HANetf has listed the Future of Defence UCITS ETF (ticker: NATO) on the Warsaw Stock Exchange.
The firm writes that the ETF provides exposure to NATO and NATO+ ally defence and cyber defence spending.
The NATO ETF has over USD2.8 billion in AUM and sits alongside the EUR160 million Future of European Defence UCITS ETF (ticker: ARMY) and the recently launched Future of Defence Indo-Pac ex-China UCITS ETF (ticker: QUAD).
Poland is an increasingly prosperous economy, the firm writes. “Over the past 30 years, the country’s income per capita has trebled, with its living standards expected to soon eclipse those of Japan. With this growing prosperity comes growing demand for investment solutions. HANetf therefore expects Poland to be a key growth market for ETFs. In 2024, HANetf listed The Royal Mint Responsibly Sourced Physical Gold ETC (ticker: RMAU) on the GPW.
“At the same time, HANetf also expects the defence investment theme to resonate within the Polish market. Poland has been at the forefront of the European defence spending trend. The country is already on track to spend almost 5 per cent of GDP on defence per year – a target that other European NATO members have given themselves 10 years to reach.
“The ETF stands out for its strict requirement to invest only in companies domiciled in NATO and NATO-allied countries. Focusing on defence companies based in NATO member states provides exposure to firms operating in well-regulated jurisdictions, aligned with collective security and long-term strategic interests. By statute, NATO is a defensive alliance – its purpose is deterrence and collective defence, not aggression.
“This focus also aligns with the sharp rise in military spending across the alliance. In 2024, NATO members spent a combined USD1.5 trillion on defence, representing 55 per cent of global military expenditure. That total was up 9 per cent year-on-year and 31 per cent higher than in 2015. Nearly all member states now meet or exceed the 2 per cent of GDP spending target, with growing political momentum behind proposals to raise the threshold to 3 per cent or even 5 per cent. For investors, this shift marks a structural rearmament trend that could reshape Europe’s industrial and security landscape.
NATO has now formally agreed to target defence spending of 5 per cent of GDP. Were that to be met by NATO’s European members, it would require a historic expansion of defence budgets.
“Another unique aspect of the NATO ETF is its exposure to cyber security companies. As cyber threats become a central element of modern conflict, the NATO alliance has prioritised digital defence alongside traditional capabilities. Notably, 1.5 per cent of the new 5 per cent NATO defence spending target is earmarked for non-core areas including cyber.”
Hector McNeil, Co-Founder and Co-CEO of HANetf, says: “We’re delighted to list the Future of Defence UCITS ETF (ticker: NATO) on the Warsaw Stock Exchange. Poland is one of Europe’s fastest-growing economies, with a rapidly expanding investor base that is increasingly turning to ETFs. At the same time, Poland is playing a leading role in Europe’s defence renaissance – both as a front-line NATO member and as one of the highest spenders on defence in the alliance. The NATO ETF is designed to capture this powerful shift.”
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