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Property manager VanEck expects development in defence sector as Trump returns

Need for a leading defence sector exchangetraded fund (ETF) has been growing ahead of the return of Donald Trump to the White House, stated investment company and ETF company VanEck.

The European arm of the New York-headquartered business introduced its VanEck Defense UCITS ETF in March 2023. It increased around 55% in 2024 and is already up around 8% at the start of 2025, with properties under management of around $1.8 billion.

We are observing strong momentum in the defense sector. Given that the launch of our fund, we have actually experienced consistent inflows with the ongoing global geopolitical tensions being the main interest motorist, stated VanEck EU CEO Martijn Rozemuller.

Earlier this month, Trump said NATO members must spend 5%. of their gross domestic product on defence, a significant. increase from the current 2% target.

Authorities and analysts have actually likewise told Reuters they expect. NATO to accept go beyond this present defence costs target.

As the political climate evolves, so too does financier. belief towards defense stocks. Simply a few years earlier, the. sector was taboo for a lot of institutional investors. Today, with. supporting federal government policies, the contrast could not be. larger, added Rozemuller.

The ETF's top holdings include Palantir Technologies. , Thales, Booz Allen Hamilton and. Leonardo.

(source: Reuters)