Published Date: September 23, 2025
Author: HANetf
NATO defence spending surges to record $1.6 trillion – Defence spending among NATO allies is expected to increase 15.9% in 2025, the second largest annual increase in more than a decade as spending increased to $1.6 trillion. The annual overall spending increase for 2025 was 15.9%, down slightly from the previous year’s annual boost but still larger than at any other time in recent NATO history. NATO defence spending rose 9.3% in 2023 and 18.6% in 2024 amid concerns about further Russian aggression in Europe. NATO reports that 31 out of the 32 NATO members are now achieving the 2% of GDP target, except Iceland which is exempt. This increase in spending comes at a time when allies will be shooting for an even higher target of 5% of GDP, which will include 3.5% in traditional defence priorities and 1.5% dedicated to infrastructure and defence technology.1
US disapproves of creative NATO accounting – The US disapproves of NATO’s “creative accounting” methods to achieve the new 5% of GDP target. US Ambassador to NATO Matthew Whitaker said the 5% target referred specifically to defence and defence-related spending, and should not include projects like bridges with no military strategic value. This puts Italy on the spot for its proposed €13.5 billion ($15.7 billion) project to connect the island of Sicily to Italy’s mainland, which is being classified as a dual use defence project and NATO military asset. Proponents highlight its potential to enhance southern Europe’s strategic connectivity, enabling faster NATO responses to Mediterranean threats. Greece’s inclusion of intelligence-gathering expenditures in its defense budget, and the UK’s reclassification of pensions as defense-related spending, have also drawn scrutiny as creative accounting. Whitaker raised practical concerns about 1) lack of troops, 2) weak economic growth in Europe, and 3) cyber risks. Cyber risks were recently elevated as a significant concern after a plane carrying European Commission President Ursula von der Leyen was disrupted by jamming as it landed in Bulgaria. Authorities said the interference was likely initiated by Russia.2
Only three countries achieving the new NATO target – Figures for 2025 showed all allies achieving the 2% of GDP target, but only three countries are now spending more than 3.5% on defence in line with the new 5% of GDP guidelines: Poland at 4.48%, Lithuania at 4% and Latvia with 3.73%. While NATO Secretary General Mark Rutte praised higher defence spending by alliance members, he said it was important to turn the extra money into military capabilities. „Cash alone doesn’t provide security,“ Rutte said at the factory in the town of Unterluess owned by German arms firm Rheinmetall. „Deterrence doesn’t come from 5%. Deterrence comes from the capability to fight off potential enemies.3
European defence stocks send false peace signal – European defence stocks sold off on the prospect of a peace agreement between Russia and Ukraine. Eight big European military suppliers, collectively worth $307 billion, lost over $15 billion or 5% of their equity value by midmorning London time the following day. Worst hit were Germany’s $7 billion Renk, which makes tank gearboxes, and Italy’s $30 billion Leonardo, known for helicopters and surveillance systems. These names have since rebounded on the false signal of hope, but it highlights the premium valuations in play amid soaring price-earnings multiples.4
What are the tailwinds for European defence? – A recent Goldman Sachs report highlights how Europe holds a significant advantage as a world power in the realm of defence and foreign policy. The EU remains the world’s second-largest economy. Europe’s economic capacity, human capital, ongoing investments and reforms, and leadership at the national and supranational levels demonstrate that it can play a stronger role in global affairs.
