New defence ETF ignites investor interest amid Australia’s latest $7bn defence deal

InvestorDaily

The deal, part of Australia’s ambitious military modernisation, zeroes in on missile defence, cyber security, and space tech – industries that are booming amid rising global tensions. With the Defence budget on the rise – currently at 2.02 per cent of GDP and targeting 2.4 per cent by 2033–34 – substantial government funds are expected to flow into ASX-listed defence players. Recognising this investment potential, VanEck recently launched its Global Defence ETF (DFND), Australia’s first defence-focused exchange-traded fund, on the ASX.

The ETF gives investors exposure to aerospace, defence, and related tech industries, while excluding companies involved in controversial weapons like anti-personnel mines, biological and chemical weapons, cluster munitions, white phosphorus and more. Speaking to InvestorDaily on Friday, Jamie Hannah, deputy head – investments and capital markets at VanEck, said DFND has already sparked strong interest among investors looking to tap into the under-represented defence sector. “DFND was launched in response to market demand, and it has received highly positive feedback from investors and the broader investment community,” Hannah said.

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