Amundi Launches European Defence ETF Amid Rising Regional Military Spending
22 MAY, 2025
By Jose Luis Palmer from RankiaPro Europe
Amundi has officially launched its STOXX Europe Defense UCITS ETF, targeting the growing demand for investment exposure to Europe’s bolstered defence industry. The ETF tracks the STOXX Europe Total Market Defense Capped index, which comprises companies with significant revenue derived from defence activities.
Initially listed on Euronext Paris, Amundi has confirmed the product will also be available on Xetra and Borsa Italianain the near future. However, a potential London listing remains unconfirmed, with the firm contacted for clarification. This marks Amundi’s entrance into a niche that has gained momentum in recent months, following similar ETF launches from WisdomTree in April and HanETF shortly thereafter.
Investor interest rises as Europe ramps up military budgets
The flurry of defence-focused ETFs comes amid Europe’s accelerated defence spending, prompted by geopolitical instability and diplomatic shifts. Tensions escalated further as the US entered direct negotiations with Russia to end the war in Ukraine, excluding European partners from the talks.
In a significant move, the UK and EU signed a trade agreement on 19 May, which includes the creation of the £150bn Security Action for Europe (SAFE) fund, reinforcing the continent’s commitment to defence and strategic autonomy.
Commenting on the launch, Fannie Wurtz, head of distribution and wealth, ETF and passive business at Amundi, described the ETF as a “timely opportunity” for investors to align with Europe’s strategic goals. “At Amundi, we are committed to offering investors efficient solutions that meet their goals and expectations,” she said, highlighting both the sector’s long-term growth potential and its role in supporting Europe’s evolving geopolitical priorities.