NATO strengthens dialogue and cooperation with Indo-Pacific region – NATO is strengthening dialogue and cooperation with its partners in the Indo-Pacific region – Australia, Japan, the Republic of Korea, and New Zealand. In today’s complex security environment, relations with like-minded partners are increasingly important to address cross-cutting security issues and global challenges. The Indo-Pacific Region is important for the Alliance, given that developments in that region can directly affect Euro-Atlantic security. Moreover, NATO and its partners in the region share common values and a goal of working together to uphold the rules-based international order. In addition to dialogue, two landmark documents were agreed in 2022 that enhanced NATO’s cooperation with the partners from the Indo-Pacific region: the “Agenda for Tackling Shared Security Challenges” and “NATO 2022 Strategic Concept”.6
Australia and the Philippines wrap up exercises –The Exercise Alon 25 concluded successfully in the Philippines, strengthening the security partnership between the Australian Defence Force (ADF) and the Armed Forces of the Philippines (AFP). Alon 25, the ADF’s largest overseas exercise this year, involved approximately 3,600 participants, including 1,600 ADF personnel training together between 15 and 29 August.7
Company News – Earnings Analysis (NATO)
Source: VettaFi as of 31.08.2025. For illustrative purposes only.
Company News – Earnings Analysis (ARMY)
Company News – Earnings Analysis (QUAD)
Largest positive Q2 2025 earnings surprises (NATO)
Largest negative Q2 2025 earnings surprises (NATO)
Largest positive Q2 2025 earnings surprises (ARMY)
Largest negative Q2 2025 earnings surprises (ARMY)
Largest positive Q2 2025 earnings surprises (QUAD)
Largest negative Q2 2025 earnings surprises (QUAD)
Product Comparisons
Macro Outlook – Resurgent demand for defence capabilities shifts focus to efficiencies and next-gen solutions
A rise in global conflicts and geopolitical instability has prompted over 100 countries to increase military spending to record levels of $2.7 trillion, creating a surge in demand for defence capabilities – described by Morningstar as a “new defense supercycle”. Morningstar expects European defence spending to be a key driver of this new cycle. European defence budgets are set to grow 6.8% annually from 2024 to 2035, outpacing the US (1.7%), Russia (3.2%), and China (3.1%). Europe’s share of global defence spending is projected to increase from 16% to 22% by 2030, stabilizing through 2035. Beyond Europe, global governments are increasing defense budgets to fund modernisation efforts against emerging threats. There is a rising focus on incorporating advanced technologies like Artificial Intelligence (AI), autonomous systems, and data analytics into defense applications, with companies leading in these areas becoming prime investment targets. New threats in areas like space and cyber warfare are driving increased investment in advanced capabilities, including satellite technology.8
NATO (Fund)NATONTR (Index)1M-4.22%-4.20%3M2.19%2.32%6M9.28%9.51%YTD12.64%13.00%12M5.47%5.90%3Y169.33%173.43%Since Inception (03/07/2023)167.11%171.37%Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of
Performance before inception is based on back-tested data. Backtesting is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs your capital is at risk.
[1] https://www.stripes.com/theaters/europe/2025-09-02/nato-annual-defense-spending-18951124.html
[2] https://www.bloomberg.com/news/articles/2025-09-02/us-frowns-on-italy-s-idea-of-making-sicily-bridge-a-nato-asset?sref=on4LSPp2
[3] https://www.reuters.com/business/aerospace-defense/all-nato-members-hit-old-spending-target-only-three-meet-new-goal-2025-08-27/
[4] https://www.reuters.com/commentary/breakingviews/european-defence-stocks-send-false-peace-signal-2025-08-19/
[5] https://www.goldmansachs.com/insights/articles/the-future-of-european-defense
