Hello everyone,
I have been looking more closely at allocating to thematic sector ETFs for some time now - particularly with regard to long-term geopolitical trends, government spending cycles and strategic diversification.
The VanEck Defense UCITS ETF ($DFEN (-0,12%)
) is now available with over 5 bn € AUM one of the largest and fastest growing defense ETFs in Europe.

I personally find the construct - physical replication, ESG screening (no exposure to controversial weapons), broad geographical diversification (USA, EU, Israel, South Korea) - quite interesting. TER of 0.55% is reasonable.
💡 My view - Pro:
- Defense spending is rising structurally in many industrialized countries → long-term tailwind
- Hardly any correlation with traditional consumer or tech sectors → Diversification
- Many holdings benefit not only from military business, but also from aerospace, cybersecurity and dual-use technologies
⚖️ But there are also cons:
- Political risks (export bans, ESG pressure from institutional investors)
- Lack of transparency of some sources of income (civil/military not always clearly separable)
- Possible overvaluation after the strong run since 2023?
📊 Question for you:
➡️ How do you rate the defense sector in general - as a strategic component of a diversified long-term portfolio?
➡️ Do you think $DFEN is a sensible vehicle - or too niche / cyclical?
I'm looking forward to hearing your views - especially from those who deal with sector ETFs, geopolitical trends or ethical issues themselves.
Thank you 🙌