1Mon·

Defence ETF 2025 switch

dOk · 2025-01-07T17:20:58.494202Z

I just closed my entire $DFEN position after a very good ride last year, switching it with the new $IVDF because the VanEck ETF is currently too exposed to $PLTR and with this structure it does not help me in my portfolio diversification (that is mainly tech, but I also believe that Palantir may not offer good earnings in 2025), while the new Invesco $IVDF has a very cool and balanced composition ($RKLB $KTOS $AVAV $LDOS to name few) and also a much lower TER. From my point of view this is the best ETF for anyone looking to invest in the Defence sector at the moment (and I also had been invested on $ASWC last year, then I decided to go completely on $DFEN until today). NOT FINANCIAL ADVICE!!! 👀

I just closed my entire $DFEN (-2.07%) position after a very good ride last year, switching it with the new $IVDF (-1.99%) because the VanEck ETF is currently too exposed to $PLTR (-3.33%) and with this structure it does not help me in my portfolio diversification (that is mainly tech, but I also believe that Palantir may not offer good earnings in 2025), while the new Invesco $IVDF (-1.99%) has a very cool and balanced composition ($RKLB (-6.21%)
$KTOS (-1.66%)
$AVAV (-1.71%)
$LDOS (-2.56%) to name few) and also a much lower TER.

From my point of view this is the best ETF for anyone looking to invest in the Defence sector at the moment (and I also had been invested on $ASWC (-2.25%) last year, then I decided to go completely on $DFEN (-2.07%) until today).

NOT FINANCIAL ADVICE!!! 👀

07.01

Invesco Defence Innovation ETF

Bought at €5.28

10 Comments

Thomas@waldbrandgefahr

1Mon

Good Point! I am considering $IVDF

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dOk@doks

1Mon

@waldbrandgefahr I am mainly bullish on $KTOS and $RKLB but I prefer to have exposition through this ETF to get more diversification. Today $DFEN is gaining because of $LDO but I think those US stocks will overperform the $DFEN ones

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But T.@But_the_Stock_Picked_Me

1Mon

Interesting and good companies. Got it on my watchlist, but I'm not sure. Seems like too much of a mixed bag, on the other hand reduces single stock risk.

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dOk@doks

1Mon

@But_the_Stock_Picked_Me ETFs are the best choice for long term investing

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Peter@investingbeginner

1Mon

Interesting just worried a bit since fund is only 6m and it's still a very new ETF

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dOk@doks

1Mon

@investingbeginner certainly the size of the fund is small, but it is just over 2 months old and the issuer is Invesco, the fourth largest ETF provider in the world, so I wouldn't worry about that

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Peter@investingbeginner

1Mon

@doks just checked it in Trade republic, for some reason the holding companies are different. They have "Red Cat" , "Boeing" and other companies as holdings, even double checked the ticket $IVDF and WKN: A40J95

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dOk@doks

1Mon

@investingbeginner you are right!

They just updated composition: https://www.invesco.com/uk/en/financial-products/etfs/invesco-defence-innovation-ucits-etf-acc.html

Now:
$RCAT 3.42%
$ESLT 3.11%
$277810 3.05%
$KTOS 3.02%
$BRKR 2.82%
$AVAV 2.81%
$HXL 2.78%
$BA 2.75%
$RKLB 2.74%
$HO 2.70%

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Matt@Naidala

I agree $IVDF is better than $DFEN 's excessive exposition to $PLTR. But among the ETFs on innovative defence, why did you prefer $IVDF over $ASWC? Any thoughts about their compositions? The holdings of $IVDF seems to me more volatile, and to have had a sudden surge in the last months, rather than a steadier increase as those of $ASWC.

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dOk@doks

@Naidala also $ASWC has a nice $PLTR exposition and I wanted to avoid it to not overlap my main US tech portfolio

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