Wisdom Tree European Defense ETF Alternative to USheavy defense ETFs

Minimizing the US cluster risk is currently a major topic for investors. It is perhaps even THE topic since the second Trump administration has been throwing tariffs and isolationist positions around.

As part of an incipient reallocation in the portfolio $DFEN (+0,69%) and $ASWC (+1,57%) recently, but was bothered by the high proportion of US shares and the heavy weighting of Blackbox $PLTR (+5,89%) among others.

Today I stumbled across the recently launched ETF from WisdomTree, which compiles purely European defense companies: $IE0002Y8CX98 (+0,24%)

Some quick raw data:

Listed for the first time on 3/4/2025

TER: 0.4% p.a.

Physical

Accumulating

WKN: A40Y9K

IE0002Y8CX98

Largest positions:

Rheinmetall (approx. 20%) $RHM (+0,63%) 🇩🇪

Leonardo (approx. 15%) $LDO (+0,54%) 🇮🇹

Saab (approx. 10%) $SAAB B (-2,39%) 🇸🇪

BAE (approx. 10%) $BAE (+0%) 🇬🇧

Thales (approx. 9%) $THALES (+0,13%) 🇫🇷

This investor will reallocate a little. He is not giving investment advice, but rather enjoying the diversity of Europe. 🇪🇺

Sources:

https://www.wisdomtree.eu/en-gb/etfs/thematic/wdef---wisdomtree-europe-defence-ucits-etf---eur-acc

https://www.wisdomtree.eu/en-gb/strategies/european-defence

https://www.justetf.com/de/etf-profile.html?isin=IE0002Y8CX98#chart

https://www.computerbild.de/artikel/cb-News-Finanzen-Erster-ETF-fuer-europaeische-Verteidigung-39553857.html

Stonedeath@Stonedeath

5Mes

However, it should be borne in mind that some of the stocks included, especially the German stocks, have now undergone a hyperbolic development in which a great deal is already priced in and disappointments are inevitable due to the expected incompetent decisions of our sham political elite. If you want to be a little safer, allocate both ETFs 50:50.

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GHF@GHF

I understand your motives, they reflect the spirit of the times. But I'm skeptical as to whether it's really smart to rotate countries now after the US stock markets have plummeted and the European ones have risen quite well, especially the European arms market.
For me, the US markets currently offer good buying opportunities, even if the bottom has perhaps not yet been reached.

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Wisdom Tree European Defense ETF 🇪🇺- Alternative to US-heavy defense ETFs