3 Defense ETFs to Buy as Europe Rearming Cycle Accelerates Into 2026

European governments are raising defense budgets to their highest levels since the Cold War, supporting a favorable backdrop for defense-linked exchange-traded funds. The article points to three ETFs as ways to gain exposure to the spending cycle, implying potential inflows into the defense sector. The move is driven by elevated geopolitical tensions and increased fiscal outlays rather than company-specific fundamentals.

Analysis

European governments are raising defense budgets to their highest levels since the Cold War, supporting a favorable backdrop for defense-linked exchange-traded funds. The article points to three ETFs as ways to gain exposure to the spending cycle, implying potential inflows into the defense sector. The move is driven by elevated geopolitical tensions and increased fiscal outlays rather than company-specific fundamentals.