WisdomTree Europe Defence ETF Smashes $3bn Barrier – Institutional Demand Explodes

Defense stocks aren’t just surviving—they’re thriving. WisdomTree’s Europe Defence ETF just bulldozed past $3bn in AUM as geopolitical tensions fuel a sector-wide gold rush.

Wall Street’s war machine

Pension funds and hedge funds are piling into defense plays like it’s 1942. The ETF’s 30% YTD surge makes tech stocks look sluggish—who needs AI when you’ve got NATO expansion and defense budget blowouts?

The cynical take

Nothing unites capitalists like profitable paranoia. Defense ETFs now outperform ‘ESG darling’ funds by 2:1—apparently saving the planet pays less than preparing to destroy it.

The WisdomTree Europe Defence UCITS ETF (WDEF), launched on 11 March 2025, has surpassed $3 billion AUM three months after it began trading. This achievement reinforces the strong investor conviction in Europe’s long-term defence transformation and the ETF’s unique investment proposition.

 “Crossing the $3 billion landmark further validates investors’ conviction in Europe’s long-term defence transformation. WDEF was the world’s first European Defence ETF, and it has become the go-to solution for those seeking targeted and responsible exposure to the region’s defence sector as European governments increase investment in strategic capabilities, further empowered by new NATO spending guidelines.”

NATO’s 2% of GDP defence spending guidance has evolved from a symbolic benchmark into a clearly defined policy objective. Now underpinned by multi-year government commitments to scale spending toward 5%, with 3.5% earmarked for Core defence capabilities and 1.5% for adjacent sectors such as cybersecurity and infrastructure. This marks not only a decisive shift in political will but also reinforces the idea that European defence investing is a long-term growth theme for capital markets.

: “The NATO summit has made it clearer than ever: European countries are stepping up their defence commitments, with increased spending now a top priority. For investors, this marks the next phase of a long-term shift. As governments channel more funds into the defence space, we see strong potential for sustained growth across the sector. Companies that support modern military capabilities and critical infrastructure are well-positioned to benefit, making European defence an increasingly important area for capital allocation”.

The WisdomTree Europe Defence UCITS ETF was designed to offer precise exposure to the European companies driving this shift. The AUM momentum reflects a strong alignment between policy, investor interest, and market opportunity. The ETF provides targeted and thoughtful access to the companies best positioned to benefit from structural shifts in European defence spending and strategic autonomy.

AUM data is sourced from WisdomTree as of 27 June 2025.

Source: WisdomTree