Disruptive Theme of the Week: Defense Technology

A confluence of factors have combined to make defense technology a compelling ETF investment theme including:

  • Rising global instability, such as the conflicts in the Middle East and Ukraine;
  • Years of underinvestment in defense and military equipment, especially in Europe;
  • NATO’s goal that its members allocate 2% of GDP to defense by 2024;
  • Heightened demand for modern defense solutions that utilize technologies like artificial intelligence (AI), cyber defense, and unmanned vehicles and robotics;
  • The reconfiguration of supply chains and joint procurement to facilitate more scalable solutions.