NATO

Future of Defence UCITS ETF – Acc

Exposure to NATO and NATO+ ally defence and cyber defence spending through a defence ETF.

HANetf ICAV – Shareholder notice: EGM results – YODA into NATO Merger

Case for our Defence ETF

Increased NATO and NATO+ ally spending

Despite record defence spending in 2022, most European NATO members need to spend more to close the gap and reach the 2% of GDP target outlined by the alliance.

Need for modernised defence solutions

The defence ETF provides access to companies exposed to NATO and NATO+ ally which spending stand to benefit from the growing need for modernised defence solutions to counter the rise in data breaches and cyber-attacks.

Global growth opportunity

The defence market is expected to grow at a CAGR of 5.6% to $718.12 billion by 2027, and the cybersecurity market by a CAGR of 8.9% over the same period.

As of 22.04.2024

Fund Objective

Future of Defence UCITS ETF (NATO) provides exposure to the companies generating revenue from NATO and NATO+ ally defence and cyber defence spending. Global military spending is rising. In 2022, $2.2 trillion was spent on defence — the highest level ever recorded. With the ongoing geopolitical tensions, one area of growth is among European NATO members. But despite such record spending, most European NATO members are still lagging the 2% of GDP target. Simultaneously, we are seeing a sharp rise in cyber attacks by state-sponsored actors, necessitating the need for cyber defence, as well as physical defence.

Key Information

Inception Date03/07/2023
Base currencyUSD
Net Assets of Fund$327,145,127
TER49 bps
Replication MethodPhysical
DomicileIreland
SFDR ClassificationArticle 6
ISINIE000OJ5TQP4

Key Risks

Thematic ETFs are exposed to a limited number of sectors and thus the investment will be concentrated and may experience high volatility. Investors capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns.

Fund Information

TickerNATO
Asset ClassEquities
Income TreatmentAccumulating
Rebalance FrequencyQuarterly

Net Asset Values

NAV$10.13
Net Assets of Fund$327,145,127
Shares Outstanding32,286,001
Issuer AUM$1,106,164,051

Fund Structure

UCITS CompliantYes
UCITS EligibleYes
ISA EligibleYes
SIPP EligibleYes
UK Fund Reporting StatusYes
Securities LendingYes

Key Service Providers

CustodianJ.P. Morgan SE - Dublin Branch
Portfolio ManagerVident Advisory, LLC
IssuerHANetf ICAV

Registrations

Austria
Denmark
Finland
France
Germany
Ireland
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
United Kingdom

Listings & Codes

ExchangeTickerRICSEDOLCCYListing Date
LSENATO LNNATO.LBP6N0Z2$2023-07-04
LSENATP LNNATP.LBP6N104£2023-07-04
XetraASWC GYASWC.DEBMBR6502023-07-04
Borsa ItalianaNATO IMNATO.MIBMBR6492023-07-14
SIXNATO SENATO.SBRXJS972024-01-11
BMVNATON MF-BPGN7K6MX$2024-02-26
Euronext ParisNATO FPNATO.PABQRGHW32024-02-22
Exchange LSE
Ticker NATO LN
RIC NATO.L
SEDOL BP6N0Z2
CCY $
Listing Date 2023-07-04
Exchange LSE
Ticker NATP LN
RIC NATP.L
SEDOL BP6N104
CCY £
Listing Date 2023-07-04
Exchange Xetra
Ticker ASWC GY
RIC ASWC.DE
SEDOL BMBR650
CCY
Listing Date 2023-07-04
Exchange Borsa Italiana
Ticker NATO IM
RIC NATO.MI
SEDOL BMBR649
CCY
Listing Date 2023-07-14
Exchange SIX
Ticker NATO SE
RIC NATO.S
SEDOL BRXJS97
CCY
Listing Date 2024-01-11
Exchange BMV
Ticker NATON MF
RIC -
SEDOL BPGN7K6
CCY MX$
Listing Date 2024-02-26
Exchange Euronext Paris
Ticker NATO FP
RIC NATO.PA
SEDOL BQRGHW3
CCY
Listing Date 2024-02-22

Returns

NATO (Fund)NATONTR (Index)
1M3.84%3.87%
3M17.80%17.98%
6M36.99%37.32%
YTD17.80%17.98%
12M-42.70%
3Y-75.68%
Since Inception (03/07/2023)35.86%36.29%

Performance chart

NAV

Source: HANetf, data as of 31.03.2024. Please note that all performance figures are showing net data. Performance before inception is based on back-tested data. Back-testing 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. If fund is less than 12 months old, YTD field will be calculated since inception. When you invest in ETFs your capital is at risk.

Holdings As of 22.04.2024

No. of holdings: 50

NameWeight
RHEINMETALL AG COMMON7.08%
SAFRAN SA COMMON STOCK5.46%
THALES SA COMMON STOCK5.07%
BAE SYSTEMS PLC5.03%
CYBERARK SOFTWARE LTD4.69%
CHECK POINT SOFTWARE4.64%
RTX CORP4.21%
GENERAL DYNAMICS CORP4.13%
PALANTIR TECHNOLOGIES INC4.04%
CROWDSTRIKE HOLDINGS INC3.58%

SectorWeight
Industrials57.45%
Technology42.32%
Other0.23%

Methodology

Companies must derive the majority of their revenues from the manufacture and development of military aircraft and/or defence equipment, or have operations in cyber security, contracted with a NATO or NATO+ allied country. Rebalanced quarterly.

Index Details

IndexEQM Future of Defence Index
Index CurrencyUSD
Index ProviderEQM
Index TickerNATONTR
Index Dividend Yield
(As of 31.03.2024)
1.19%

Knowledge hub

Explore our expert-written monthly fund reports, periodic reviews, and key insights.

Video

Explore the latest video featuring Head of Research at HANetf Tom Bailey, discuss what makes the future of defence ETF unique, and how it ensures only companies within NATO and NATO+ states will be included.

Awards

Best Innovative Newcomer ETF (2024)

XENIX ETF Special Awards UK

At the XENIX ETF Special Awards UK 2024, Future of Defence UCITS ETF (NATO) was crowned Best Innovative Newcomer ETF. The defence ETF, launched in July of last year, provides exposure to NATO and NATO+ ally defence and cyber defence spending. In only 8 months, the fund has accrued over $235 million assets under management (AUM).[1]
[1] AUM accurate as at 19.03.2024.