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Published on March 20, 2026 at 9:59
Author: Marianne Di Meo
Reading Time: 2 minutes
Before the outbreak of the conflict in Iran, in two months by late February, the ETF assets invested in defense increased from 13,534 billion to 17,285 billion, including 1,980 billion thanks to the collection.
Indeed, massive reinvestment plans in several countries in the Old Continent suggest that orders will be long-lasting: “More and more, investors see 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 WisdomTree Europe Defence UCITS ETF currently has assets of 4,631 billion (as of February 27, 2026), far surpassing the top spot in the European defense sector and second globally behind the VanEck Defense ETF, which invests worldwide. The WisdomTree ETF excludes controversial weapons from its investment universe. “Institutional investors want to be part of the rearmament process initiated by governments because 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 companies represent 86% of the assets. WisdomTree’s proprietary index enhances the weight of pure players – those representing two-thirds of the portfolio. Their market capitalization is adjusted by multiplying the market capitalization by a company’s purity score: 1 for companies with dual civilian and military purposes that generate between 10 …