[6] https://www.nato.int/cps/en/natohq/topics_183254.htm
[7] https://asiapacificdefencereporter.com/australia-the-philippines-wrap-up-exercise-alon-25/
[8] https://www.blackrock.com/us/individual/insights/defense-sector-on-the-radar#:~:text=Quick%20Read,Investment%20in%20A.I.; https://www.pwc.com/us/en/industries/industrial-products/library/aerospace-defense-deals-outlook.html; https://www.morningstar.com/financial-advisors/global-defense-market-trends-how-geopolitical-shifts-are-shaping-opportunities-sector
New Space ETF Report | October 2026
Oktober 2026
Making Europe Great Again ETF | October 2026
Ukraine Reconstruction ETF Report | October 2026
Copper Miners ETF Report | September 2026
September 2026
Gold Miners Screened ETF Report | September 2026
Tech Megatrends ETF Report | September 2026
Midstream Energy Dividend ETF Report | September 2026
Active Global Equity Shariah ETF Report | September 2026
Future of Defence Report | September 2026
Drone ETF Report | September 2026
Making Europe Great Again ETF | September 2026
Silver ETF Report | September 2026
Ukraine Reconstruction ETF Report | September 2026
Emerging Markets ETF & India Internet ETF Report | August 2026
Copper Miners ETF Report | August 2026
Drone ETF Report | August 2026
Future of Defence Report | August 2026
Gold Miners Screened ETF Report | August 2026
Making Europe Great Again ETF | August 2026
Midstream Energy Dividend ETF Report | August 2026
Ukraine Reconstruction ETF Report | August 2026
Silver ETF Report | August 2026
Uranium Miners Monthly Report | August 2026
August 2026
Tech Megatrends ETF Report | August 2026
Active Global Equity Shariah ETF Report | July 2026
Tech Megatrends ETF Report | July 2026
Canadian Enhanced Income ETF Quarterly Report | July 2026
Preferred Income Quarterly Report | July 2026
Silver ETF Report | July 2026
Active U.S Bond Quarterly Report | July 2026
Juli 2026
Midstream Energy Dividend ETF Report | July 2026
Healthcare ETF Quarterly Report | July 2026
Uranium Miners Monthly Report | July 2026
Total Return Income ETF Quarterly Report | July 2026
Ukraine Reconstruction ETF Report | July 2026
Gold Miners Screened ETF Report | July 2026
Future of Defence Report | July 2026
Making Europe Great Again ETF | July 2026
Cat Bond Quarterly Report | July 2026
Active U.S Bond Monthly Report | July 2026
Tech Megatrends ETF Report | June 2026
Juni 2026
Ukraine Reconstruction ETF Report | June 2026
Active Global Equity Shariah ETF Report | June 2026
Midstream Energy Dividend ETF Report | June 2026
Drone ETF Report | June 2026
Future of Defence Report | June 2026
Making Europe Great Again ETF Report | June 2026
Gold Miners Screened ETF Report | June 2026
Tech Megatrends ETF Report | May 2026
Mai 2026
Active Global Equity Shariah ETF Report | May 2026
Copper Miners ETF Report | May 2026
Future of Defence Report | May 2026
Drone ETF Report | May 2026
Making Europe Great Again ETF | May 2026
Ukraine Reconstruction ETF Report | May 2026
Midstream Energy Dividend ETF Report | May 2026
Gold Miners Screened ETF | May 2026
Total Return Income ETF Quarterly Report | April 2026
April 2026
Focused Equity Quarterly Report | April 2026
Cat Bond Quarterly Report | April 2026
Midstream Energy Dividend ETF Report | April 2026
Making Europe Great Again ETF | April 2026
Defence ETF Report | April 2026
Active U.S. Bond Quarterly Report | March 2026
Gold Miners ETF Report | April 2026
Middlefield Canadian Enhances Income ETF Quarterly Report | May 2026
REX Covered Call Report | April 2026
Health Care ETF Quarterly Report | April 2026
Tech Megatrends ETF Report | March 2026
März 2026
Tech Megatrends ETF Report | February 2026
Februar 2026
Midstream Energy Dividend ETF Report | February 2026
Make Europe Great Again ETF Report | February 2026
Defence ETF Report | February 2026
Uranium Miners ETF Report | February 2026
Gold Miners Screened ETF | February 2026
