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Before the outbreak of the conflict in Iran, in two months until the end of February, the assets of ETFs invested in defense increased from 13,534 billion to 17,285 billion, of which 1,980 billion thanks to collection.
Indeed, massive reinvestment plans in several countries of Europe make it seem that orders will be long-term: “More and more, investors consider defense as a core investment, not just tactical,” says Pierre Debru, head of research for Europe at WisdomTree.
Excluding controversial weapons
Launched in March 2025, the ETF WisdomTree Europe Defence UCITS currently has assets of 4,631 billion (as of February 27, 2026), dominating the European defense sector and ranking second globally behind the VanEck Defense ETF, which invests worldwide. WisdomTree’s ETF excludes controversial weapons from its investment universe. “Institutional investors want to participate in the rearmament process initiated by governments, as it is a fundamental movement, but this commitment must align with their internal ESG policy,” justifies Pierre Debru. The ETF is focused on a small number of companies: 10 stocks represent 86% of the assets. WisdomTree’s proprietary index emphasizes the weight of pure players – those representing two-thirds of the portfolio. Their market capitalization is adjusted by multiplying the capitalization by a company’s purity score: 1 for companies with dual civilian and military purpose that generate between 10 …
