3 ETFs for Gaining Exposure to Diversified Defence Stocks
The rise in defence spending is a global megatrend and these ASX listed defence ETFs offer diversified exposure to leading defence manufacturers and advanced military technology.
VanEck Global Defence ETF (ASX: DFND)
VanEck Global Defence ETF (ASX: DFND) has become one of the top performers in the Australian market because it benefits from higher global defence budgets geopolitical tensions and military modernisation.
DFND over the past 12 months has risen by around 59% and the ETF tracks the MarketVector Global Defence Industry Index.
Aerospace and defence companies account for about 72.6% of the portfolio while the ETF has an expense ratio of 0.65% per annum and it held 36 companies as of January 2026.
The United States makes up almost 50% of the portfolio while European countries also hold meaningful weights because NATO members are raising defence spending.
The ETF’s largest holdings include major defence companies that operate in missile systems which shows the strategic focus of the portfolio.
Betashares Global Defence ETF (ASX: ARMR)
Betashares Global Defence ETF (ASX: ARMR) has become a key way to gain exposure to the global defence theme because rising military and security spending across NATO aligned countries supports this sector.
The ETF over the past 12 months has risen by more than 51.72% which reflects strong performance from defence manufacturers infrastructure suppliers and security technology providers.
ARMR has current annual yield of around 2.07% which provides a modest income stream and the ETF has an expense ratio of 0.55% per annum.
The ETF held 52 companies as of January 2026 and a key difference of ARMR is its broad exposure across the defence ecosystem which combines traditional defence manufacturing leaders with newer segments.
Global X Defence Tech ETF (ASX: DTEC)
Global X Defence Tech ETF (ASX: DTEC) gives investors focused exposure to companies that are likely to benefit from higher global defence spending and stronger national security priorities
The fund targets technology-based defence such as AI drones and cybersecurity which it selects through a revenue filter that ensures meaningful exposure to innovation within the sector
The ETF as of 30 January 2026 holds 37 companies and has an expense ratio of 0.5% per annum.
The portfolio is allocated 86.7% to Aerospace and Defense and large cap stocks account for 91% of total holdings.
(Source: Company Reports)
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