Investing in European Defence ETFs and Stocks – How You Can Ride the Boom

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Update June 27th, 2025

NATO States Agree on New Spending Target of Five Percent

NATO alliance members have reached an agreement on a new benchmark for minimum national defence spending. According to the German Press Agency (dpa), following a written decision-making process, member states plan to commit to allocating at least five percent of GDP annually to defence-related expenses. The agreement has also been confirmed by Reuters and AFP.

Of this amount, a minimum of 3.5 percent is to be dedicated to traditional military expenditures. Additional categories, such as counter-terrorism and dual-use infrastructure, will also count toward the total. Eligible investments include upgrades to railways, tank-capable bridges, and expanded ports.

Spending Target Set for 2035

NATO members are expected to meet the full target by 2035, according to diplomats familiar with the draft summit communiqué.

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Europe is rearming like never before. In response to the war in Ukraine and growing geopolitical tensions, countries across the continent are ramping up defence budgets — and defence companies are cashing in.

Many European governments are committing to defence budgets we haven’t seen in decades — some planning to spend up to 5% of GDP by 2030. EU-wide initiatives could mobilise €800 billion by 2030 to reduce reliance on U.S. suppliers and boost domestic defence capacity.

This isn’t just a short-term reaction. It’s a structural shift that’s reshaping the continent’s industrial, political, and financial landscape. A new generation of defence-focused manufacturers, suppliers, and tech providers are seeing surging demand, multi-year contracts, and generous political backing.

At the same time, a new wave of defence-themed ETFs is making it easier than ever for private investors to gain exposure to this growing sector — from long-established defence champions to next-generation aerospace, cybersecurity, and drone innovators.

But here's what many investors are missing:While most analysts have already priced in the growth through 2027, the real upside may come after that — driven by long-term rearmament cycles, EU-wide policy shifts, and constrained production capacity that gives select companies pricing power for years to come.

The White Paper Covers:

• Which European countries are planning the largest defence investments by 2030

• What’s driving this growth, and why it’s not just temporary

• The key risks and structural tailwinds investors need to understand

• Detailed profiles of the top defence companies and thematic ETFs in Europe

• Forecasts for revenue, profit growth, and what analysts aren’t pricing in yet

  
  

If you want the full investment picture — and to uncover which companies and funds are best positioned to benefit from Europe’s defence boom — download the full white paper now.

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🔒 ETF and Stock names, numbers, and opportunities revealed inside.

Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. It does not consider your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances and seek professional advice before making any investment decisions. Investing in stocks carries inherent risks, and the application of any strategy may not eliminate the risk of loss. Market conditions, volatility, and unforeseen events can impact outcomes, and past performance is not indicative of future results.