Lead-Lag Live How Geopolitics and National Security Are Changing Tech Investing
Jan 13, 2026
Aram Babikian, Head of Xtrackers Wealth at DWS and an expert in ETF and technology investing, dives into the intersection of geopolitics and tech. He explains the importance of 'critical technologies' and how the US–China rivalry is reshaping capital flows. Aram reveals how geostrategic risk ratings guide investment choices, leading to the exclusion of major players like Apple and Tesla due to their ties to China. He emphasizes the potential of tech investments aligned with national security, highlighting companies like Palantir and Rolls-Royce as strategic opportunities.
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Government Lists Critical Tech Priorities
- The U.S. Department of Defense identified 14 "critical technologies" that were consolidated into six priority areas guiding future defense and economic investment.
- These priority areas—like trusted AI, quantum, and biomanufacturing—are receiving large-scale government funding tied to national security.
Two-Stage Screening Drives CRTC Composition
- CRTC first filters ~1,500 companies down to ~220 by alignment with critical technologies.
- It then applies a geostrategic risk rating to remove firms with high entanglement to adversarial nations like China or Russia.
De-Risk By Screening Geopolitical Entanglement
- De-risk portfolios by avoiding companies with heavy revenue, supply-chain, or ownership ties to adversarial nations.
- Use geostrategic risk metrics (revenue exposure, board composition, supply chains) to screen holdings.