One of this year's most noticeable industry-level themes has been increased defense and national security spending. Importantly, that trend is expanding beyond the usual suspects of the U.S., China, and Russia. Europe is getting in on the act in a big way. That's ushering focus onto ETFs such as the WisdomTree Europe Defense Fund (WDEF). The fund debuted in July and follows the WisdomTree Europe Defense Index. It may be a prime example of age being nothing but a number. That's because investors' reluctance ...

Another interesting element regarding WDEF is that it's not an old guard aerospace and defense ETF. Yes, the ETF holds many stocks hailing from the industrial sector, as expected. However, it also has plenty of defense tech leanings. Take the case of HENSOLDT. "Taken together, HENSOLDT is Europe's sensor spine. A radar stack that spans ground, air and sea. Common designs that simplify sustainment. Passive detection and counter-drone radars that match the drone era. And electronic warfare tools that evolve a ...

Core Insights - European defense spending is on the rise, significantly impacting the performance of related stocks and ETFs [3][7] - The MSCI ACWI ex USA IMI Index has outperformed the S&P 500, indicating a shift in investor interest towards international stocks, particularly in Europe [1][2] Group 1: European Defense ETFs - The Select STOXX Europe Aerospace & Defense ETF (EUAD) and the WisdomTree Europe Defense Fund (WDEF) provide targeted exposure to the European defense sector [4][9] - EUAD has seen substantial success, with assets under management reaching $1.24 billion shortly before its first anniversary, benefiting from increased defense budgets across Europe [6][7] - WDEF, launched in July, holds more than twice as many stocks as EUAD, with a significant allocation to mid- and small-cap stocks, which may offer growth potential [10][12] Group 2: Performance and Strategy - EUAD has surged over 91% year-to-date, appealing to investors seeking familiarity and safety with its large-cap focus [12] - WDEF, while not as established, offers exposure to smaller, potentially high-growth European defense companies, which could be advantageous in the current market [11][12] - The expense ratios for WDEF (0.45%) and EUAD (0.50%) provide a slight cost advantage for WDEF, although lower fees do not guarantee superior returns [13]