WisdomTree continues its series of launching exchange-traded funds (ETFs). After the recent listing of a thematic vehicle, the American provider is launching two strategies in the defense sector: the WisdomTree Asia Defense UCITS ETF (WDAF) and the WisdomTree Global Defense UCITS ETF (WDGF).
Both products are listed in euros on Börse Xetra, Borsa Italiana, Euronext Paris, and SIX Swiss Exchange since March 31st. The next day, on April 1st, they will be listed in pounds sterling and dollars on the London Stock Exchange. The total fees for WDAF are 0.50% while those for WDGF are 0.40%.
While both vehicles will target defense sector companies, the WisdomTree Asia Defense UCITS ETF will focus on those located in the Asia-Pacific region, excluding China. The objective is to capture the rise of a defense investment cycle in Asia.
On the other hand, WDGF will offer exposure to global companies that derive a significant portion of their revenues from defense-related activities. The ETF aims to target companies directly involved in defense manufacturing, systems, and technologies.
The strategy aims to avoid dilution in broader activities such as civil aviation. It also aims to offer diversified exposure to the global defense industry, taking advantage of different armament cycles worldwide.
Context
WisdomTree launched two new ETFs focusing on the defense sector, each with its unique geographic and operational focus.
Fact Check
- WisdomTree Asia Defense UCITS ETF (WDAF) concentrates on Asia-Pacific defense companies excluding China.
- WisdomTree Global Defense UCITS ETF (WDGF) offers exposure to global companies involved in defense-related activities.
A strengthening after initial success
According to the press release, both ETFs will apply “a methodology of exposure and weighting based on revenues, as well as investability criteria”. The indices also incorporate filters excluding companies involved in certain controversial weapons.
These launches follow the thematic products previously introduced by WisdomTree. In March 2025, the provider launched the WisdomTree Europe Defense UCITS ETF (WDEF), which now has assets under management of $5.2 billion. Since the beginning of the year, the ETF has recorded net flows of $1.3 billion, particularly with the rise in geopolitical tensions.
However, the American group believes that defense is not just a passing theme: “Defense has become a structural investment theme rather than a short-term reaction to geopolitical events,” says Pierre Debru, Head of European Research at WisdomTree.
To support this claim, the American provider points to the proliferation of multi-year programs by various governments to strengthen or modernize their military capabilities.
