Defence ETFs give investors a way to invest in companies involved in defence, security, aerospace, military technology and cybersecurity through a single fund.
This guide looks at five of the top defence ETFs on InvestEngine in 2026, based on the most held defence ETFs on the platform. It explains what defence ETFs are, how they work, what each ETF gives investors exposure to and the main risks to consider.
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. This article is for general information only and is not personal advice.
Top defence ETFs for UK investors: quick answer
Here are five of the top defence ETFs on InvestEngine.*
| Defence ETF | Ticker | Suitable for investors looking for |
|---|---|---|
| Future of Defence ETF | NATP | Global defence and security exposure linked to NATO and allied nations |
| VanEck Defense ETF | DFNG | Broad global defence industry exposure |
| WisdomTree Europe Defence ETF | WDEP | Focused exposure to European defence companies |
| Global X Defence Tech ETF | ARMG | Defence technology, cybersecurity and advanced military hardware exposure |
| Invesco Defence Innovation ETF | DFNX | Defence, security and innovation exposure |
- This list of “Top ETFs” is based on the most held defence ETFs on InvestEngine’s platform. Top ETFs have been calculated by most bought, by number of clients, between August 2025 and August 2026.
What are defence ETFs?
Defence ETFs are investment funds that hold shares in companies involved in defence, security and related technologies.
These funds may include companies working in:
- Aerospace and defence equipment
- Military systems and hardware
- Cybersecurity
- Defence logistics
- Surveillance, data and communications
- Robotics, drones and advanced defence technology
- Digital security and critical infrastructure protection
Instead of buying individual defence stocks, investors can buy one ETF and gain exposure to a basket of companies across the defence and security sector.
Why defence ETFs are gaining attention in 2026
Defence ETFs have gained attention as governments increase spending on security, military equipment and cybersecurity.
Global security has become a major investment theme, with NATO countries, the US and Europe increasing defence budgets. At the same time, defence is no longer only about aircraft, ships and military hardware. Cybersecurity, data protection and critical infrastructure are now central parts of the wider security landscape.
The main reasons investors choose defence ETFs
- Defence spending exposure: Defence ETFs can give investors access to companies that may benefit from higher government security spending.
- Cybersecurity exposure: Some defence ETFs include companies focused on digital security, cyber defence and data protection.
- Thematic diversification: Defence ETFs can add exposure to a theme that behaves differently from some broader market sectors.
- Innovation exposure: Defence companies can be involved in drones, robotics, AI, aerospace and advanced communications.
- ISA and SIPP eligibility: Eligible ETFs can be held in tax-efficient accounts such as Stocks and Shares ISAs and SIPPs.
This does not mean defence ETFs are low risk. They can be concentrated, politically sensitive and affected by government spending decisions, regulation and broader market moves.
How to choose a defence ETF
The right defence ETF depends on the type of defence exposure you want, how much risk you are comfortable taking and how the fund fits with the rest of your portfolio.
| For investors seeking… | They might consider… | Example ETFs |
|---|---|---|
| Broad global defence exposure | Global defence ETFs | NATP, DFNG |
| European defence exposure | Europe-focused defence ETFs | WDEP |
| Defence technology exposure | Defence tech ETFs | ARMG, DFNX |
| Lower ongoing charges | Passive ETFs with lower TERs | DFNX, WDEP, NATP |
| Cybersecurity exposure | Digital security or cyber-focused ETFs | ISPY, CYBP, FCBR, SHLG |
| Accumulating dividends | Accumulating ETFs | NATP, DFNG, WDEP, ARMG, DFNX |
This table is not a recommendation. It simply shows how different defence ETFs can play different roles in a portfolio.
The 5 top defence ETFs in 2026
With several defence and security ETFs available, it helps to understand how each fund approaches the theme.
Some ETFs focus on broad defence contractors, while others target European defence companies, defence technology or cybersecurity-linked businesses.
1. Future of Defence ETF (NATP)
Future of Defence ETF (NATP) tracks an index of companies involved in defence and security, including advanced weapon systems, cybersecurity and logistics.
The fund focuses on companies contracted with NATO or allied nations.
Provider: HANetf
Strategy: Passive ETF tracking a global defence and security index
Why investors might consider it
- Offers a “one-stop” way to access the global defence theme
- Includes a mix of established contractors and security technology companies
- Uses an accumulating dividend structure
| Key detail | NATP |
|---|---|
| Launched | 7 February 2024 |
| Fund size | £2.59 billion |
| Ongoing charges | 0.49% |
| Dividend type | Accumulating |
| Region focus | Global |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for global defence and security exposure linked to NATO and allied nations.
2. VanEck Defense ETF (DFNG)
VanEck Defense ETF (DFNG) invests in companies across the defence industry, including equipment, systems and defence technology.
It provides diversified exposure to the global security supply chain.
Provider: VanEck
Strategy: Passive ETF focused on global defence companies
Why investors might consider it
- Offers broad global exposure to core defence companies
- One of the larger defence-focused ETFs on InvestEngine
- Uses an accumulating dividend structure
| Key detail | DFNG |
|---|---|
| Launched | 5 April 2023 |
| Fund size | £5.99 billion |
| Ongoing charges | 0.55% |
| Dividend type | Accumulating |
| Region focus | Global |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for broad global defence industry exposure.
