Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

VanEck Australia

  •   9 September 2024
  •      
  •   

Australia’s first global defence ETF to help investors navigate rising geopolitical risk

Sydney, 9 September 2024 – In an Australian first, VanEck will be listing a global defence ETF on 12 September 2024 on ASX. The VanEck Global Defence ETF (ASX:DFND) offers exposure to a portfolio of leading defence companies across diverse sectors such as aerospace, communications, security software and training.

With rising geo-political risks being a key consideration for portfolio construction, investors around the world have been assessing how the changing global security environment impacts government expenditure and, ultimately, the deployment of capital. 

In 2023, a report by the Stockholm International Peace Research Institute (SIPRI) showed global military expenditure had grown 7% to US$2.43 trillion. This is the steepest annual rise since 2009, reflecting an increased focus on national security as international peacekeeping has deteriorated. The industry is expected to grow nearly 40% to US$3.1 trillion by 2030.

Arian Neiron, VanEck CEO and Managing Director, Asia Pacific said: “Unfortunately, the world has changed since the days of celebrating the peace dividend. Where countries used to extol the economic benefits of reduced defence spending, they’re ramping up military expenditure. Investors are adapting to the likely reality that this will keep rising in the years ahead.

“DFND extends on VanEck’s global footprint. In Europe, we were the first to launch a global defence fund, attracting substantial flows since launch in 2023. Given strong demand locally and the consistent and identifiable trends supportive of the sector’s growth, we decided to bring this investment strategy to the ASX.

“Global defence companies benefit from a unique investment complex. Demand is driven by structural growth drivers and cashflows are typically secured by long-term government mandates. This can be a strategic allocation for investors, providing a different form of equity risk management.

“The defence industry has historically been at the forefront of technological development and advancement. This sector generally places a greater emphasis on research and development, leading to numerous innovations that have filtered through to mainstream applications such as GPS navigation, epinephrine autoinjectors (better known as EpiPens), the internet, and super glue,” Neiron said.

The launch of DFND brings VanEck’s total number of ETFs on ASX to 43 and extends on the business’ commitment to innovation and helping investors access the opportunities.

 

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

With markets near record highs, here's what you should do with your portfolio

Markets have weathered geopolitical turmoil, hitting near record highs. Investors face tough decisions on valuations, asset concentration, and strategic portfolio rebalancing for risk control and future returns.

Latest Updates

Investment strategies

Finding income in an income-starved world

With term deposit rates falling, bonds holding up but with risks attached, and stocks yielding comparatively paltry sums, finding decent income is becoming harder. Here’s a guide to the best places to hunt for yield.

Economy

Fearful politicians put finances at risk

A tearful Treasury chief, a backbench rebellion, and crashing bonds. What just happened in the UK and why could Australia’s NDIS be headed for the same brutal fiscal reality?

Shares

Investing at market peaks: The surprising truth

Many investors are hesitant to buy into a market that feels like it’s already climbed too far, too fast. But what does nearly a century of market history suggest about investing at peaks?

Shares

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Investment strategies

Will stablecoins change the way we pay for things?

Stablecoins have been hyped as a gamechanger for the payments industry. But while they could find success in certain niches, a broader upheaval of Visa and Mastercard's payments dominance looks unlikely.

Infrastructure

An investing theme you can bet on for the next 30 years

Investors view infrastructure as a defensive asset class rather than one with compelling growth prospects. These five tailwinds for demand over the coming decades suggest that such a stance could be mistaken.

Investment strategies

A letter to my younger self: investing through today's chaos

We are trading through one of history's most confounding market environments. One day, financial headlines warn of doomsday scenarios. The next, they celebrate a new golden age. How can investors keep a clear head?

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.