WisdomTree launches two defense ETFs with global and Asian exposure
31 MAR, 2026
By Joanna Piwko from RankiaPro Europe
WisdomTree announced today the launch of two new defense-themed UCITS ETFs: the WisdomTree Asia Defence UCITS ETF (WDAF) and the WisdomTree Global Defence UCITS ETF (WDGF). Both funds seek to replicate, before fees and expenses, the performance of their respective proprietary indices (WisdomTree Asia Defence UCITS Index and WisdomTree Global Defence UCITS Index).
The WDAF applies a TER of 0.50% and the WDGF of 0.40%. As of today, they are listed on Börse Xetra, Borsa Italiana, Euronext Paris and SIX Swiss Exchange, and will debut on the London Stock Exchange on April 1, 2026.
With these launches, the manager expands its range of defense ETFs and offers new access routes to a theme that gains structural traction as governments prioritize national security, military preparedness, and industrial capacity.
Characteristics of the ETFs
The WisdomTree Asia Defence UCITS ETF provides exposure to defense values in the Asia-Pacific region excluding China. The strategy seeks to capture the growing defense investment cycle in the region, supported by larger budgets, the strengthening of national supply chains, and the emphasis on strategic autonomy, in a context of rising geopolitical tensions and renewed strategic focus from the U.S.
The WisdomTree Global Defence UCITS ETF offers specific exposure to companies around the world that derive a significant portion of their revenues from defense activities. By focusing on companies directly involved in manufacturing, systems, and defense technologies, the strategy avoids dilution derived from industrial or civilian aerospace revenues present in traditional sector classifications. Its goal is to simultaneously encompass different rearmament cycles, reflecting regional differences in acquisition timelines, capability priorities, and spending levels, and expanding the universe beyond a single country or supply chain to offer diversified exposure to the global industry.
Both ETFs prioritize companies with relevant defense revenues through a scoring and weighting methodology based on revenue exposure, along with investment criteria designed to preserve thematic purity while ensuring diversification and liquidity. Their indices incorporate filters that exclude companies involved in certain controversial weapons, according to the indexed methodology.
Market Context
Defense spending has gone from being a cyclical trade or linked to specific events to becoming a long-term political priority in multiple regions. Governments are strengthening military capabilities, rebuilding arsenals, modernizing equipment, and investing in advanced technologies that encompass cybersecurity, space systems, unmanned platforms, and artificial intelligence. These priorities usually materialize in multi-year acquisition programs, sustained investment in R&D, and long-term order portfolios, generating a more persistent demand environment for defense companies than many traditional industrial cycles.
Defense has become a structural investment theme, rather than a short-term reaction to geopolitical events. Governments are integrating defense spending into long-term security strategies, creating sustained acquisition paths and industrial investment cycles. With these new ETFs, investors can access the theme through both a global strategy that captures multiple rearmament cycles and a specific strategy for Asia focused on a region where defense spending is rapidly accelerating.
Pierre Debru, Head of Research, Europe, WisdomTree
WisdomTree has built a solid reputation in offering differentiated thematic ETFs backed by its own research and index design expertise. Adding Global Defence and Asia Defence strengthens our defense offering and provides investors with new ways to access a theme that is becoming increasingly important in portfolios. As geopolitical tensions persist and governments prioritize security and resilience, defense remains a powerful example of how policy-driven megatrends can shape long-term investment opportunities.
Alexis Marinof, CEO, Europe, WisdomTree
