Analysis of Domestic Defense and European ETF Interests
This year, defense ETFs have garnered significant attention in the South Korean ETF market with robust returns. Notably, ETFs related to defense from Hanwha Aerospace and Mirae Asset are ranking high. Despite Hanwha Aerospace's large-scale capital increase, the strong performance of defense ETFs highlights the ongoing growth potential and attractiveness of the defense sector. This has the effect of lowering the barriers to entry for defense ETFs and offering investment opportunities.
In contrast, former President Trump's tariff policies have spiked investor interest in European stock ETFs, particularly in Germany and Italy. Germany is buoying its economy with defense industry and infrastructure investments, while Italy is seeing stock gains in the banking and defense sectors. Their ETFs, EWG and EWI, are currently showcasing returns of 22.7% and 21%, respectively. Given that the European manufacturing sector is relatively undervalued, along with policy support and industry recovery potential, a positive outlook prevails.
Related News
Despite 'noise' around Hanwha Aero, the allure of K-defense stocks remains, barriers to defense ETF entry loweredDespite 'noise' around Hanwha Aero, the allure of K-defense stocks remains, barriers to defense ETF entry lowered
“Only Watching the US Could Lead to Trouble”... As the US Stock Market Cools Down, Emerging Safe Havens - Maeil Business NewspaperFocus on Germany and Italy ETFs as Trump's Aggressive Tariff Policy Stimulates the US Economic Downturn; European Stock Markets with Strong Finance and Defense Sectors Gaining Attention