3. WisdomTree Europe Defence ETF (WDEP)
WisdomTree Europe Defence ETF (WDEP) gives exposure to European defence companies.
Its index includes screens excluding firms involved in internationally banned weapons and certain norm violations.
Provider: WisdomTree
Strategy: Passive ETF focused on European defence companies
Why investors might consider it
- Provides focused exposure to Europe’s defence spending theme
- Uses index exclusions that some investors may prefer
- Has grown quickly since launch, reflecting strong investor interest
| Key detail | WDEP |
|---|---|
| Launched | 12 March 2025 |
| Fund size | £4.17 billion |
| Ongoing charges | 0.40% |
| Dividend type | Accumulating |
| Region focus | Europe |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for focused European defence exposure.
4. Global X Defence Tech ETF (ARMG)
Global X Defence Tech ETF (ARMG) targets defence technology companies.
The fund includes companies building and managing cybersecurity systems, using AI and big data, and producing advanced military hardware such as robotics and fuel systems.
Provider: Global X
Strategy: Passive ETF focused on defence technology
Why investors might consider it
- Offers a technology-tilted approach to defence
- Includes cybersecurity, AI, big data and advanced military hardware exposure
- Provides global exposure with meaningful US and Europe allocations
| Key detail | ARMG |
|---|---|
| Launched | 12 September 2024 |
| Fund size | £434 million |
| Ongoing charges | 0.50% |
| Dividend type | Accumulating |
| Region focus | Global |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for defence technology, cybersecurity and advanced hardware exposure.
5. Invesco Defence Innovation ETF (DFNX)
Invesco Defence Innovation ETF (DFNX) focuses on companies involved in defence, security and technological innovation related to national and global safety.
It includes companies across areas such as aerospace, defence technology and civilian security.
Provider: Invesco
Strategy: Passive ETF focused on defence, security and innovation
Why investors might consider it
- Covers a broad range of companies working in defence and security
- Uses an equal-weighted approach
- Has a low ongoing charge for a specialist thematic ETF
| Key detail | DFNX |
|---|---|
| Launched | 1 November 2024 |
| Fund size | £129 million |
| Ongoing charges | 0.35% |
| Dividend type | Accumulating |
| Region focus | Global, US tilted |
Source: Bloomberg. Correct as of 13/08/26.
Useful for: investors looking for defence, security and innovation exposure.
Comparing the top 5 defence ETFs side by side
Each ETF offers a different route into defence investing. Some take a broad global approach, while others focus more narrowly on Europe, defence technology or innovation.
| ETF name | Ticker | Strategy | TER | Dividend type | Launched | Region focus | Fund size |
|---|---|---|---|---|---|---|---|
| Future of Defence | NATP | Passive global defence and security index | 0.49% | Accumulating | 7 Feb 2024 | Global | £2.59bn |
| VanEck Defense | DFNG | Passive global defence industry index | 0.55% | Accumulating | 5 Apr 2023 | Global | £5.99bn |
| WisdomTree Europe Defence | WDEP | Passive European defence companies index | 0.40% | Accumulating | 12 Mar 2025 | Europe | £4.17bn |
| Global X Defence Tech | ARMG | Passive defence technology theme | 0.50% | Accumulating | 12 Sep 2024 | Global | £434m |
| Invesco Defence Innovation | DFNX | Passive defence, security and innovation theme | 0.35% | Accumulating | 1 Nov 2024 | Global, US tilted | £129m |
Source: Bloomberg. Correct as of 13/08/26.
More defence and security ETFs
The top 5 list covers some of the most popular defence ETFs on InvestEngine, but there are other funds that may suit different goals, especially investors looking for cybersecurity or digital security exposure.
L&G Cyber Security ETF (ISPY)
L&G Cyber Security ETF (ISPY) offers exposure to cybersecurity companies.
Rize Cybersecurity and Data Privacy ETF (CYBP)
Rize Cybersecurity and Data Privacy ETF (CYBP) includes companies that specialise in protecting personal and corporate data.
First Trust Nasdaq Cybersecurity ETF (FCBR)
First Trust Nasdaq Cybersecurity ETF (FCBR) gives exposure to global cybersecurity companies, with a US tilt.
iShares Digital Security ETF (SHLG)
iShares Digital Security ETF (SHLG) takes a broader approach to digital security, including areas such as identity protection and secure payments.
Risks of investing in defence ETFs
Defence ETFs can offer exposure to a powerful long-term theme, but they also come with risks.
Key risks to consider
- Geopolitical risk: Conflict, peace agreements, elections and policy shifts can all affect defence companies.
- Government spending risk: Defence companies often depend on public-sector contracts and budget decisions.
- Concentration risk: Some defence ETFs hold a relatively small number of specialist companies.
- Ethical concerns: Some investors may not want exposure to weapons, defence or military-linked industries.
- Market volatility: Defence ETFs are still equity investments and can fall during wider market downturns.
