Trillions European Defense ETFs are the Break Out Theme of 2025
Jun 18, 2025
Henry Jim, Senior ETF analyst at Bloomberg Intelligence, dives into the explosive interest in European defense ETFs amidst potential US isolationism. He discusses the surge in ETF launches, highlighting WisdomTree's WDEF and its impressive asset gathering. The conversation covers the first-mover advantage, performance drivers like military spending, and why European stocks are attracting investors. Jim also points out top performers like Rheinmetall, showcasing the remarkable shift in this market.
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European Defense ETFs Exploded In 2025
- European defense ETFs exploded in 2025 as investors front-ran expected military spending shifts.
- WisdomTree's WDEF gathered ~2.5 billion euros almost immediately, showing theme power.
First-Mover Dominance In Thematic ETFs
- First-to-market matters enormously in thematic ETF races and can lock up dominant share.
- Henry notes WDEF controls roughly 93% of the European defense ETF category early on.
Launch Before The Moment, Not After
- File early and put your line in the water before demand appears; timing can create lasting market share.
- Issuers that launch first often retain assets even when competitors undercut on cost or performance.