However, the current geopolitical environment has caused a change of focus between investors, who now see in these companies a solid growth opportunity and long term.
According to the latest data collected by Morningstar, Vaneck Defense ETF has captured 1,871 million euros in net flowsstanding in the number twelve of the ranking of the most marketed products in Europe. This figure makes even more relevance if one takes into account that this fund is barely two years oldand that has managed to anticipate a trend that has taken strength quickly in the markets.
The new scenario promotes investment in defense
The increase in interest in defense -related funds has its origin in a series of significant geopolitical changes. The return of Donald Trump to the presidency of the United States has revived pressure on Europe to increase its investment in security. In response, Germany announced a millionaire investment plan in the sector, followed by other economies of the continent, which has generated a wave of purchases in companies linked to the defense.
Companies such as Rheinmetall, Hensoldt, Leonardo, Thales or SAAB have experienced revaluation of more than 75 % so far this yearespecially highlighting the case of Rheinmetall, which has won 166 % in the stock market. This impulse has been reflected in the Stoxx Europe Aerospace & Defense index, which accumulates a rise greater than 35 % in 2025. In this context, financial products focused on this sector have captured increasing attention by institutional and retail investors.
Vaneck Defense ETF, a young background that anticipated the trend
The Vaneck Defense ETF has been able to consolidate as a star product in a segment that, until recently, was on the market margins. Eduardo Escario, head of Vaneck Business Development in Spain, has told the media that The fund already accumulates 2.5 billion euros so far this yearand that this figure represents approximately half of the total volume under vehicle management.
The key lies in Vaneck’s early vision by launching a theme ETF in defense before the current rise of the sector broke out. Its diversified and global portfolio, together with the specialization of the firm in themes such as artificial intelligence, video games, semiconductors, rare earths or nuclear energy, has been decisive to attract a broader investor profile.
Defense funds gain prominence in Europe
Although Vaneck Defense ETF has been the one that has managed to sneak among the best sellers, it is not the only product related to defense that is gaining notoriety. The Europe Defense UCits ETF, from Wisdomtree, managed to capture 1,000 million euros only one month after its launch. Other products such as the First Indxx Global Aerospace & Defense UCits ETF, the Ishares Global Aerospace & Defense UCits ETF or the Investco Defense Innovation Ucits ETF, They are also present in the market with more modest assets, but with constant growth.
The interest of investors in these thematic products reflects a deep change in the perception of the sector. The debate about your lace in portfolio with ESG criteria remains open, but the truth is that investors are beginning to consider Defense as an essential part of the maintenance of international stabilitywhich reinforces its legitimacy as a strategic investment.
The ranking of the best selling funds in Europe
Ishares Core MSCI World ETF leads the list with 4,011 million euros in net flows, followed by the Ishares Core S&P 500 ETF and the Pimco GIS Incom Fund. However, what stands out is the emergence of the Vaneck Defense ETF in the number twelve, surpassing other more veteran and consolidated funds such as the Allianz Incom and Growth or even some ETF of S&P 500 such as the SPDR.
This behavior of investors indicates that emerging themes, when they are properly positioned and rely on solid macroeconomic and geopolitical realities, can become products of great acceptance. The defense has gone from being a marginalized industry to be part of the hard core of the thematic portfolios of 2025.