Global X launches Defence Technology ETF amid surge in global defence spending
Global X has launched the Global X Defence Technology ETF (ASX: DTEC), providing Australian investors with access to global companies at the forefront of defence innovation. As global security concerns shift focus onto technology-driven solutions, DTEC offers targeted exposure to key sectors driving the future of defence, including artificial intelligence (AI), drones and cybersecurity.
DTEC aims to track the performance of defence technology sectors by focusing on innovations in security, defence systems and hardware that enhance national safety. The fund maintains a competitive management fee of 0.50% per annum.
The fund has been available in the US under the ticker code SHLD and has gathered more than US$500 million in net assets since listing less than one year ago.
Global X Investment Strategist, Billy Leung said DTEC’s launch comes at a critical juncture, as geopolitical uncertainty has heightened national security concerns and sparked global defence spending.
“As the global landscape evolves, modern defence planning has shifted towards safeguarding nations through a combination of technology-driven innovations and essential defence infrastructure to enhance protection, intelligence and security. DTEC offers investors access to the sectors leading this transformation, with global defence spending rising at an annualised rate of 4.3% over the past 40 years.
“We expect this trend to continue amid further geopolitical uncertainty, which is a testament to the sector’s resilience even during economic downturns.
“DTEC offers growth due to its differentiated exposure across various sectors, including industrials, cybersecurity, AI and augmented reality. What is key here is that unlike many civilian markets defence revenues are closely tied to military needs. This gives the defence sector a level of resilience and less correlation with general economic cycles, positioning DTEC as an attractive option for investors seeking capital growth,” Leung said.
DTEC expands Global X’s ETF lineup in Australia to 41 across core, thematics, commodities, income and cryptocurrency. Global X now holds more than $8 billion in assets under management in Australia and over US$85 billion globally.
