The VanEck Defense UCITS ETF (DFNS) is an Ireland-domiciled equity ETF managed by VanEck and traded on the London Stock Exchange.

The fund seeks to track the performance of the MarketVector Global Defense Industry Index, a thematic benchmark composed of global companies involved in the defense industry and activities related to national security.

DFNS provides global exposure to companies across the defense value chain, ranging from military and aerospace equipment manufacturers to technology, communications, and cybersecurity companies serving the industry. It operates under the UCITS framework and follows an accumulating income policy.

The MarketVector Global Defense Industry Index applies thematic and financial criteria to determine eligible companies. New constituents must generate at least 50% of their revenue from military or defense-related activities. 

Composition / Exposure Profile

DFNS can include companies involved in several defense- and security-related activities, such as:

• Aerospace and defense products and services.

• Communications systems and satellites.

• Unmanned vehicles.

• Information technology hardware and services.

• Cybersecurity.

• Training and simulation software and equipment.

• Security, detection, and identification technologies.

The fund has a global investment universe, including companies from the United States, Europe, Asia, and other markets. Its geographic allocation changes according to the composition of the index and the evolution of eligible companies.

As a thematic strategy, the portfolio has significant concentration in the defense industry and related activities. The methodology also applies exclusion criteria covering certain controversial weapons.

Structure and Costs

DFNS has the U.S. dollar as its base currency and trades in U.S. dollars on the London Stock Exchange. The ETF has a total expense ratio (TER) of 0.55% per year, uses full physical replication, and is domiciled in Ireland under the UCITS framework. It is managed by VanEck Asset Management B.V.

DFNS follows an accumulating income policy, meaning dividends received from portfolio companies are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The VanEck Defense UCITS ETF (DFNS) was launched in 2023 to provide exposure to global companies involved in the defense industry and related security activities.

Since its launch, the fund has maintained a passive strategy linked to the MarketVector Global Defense Industry Index, tracking companies across different segments of the global defense value chain.

The strategy operates within an industry influenced by factors such as government defense budgets, national security priorities, geopolitical tensions, and investment in new military and security technologies.

Additional Information

VanEck Defense UCITS ETF (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $4.16 billion.

Over the past 12 months, VanEck Defense UCITS ETF recorded a return of -15.90%, with its price trading between $55.83 and $74.73 during the same period.

The ETF is traded under the ticker DFNS.