As Global Defense Spending Surges, This ETF Could Shine

Core Viewpoint - Geopolitical events are influencing defense spending, making aerospace and defense stocks attractive for investors in 2026 [1][5]. Group 1: Defense Spending Trends - Increased defense spending is expected from countries outside the U.S., China, and Russia, which are the top three defense spenders globally [2]. - The theme of rising defense expenditures is anticipated to continue, suggesting that investors should consider ETFs like the WisdomTree Global Defense Fund (WDGF) [2][4]. Group 2: WisdomTree Global Defense Fund (WDGF) - WDGF, launched in September, allocates 54.51% of its weight to domestic defense stocks while also including stocks from 15 other countries, indicating a connection to global defense spending growth [3][4]. - The ETF holds 88 stocks with weights ranging from 0.03% to 5.20%, and has an annual expense ratio of 0.45% [7]. Group 3: Long-term Outlook - The sentiment around defense spending suggests it will be a durable theme, as it is not a budget item that politicians are looking to cut [6]. - Security spending is becoming a protected area within government budgets, with leaders recognizing that military readiness is essential for economic stability [7].