Midstream Energy Dividend ETF Report | January 2026
Januar 2026
Future of Defence Report | January 2026
Copper Miners ETF Report | January 2026
ESGO Gold Miners Screened ETF Report | January 2026
Tech Megatrends ETF Report | January 2026
Preferred Income Quarterly Report | January 2026
Active U.S. Bond Quarterly Report | January 2026
Total Return Income ETF Quarterly Report | January 2026
Middlefield Enhanced Income ETF Quarterly Report | January 2026
Making Europe Great Again ETF Report | January 2026
Midstream Energy Dividend ETF Report | November 2025
November 2025
EU Carbon Market Monthly Report | November 2025
Emerging Markets ETF & India Internet ETF Report | November 2025
Travel ETF Quarterly Report | October 2025
Oktober 2025
Active U.S. Bond Quarterly Report | October 2025
Active Global Equity Shariah ETF Report | October 2025
Future of Defence Report | October 2025
EU Carbon Market Monthly Report | October 2025
Uranium Miners ETF Report | October 2025
Midstream Energy Dividend ETF Report | October 2025
Tech Megatrends ETF Report | October 2025
Copper Miners ETF Monthly Report | October 2025
Active Global Equity Shariah ETF Report | September 2025
September 2025
EU Carbon Market Monthly Report | September 2025
Emerging Markets ETF & India Internet ETF Report | September 2025
Tech Megatrends ETF Report | September 2025
Crypto Magnified – The leverage update
Active Global Equity Shariah ETF Report | July 2025
Juli 2025
Tech Megatrends ETF Report | July 2025
Uranium Miners ETF Report | July 2025
Travel ETF Quarterly Report | July 2025
Health Care ETF Quarterly Report | July 2025
Active U.S. Bond Quarterly Report | July 2025
Midstream Energy Dividend ETF Report | July 2025
EU Carbon Market Monthly Report | July 2025
Emerging Markets ETF & India Internet ETF Report | July 2025
Active Global Equity Shariah ETF Report | June 2025
Juni 2025
Midstream Energy Dividend ETF Report | June 2025
Future of Defence Report | June 2025
Uranium Miners ETF Report | June 2025
Copper Monthly Report | June 2025
EU Carbon Market Monthly Report | June 2025
Active Global Equity Shariah ETF Report | May 2025
Mai 2025
Uranium Miners ETF Report | May 2025
EU Carbon Market Monthly Report | May 2025
Emerging Markets ETF & India Internet ETF Report | May 2025
Travel ETF Report | May 2025
Midstream Energy Dividend ETF Report | May 2025
Tech Megatrends ETF Report | May 2025
Future of Defence Report | May 2025
Active Global Equity Shariah ETF Report | April 2025
April 2025
ESG Copper Miners ETF Report | April 2025
Tech Megatrends ETF Report | April 2025
Future of Defence Report | April 2025
Active U.S. Bond Quarterly Report | April 2025
Midstream Energy Dividend ETF Report | April 2025
Uranium Miners ETF Report | April 2025
Health Care ETF Quarterly Report | April 2025
Emerging Markets ETF & India Internet ETF Report | April 2025
EU Carbon Market Monthly Report | April 2025
Travel ETF Report | April 2025
Midstream Energy Dividend ETF Report | March 2025
März 2025
Active Global Equity Shariah ETF Report | March 2025
Travel ETF Report | March 2025
Uranium Miners ETF Report | March 2025
Future of Defence ETF Report | March 2025
Emerging Markets ETF & India Internet ETF Report | March 2025
Tech Megatrends ETF Report | March 2025
Uranium Miners ETF Report | February 2025
Februar 2025
Emerging Markets ETF & India Internet ETF Report | February 2025
EU Carbon Market Monthly Report | February 2025
Tech Megatrends ETF Report | February 2025
Crypto Report | February 2025
Midstream Energy Dividend ETF Report | February 2025
Travel ETF Report | February 2025
Emerging Markets ETF & India Internet ETF Report | January 2025
Januar 2025
Copper Monthly Report | January 2025
Active U.S Bonds Quarterly Report | January 2025
EU Carbon Market Monthly Report | January 2025
Uranium Miners ETF Report | January 2025
Active Global Equity Shariah ETF Report | January 2025
Future of Defence Report | January 2025
