Solactive has announced its collaboration with Deka on the launch of the Deka Europe Defense UCITS ETF (ISIN: DE000ETFL664), which tracks the Solactive Europe Defense Index.
This product offers targeted exposure to leading European defence companies at a time when defence spending across the region is entering a sustained, long-term expansion phase.
Solactive writes that following decades of underinvestment, European countries are now significantly enhancing their national defence capabilities. “Defence budgets are increasingly recognised as vital to geopolitical stability and industrial resilience. A record 23 NATO member states are projected to meet or exceed the 2 per cent of GDP defence spending target in 2025, rising from only nine in 2020.
“EU Member States’ collective defence expenditure reached approximately EUR343 billion in 2024 (1.9 per cent of GDP) and is expected to grow to EUR381 billion in 2025, equivalent to around 2.1 per cent of GDP. Recent policy initiatives, including Germany’s special EUR500 billion defence fund, demonstrate a strong, multi-year political commitment to modernisation and capability enhancement.
“Recent geopolitical developments have reinforced the urgent need for European nations to strengthen sovereign defence capabilities, reduce reliance on external suppliers, and invest in advanced technologies. Demand is increasing for systems such as autonomous platforms, missile defence, naval systems, secure communications, cyber defence, and electronic warfare. European companies with expertise in these critical technologies stand to benefit from expanded procurement pipelines, increased R&D budgets, and long-term strategic planning.”
The Solactive Europe Defense Index is designed to capture this evolving market environment by selecting companies primarily engaged in the defence sector. The index is derived from the Solactive GBS Global Markets Defense All Cap USD Index and includes companies classified as Defence Manufacturers, Defence Suppliers, or Diversified Defence Players within Developed Markets Europe. It selects 30 constituents based on free-float market capitalisation while applying weight caps of 10 per cent for Defence Manufacturers and Defence Suppliers and 2 per cent for Diversified Defence Players to ensure balanced diversification across the defence value chain. The index excludes companies involved in the production of controversial weapons, including anti-personnel mines, cluster munitions, biological and chemical weapons, as well as weapons with incendiary or blinding effects.
The ETF was listed on 1st December 2025 on XETRA, Frankfurt Stock Exchange and Stuttgart Stock Exchange with the ticker “D6RU”.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “We are pleased to support Deka in launching the Deka Europe Defense UCITS ETF. As European nations embark on a structural investment cycle in defence and technological sovereignty, this index offers a transparent, rules-based reflection of the companies shaping Europe’s evolving security landscape. We look forward to continuing our partnership with Deka and delivering robust index solutions for their innovative product lineup.”
Thomas Pohlmann, Head of ETF Product Management at Deka Investment, says: “Defence has become an investment trend. European NATO member states have significant catching up to do in terms of defence capabilities. Companies in this sector are likely to receive numerous orders in the coming years, which should have a positive impact on their stock prices.”
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