanced military technology and equipment. Germany's €2.9B defense package highlights Europe's accelerated rearmament, boosting visibility for SHLD holdings such as Rheinmetall and Leonardo and strengthening the ETF's structural momentum. SHLD continues to outperform, rising nearly 71% in twelve months, supported by institutionalized spending, persistent conflict risks and sustained flows into defense technology names.

NATO members' expected $5B weapon purchases by 2025-end should fuel momentum in defense ETFs like SHLD and ITA.

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.

A $93 million US weapon sale to India puts the spotlight on defense stocks like LMT and, by extension, fuels momentum for defense ETFs like SHLD.