Betashares Global Defence ETF: A Rising Investment Theme

The Betashares Global Defence ETF (ASX: ARMR) rose 55% in FY25 due to increased defence spending worldwide, particularly among NATO member nations. The ETF tracks the VettaFi Global Defence Leaders Index and holds 43 stocks focused on defence, with a country allocation led by the United States (59.5%). The top 10 holdings include Safran SA, Palantir Technologies, and Raytheon Technologies. The ETF pays one distribution per year, with a yearly management fee of 0.55%.

The Betashares Global Defence ETF (ASX: ARMR) has experienced significant growth, rising by 55% in the fiscal year 2025. This performance can be attributed to the global increase in defence spending, particularly among NATO member nations. The ETF tracks the VettaFi Global Defence Leaders Index and holds 43 stocks focused on defence, with a strong concentration in aerospace and defence companies.

The ETF's country allocation is led by the United States, which accounts for 59.5% of its assets. Other significant contributors include France (11.5%), Germany (9.3%), Britain (8.8%), and South Korea (3.1%). The top 10 holdings include Safran SA, Palantir Technologies, and Raytheon Technologies, which are involved in producing aircraft engines, military-grade data analytics, and aerospace technology, respectively.

In terms of income, the ARMR ETF pays one distribution per year. The maiden dividend was 53.546615 cents per unit, with a yearly management fee of 0.55%. The ETF's strong performance is indicative of the growing demand for defence-related products and services, driven by geopolitical instability and increased military readiness.

The rise in defence spending is particularly notable among NATO member nations. At a recent NATO summit, leaders agreed to raise defence spending from 2% of GDP to 5% by 2035. This commitment is expected to further boost the demand for defence products and services, providing a supportive environment for the ARMR ETF and its holdings.

References:
[1] https://www.fool.com.au/2025/07/31/here-is-what-youre-invested-in-with-armr-etf/
[2] https://sherwood.news/world/nato-allies-agree-5-defense-spending-target-which-countries-spend-most-poland/
[3] https://www.voxmarkets.co.uk/articles/bae-systems-lifts-fy-guidance-after-strong-first-half-2b491ce/