VanEck ETF launches new ETF for the defense sector

Asset manager VanEck ETF today lists the VanEck Defense UCITS ETF on the London Stock Exchange and Deutsche Börse Xetra.

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By ETFWorld.co.uk

Martijn Rozemuller, CEO at VanEck Europe

– Against the backdrop of the current global crises, the view of the security and defense sector is also changing in Europe

– The VanEck Defense UCITS ETF is currently the only ETF available in Europe that invests globally in companies in the defense industry.

This new ETF (Exchange Traded Fund) allows investors to invest globally in companies operating in the defense industry.

“The defense sector has traditionally been a sensitive topic in Europe. However, since the start of the war in Ukraine, the views on security and defense policy has started shifting, as the need for security policy has become more obvious,” explains Martijn Rozemuller, CEO at VanEck Europe.

“Due to the Russian invasion of Ukraine, tensions in Asia, and global uncertainty, security and defense are back on investors’ minds after being shunned for several years.”

Many governments of Western European countries that have consistently missed NATO’s two per cent target for defense spending in the past have now announced that they will make significant investments in defense infrastructure and stockpiles and will strive to meet the two per cent target in the future. “Companies in the security and arms industries could benefit from this development in the coming years,” Rozemuller said.

The VanEck Defense UCITS ETF is currently the only ETF available in Europe that offers investors access to this sector. Using a pure-play approach, the fund aims to invest in companies in the future that generate the majority of their revenue from the following defense-related products or services: defense equipment, aerospace technology, communications systems and services, satellite technology, unmanned aerial vehicles, security software, IT hardware and services, cybersecurity software, training and simulation solutions, digital forensics, tracking devices, and e-authentication or biometric identification applications.

To this end, the ETF follows the MarketVector™ Global Defense Industry Index and explicitly excludes companies that generate sales with controversial weapons or have demonstrably failed to comply with established standards. The ETF is classified as Article 6 within the meaning of the EU Sustainable Finance Disclosure Regulation

VanEck Oil Services UCITS ETF

Oil currently represents a large chunk of the global energy consumption and its relevance is projected to remain high also for the decades to come, as the world’s energy demand increases. The events of 2022 have strengthened the case for oil as a mean to ensure energy security and to help gradually carry out the energy transition towards a zero-carbon economy. VanEck Oil Services UCITS ETF enables an investment in the upstream oil sector.

    Invest in 25 US listed companies at the forefront of the upstream oil sector

    Gain exposure to a critical natural resource for energy security and independency

    Traditional inflation protection offered by hard assets

    Companies involved in activities ranging from oil equipment maintenance and production, drilling and technology-based services

Source: ETFWorld