Rapid Growth and Trends in the Defense ETF Market

Global defense stocks have emerged as promising investment themes following former President Donald Trump's re-election, leading to a surge in defense ETF launches. The 'PLUS Global Defense' ETF, soon to be listed on the Korea Exchange, plans to invest in major U.S. and European defense companies. This ETF will adjust its investment weight through rebalancing every six months, and investors are expected to benefit from the growing interest in European defense stocks.
Trump's 'America First' policy has spotlighted the defense sector as a key growth driver. Related ETFs offer diversified portfolios by reducing exposure to U.S. and European companies. The 'PLUS Global Defense' ETF by Hanwha Asset Management minimizes country risk by including up to five companies from any single country.
In South Korea, defense-related ETFs are also showing strong performance. For instance, Hanwha Asset Management's 'PLUS K-Defense' and 'TIGER U.S. Defense TOP 10' are gaining attention with significant yield increases, appealing to investors. According to Koscom's ETF Check, five domestic defense ETFs have recently made it into the top 20 in terms of yield performance.
The growth of the defense industry is anticipated following the Russia-Ukraine war, positioning defense ETFs as effective investment vehicles. Particularly in the global market, these funds offer opportunities for investors to explore new avenues for growth based on the burgeoning success of defense sector companies.
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Which ETF Predicted Trump's Victory? Hanwha's 'K-Defense' VS Mirae Asset's 'US Defense' - Newspim[Seoul=Newspim] Reporter Lee Yun-ae = With former President Donald Trump winning the 47th U.S. presidential election, defense-related exchange-traded funds (ETFs), a representative 'Trump Trade (beneficiary stock)', also took off. In this context, Hanwha Asset Management's 'PLUS K-Defense', which invests in key domestic defense industry companies