WisdomTree Europe Defense Fund

WDEF

Market cap $15.7M

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.

Last year, countries around the world, led by the U.S., spent $2.7 trillion on defense. With European nations committing to increased defense expenditures, it's unlikely that figure will decline soon.

WisdomTree Investments has added yet another fund to its suite, this time a strategy providing exposure to European defense firms. The WisdomTree Europe Defense Fund (WDEF) charges a 45 basis point fee to track the WisdomTree Europe Defense Index.