Travel ETF Report | January 2025
Health Care ETF Quarterly Report | January 2025
Midstream Energy Dividend ETF Report | January 2025
ESG Gold ETF Report | January 2025
Crypto Report | January 2025
Active Global Equity Shariah ETF Report | December 2024
Dezember 2024
Future of Defence Report | December 2024
Travel ETF Report | December 2024
Emerging Markets ETF & India Internet ETF Report | December 2024
EU Carbon Market Monthly Report | December 2024
Midstream Energy Dividend ETF Report | December 2024
ESG Gold ETF Report | December 2024
EU Carbon Market Monthly Report | November 2024
November 2024
Emerging Markets ETF & India Internet ETF Report | November 2024
Midstream Energy Dividend ETF Report | November 2024
Active Global Equity Shariah ETF Report | November 2024
Future of Defence Report | November 2024
Tech Megatrends ETF Report | November 2024
ESG Gold ETF Report | November 2024
EU Carbon Market Monthly Report | October 2024
Oktober 2024
Uranium Miners ETF Report | October 2024
Health Care ETF Quarterly Report | October 2024
Midstream Energy Dividend ETF Report | October 2024
Emerging Markets ETF & India Internet ETF Report | October 2024
Crypto Report | October 2024
Active Global Equity Shariah ETF Report | October 2024
ESG Gold ETF Report | October 2024
Tech Megatrends ETF Report | October 2024
Future of Defence Report | October 2024
Travel ETF Report | October 2024
Emerging Markets ETF & India Internet ETF Report | September 2024
September 2024
Uranium Miners ETF Report | September 2024
Active Global Equity Shariah ETF Report | September 2024
Crypto Report | September 2024
Midstream Energy Dividend ETF Report | September 2024
Future of Defence Report | September 2024
Travel ETF Report | September 2024
Tech Megatrends ETF Report | September 2024
ESG Gold ETF Report | September 2024
Energy Transition Materials ETF Report | August 2024
August 2024
Defence and Aerospace ETF Report | August 2024
Emerging Markets ETF & India Internet ETF Report | August 2024
Tech Megatrends ETF Report | August 2024
Crypto Report | August 2024
Active Global Equity Shariah ETF Report | August 2024
ESG-Screened Gold Miners ETF Report | August 2024
Midstream Energy Dividend ETF | August 2024
Midstream Energy Dividend ETF | July 2024
Juli 2024
Defence and Aerospace ETF Report | July 2024
Uranium Miners ETF Report | July 2024
Active Global Equity Shariah ETF Report | July 2024
Emerging Markets ETF & India Internet ETF Report | July 2024
Energy Transition Materials ETF Report | July 2024
ESG-Screened Gold Miners ETF Report | July 2024
Tech Megatrends ETF Report | July 2024
Crypto Report | July 2024
Emerging Markets ETF & India Internet ETF Report | June 2024
Juni 2024
Midstream Energy Dividend ETF | June 2024
Active Global Equity Shariah ETF Screened Report | June 2024
Tech Megatrends ETF Report | June 2024
Future of Defence Report | June 2024
Uranium Miners ETF Report | June 2024
Energy Transition Material ETF Report | June 2024
Crypto Report | June 2024
ESG-Screened Gold Miners ETF Report | June 2024
Emerging Markets ETF & India Internet ETF Report | May 2024
Mai 2024
5G Digital Infrastructure ETF Report | May 2024
Energy Transition Material ETF Report | May 2024
Midstream Energy Dividend ETF Report | May 2024
Global Equity Active Shariah ETF Screened Report | May 2024
Tech Megatrend ETF Report | May 2024
Future of Defence Report | May 2024
Crypto Report | May 2024
ESG-Screened Gold Miners ETF Report | May 2024
Defence ETF Report | April 2024
April 2024
Energy Transition Material ETF Report | April 2024
Uranium Miners ETF Report | April 2024
Midstream Energy ETF | April 2024
Crypto Report | April 2024
Global Equity Active Shariah ETF Screened Report | April 2024
Future of Defence ETF Report | Apr 2024
Tech Megatrend ETF Report | March 2024
März 2024
Midstream Energy ETF Report | Mar 2024
Future of Defence ETF Report | Mar 2024
5G Digital Infrastructure ETF Report | Mar 2024