- Currency risk: Global holdings can be affected by exchange rate movements.
- Regulatory risk: Defence companies can be affected by export controls, sanctions and changes to national security rules.
These risks do not mean defence ETFs are unsuitable for everyone. They do mean investors should treat them as one part of a broader, balanced portfolio.
Key factors to consider when choosing a defence ETF
Not all defence ETFs are built the same. Before investing, it can help to look at five areas.
1. Understand the ETF’s focus
Some funds focus on traditional defence contractors, while others lean into cybersecurity, aerospace, robotics, AI or next-generation defence technology.
Reviewing the index, strategy and top holdings can help you see whether the fund matches the exposure you expect.
2. Look at geographic exposure
Some defence ETFs are global, while others focus on the US or Europe.
Geography matters because defence spending, regulation and procurement priorities vary by region.
3. Compare fund size and liquidity
Larger ETFs with more assets under management often trade more smoothly and with tighter spreads, which can lower the cost of buying and selling.
Smaller funds may still be useful, but investors should understand the potential liquidity risks.
4. Compare ongoing charges
Even small differences in charges can affect returns over time.
Compare the TER or OCF to see whether the fund offers good value for its strategy.
5. Check how it fits with your portfolio
Defence ETFs can be useful for thematic exposure, but they should still fit with your overall portfolio.
Consider whether the ETF adds diversification, increases concentration or overlaps with funds you already hold.
How to buy defence ETFs with InvestEngine
InvestEngine is a UK-based ETF investing platform, authorised and regulated by the Financial Conduct Authority, built for long-term investors who want to create DIY ETF portfolios.
With InvestEngine, you can buy and sell defence ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
You can invest through:
- A Stocks and Shares ISA
- A Self-Invested Personal Pension
- A General Investment Account
- A Business Investment Account
How it works
- Create an InvestEngine account
- Choose your account type — ISA, SIPP, GIA or Business Account
- Search for the defence ETF you want
- Choose how much to invest
- Set up a one-off investment or a regular Savings Plan
Why use InvestEngine?
✅ 0% dealing fees and 0% platform fee on DIY portfolios
Buy and sell defence ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
✅ Wide ETF choice
Access the defence ETFs covered in this article, plus a wide range of other ETFs across markets, sectors and themes.
✅ Regular investing
Set up a Savings Plan to invest regularly. Just choose how often and how much you want to invest.
✅ Your choice of account
Invest through an ISA, SIPP, GIA or Business Account.
Start investing in defence ETFs with InvestEngine
Capital at risk. T&Cs apply.
FAQs about defence ETFs
What are the top defence ETFs for UK investors?
The right defence ETF depends on your goals, risk appetite and investment timeframe. Popular defence ETFs on InvestEngine include Future of Defence ETF (NATP), VanEck Defense ETF (DFNG), WisdomTree Europe Defence ETF (WDEP), Global X Defence Tech ETF (ARMG) and Invesco Defence Innovation ETF (DFNX).
What is a defence ETF?
A defence ETF is an exchange-traded fund that invests in a basket of companies involved in defence, security, aerospace, military technology or cybersecurity.
Are defence ETFs risky?
Yes, defence ETFs can be risky. They may be more concentrated than broad global ETFs and can be affected by geopolitics, government spending, regulation, currency movements and wider stock market volatility.
Can you buy defence ETFs in a Stocks and Shares ISA?
Yes. Eligible defence ETFs can be held in a Stocks and Shares ISA. Investing through an ISA can help protect returns from UK capital gains tax and dividend tax.
Can you buy defence ETFs in a SIPP?
Yes. Eligible defence ETFs can be held in a Self-Invested Personal Pension, or SIPP. SIPPs are designed for long-term retirement investing and come with specific rules on access, tax relief and withdrawals.
Does InvestEngine charge dealing fees for defence ETFs?
InvestEngine charges 0% dealing fees for buying and selling ETFs. DIY portfolios also have 0% platform fees. ETF costs apply.
Are defence ETFs suitable for beginners?
Defence ETFs may be suitable for some beginners, but only if they understand the risks. They can provide exposure to a long-term theme, but they can still fall in value and may be more volatile or concentrated than broader ETFs.
In summary
Defence ETFs give UK investors a way to invest in companies linked to defence, security, aerospace, military technology and cybersecurity.
Some of the top defence ETFs on InvestEngine include NATP for global defence and security exposure, DFNG for broad global defence industry exposure, WDEP for European defence exposure, ARMG for defence technology exposure and DFNX for defence innovation exposure.
With InvestEngine, you can invest in defence ETFs through an ISA, SIPP, GIA or Business Account, with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
Defence may be a powerful long-term theme, but defence ETFs can still be volatile, concentrated and politically sensitive. Before investing, make sure the ETF fits your goals, risk appetite and wider portfolio.
Capital at risk. The value of your investments with InvestEngine can go down as well as up. You may get back less than you invest. Past performance is not a reliable indicator of future results.
ETF costs apply. This communication is for general information only and does not constitute personal advice.
Tax treatment depends on your personal circumstances and may change in future.