New Listing

BlackRock unveils aerospace and defence ETF

The asset manager joins VanEck and HANetf with similar strategies

Lauren Gibbons

Fighter jet defence

BlackRock has expanded its thematic range with an aerospace and defence ETF.

The iShares Global Aerospace & Defence UCITS ETF (DFND) is listed on Euronext Amsterdam and has a total expense ratio (TER) of 0.35%.

DFND tracks the S&P Developed BMI Select Aerospace & Defense 35/20 Capped index which offers exposure to US equities in the aerospace and defence sector.

Stocks must have market capitalisations above $300m and average daily trading volumes greater than $3m to be included in the index.

The launch comes after VanEck and HANetf launched similar products in 2023.

This includes the $150m VanEck Defense UCITS ETF (DFNS), Europe’s first defence-focused wrapper, with a TER of 0.55%.

Four months later, HANetf launched the $60m Future of Defence UCITS ETF (NATO), with a TER of 0.49%.

Demand for defence ETFs has been on the rise following an increasingly unstable geopolitical landscape, as Western countries dramatically increase their defence spending in the face of the war in Ukraine and building tensions between China and Taiwan.

Other news from BlackRock came last month, when it expanded its Shariah-compliant ETF range with the launch of iShares $ Sukuk UCITS ETF (SKUK).

SKUK tracks the JP Morgan EM Aggregate Sukuk index, which offers exposure to US dollar-denominated sukuk bonds, also known as ‘Islamic bonds’, in emerging markets.

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