Airlines ETF Report | Mar 2024
Energy Transition Materials ETF Report | Mar 2024
Emerging Markets and India Internet ETF Report | Mar 2024
Uranium Miners ETF Report | Mar 2024
Decarbonisation Enablers ETF Report | Mar 2024
Metaverse ETF Report | March 2024
Global Equity Shariah ETF Screened Report | Mar 2024
Crypto Report | Mar 2024
ESG Gold Mining ETF Report | Mar 2024
Energy Transition Materials ETF Report | Feb 2024
Februar 2024
ESG Gold Mining ETF Report | Feb 2024
EV Charging Infrastructure ETF Report | Feb 2024
Midstream Energy ETF Report | Feb 2024
Global Equity Active Shariah ETF Screened Report | Feb 2024
Decarbonisation Enablers ETF Report | Feb 2024
Crypto Report | Feb 2024
Airlines ETF Report | Feb 2024
Cloud Technology ETF Report | Feb 2024
Tech Megatrend ETF Report | Feb 2024
Digital Assets Report | Feb 2024
Islamic Equity Monthly Report | December
Dezember 2023
Midstream Energy Monthly Report | December
Airlines ETF Monthly Report | December
Future of Defence ETF Monthly Report | December
ESG-Screened Gold Miners ETF Monthly Report | December
Emerging Markets ETF Monthly Report | November
November 2023
Energy Transition Materials ETF | Monthly Report
Future of Defence ETF Monthly Report | November
Midstream Energy ETF Monthly Report | November
Travel ETF Monthy Report | November
ESG Gold Mining ETF Monthly Report | November
Future of Finance ETF Monthly Report | November
Shariah ETF Monthly Report | November
Airlines Monthly Report | November
Digital Infrastructure ETF Monthly Report | November
Crypto Monthly Report | November
Digital Assets Monthly Report | November
Januar 1970
Select Your Country
Select Your Investor Type
Choose a brokerage
Choose a product
You are now leaving HANetf's website and accessing a third-party website. HANetf may provide access to information, products, or services offered on websites that are owned or operated by other companies ("third-party websites"). We provide this access through the use of hyperlinks that automatically move you from a HANetf website to the third-party site.
While we do our best to provide you with helpful, trustworthy resources, HANetf cannot endorse, approve, or guarantee information, products, services, or recommendations provided at a third-party website. Since we may not always know when information on a linked site changes, HANetf is not responsible for the content or accuracy of any third-party website. HANetf shall not be responsible for any loss or damage of any sort resulting from the use of a link on its websites nor will it be liable for any failure of products or services advertised or provided on these linked sites.
HANetf offers you links on an "as is" basis. When you visit a third-party website by using a link on a HANetf site, you will no longer be protected by the HANetf privacy policy or security practices. The data collection, use, and protection practices of the linked site may differ from the practices of HANetf sites. You should familiarize yourself with the privacy policy and security practices of the linked website. Those are the policies and practices that will apply to your use of the linked website, not the HANetf policies and practices.
Here are some tips to help you tell if you have left a HANetf website:
Important Notice: HANetf is a provider of Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). We do not sell investment products directly to individual investors. Our funds are available through regulated investment platforms and brokers. Our only official website is www.hanetf.com. Any other domain is not affiliated with or authorised by HANetf in any way. If you suspect fraudulent activity, please contact your local financial regulator and/or the police and report the website or individual involved.
Select Your Country Please choose one of the following options:
Select Investor Type Please Choose one of the Following options to enter the site: