HANetf has announced the listing of the ETF Future of Defence (Ticker: NATO) on Borsa Italiana, providing investors with an opportunity to invest in the defense sector, a popular investment theme amid the ongoing conflict in Ukraine. The ETF, which follows the EQM Future of Defence index listed on the London Stock Exchange and Deutsche Börse, will invest in global companies that generate revenues from cybersecurity and defense spending by NATO allies and NATO Plus.
With the war in Ukraine and growing tensions in the Asia-Pacific region, global military spending has reached a record high of $2.2 billion in 2022. NATO’s European members have increased their military spending to meet NATO’s 2% of GDP target, following the Russian invasion of Ukraine and the need for enhanced defense capabilities. The ETF aims to capture the growth in conventional military expenditure and the rising importance of cybersecurity defense, as governments recognize the significance of safeguarding cyberspace.
The UCITS Future of Defense (NATO) ETF brings together these two aspects of modern defense, with a focus on companies involved in the production and development of military aircraft, defense equipment, and cybersecurity operations with NATO Plus member countries. The ETF aims to provide investors with exposure to companies well-positioned to benefit from increased spending by NATO allies and NATO Plus in military hardware and cyber defense.
Hector McNeil, founder and co-CEO of HANetf, emphasized that the world is becoming an increasingly warlike place, and governments are recognizing the need for heightened defense capabilities. He highlighted the significance of cyberspace as a new arena of warfare and the relentless cyberattacks witnessed during the Russian invasions of Ukraine. The UCITS Future of Defense (NATO) ETF aims to fill the gap in the market by offering investors access to companies focused on NATO and its allies, which are defensive alliances rather than aggressors.