WisdomTree Europe Defence

ETF description

This ETF focuses on companies in the defence and aerospace industries across Europe. It includes businesses involved in manufacturing military equipment, developing advanced technology for security, and providing services to defence organizations. The ETF aims to track an index that represents the overall performance of this sector, covering a mix of large, well‑established companies and smaller, specialized firms.

This ETF may appeal to investors who are interested in tracking developments in the defence and aerospace industry as part of a broader investment portfolio.

Issuer details

WisdomTree is a leading asset management firm specializing in innovative ETFs and ETPs (exchange‑traded products), with over $80 billion in assets under management as of June 2024. WisdomTree offers an extensive range of investment products across various market segments. Founded in 2006, WisdomTree is known for its fundamentally weighted ETFs and its focus on providing innovative and thematic investment strategies. The firm places a strong emphasis on income‑focused products, catering to the needs of income‑seeking investors. Notable ETFs include the WisdomTree U.S. Quality Dividend Growth Fund (DGRW), the WisdomTree Europe Hedged Equity Fund (HEDJ), and the WisdomTree Cloud Computing Fund (WCLD), reflecting WisdomTree’s commitment to delivering diverse and forward‑looking investment solutions.

Index details

The Index is designed to track the performance of European companies involved in the defence sector.

The selection of European companies within the Index is based on their revenue exposure to the defence sector. The Index further seeks to exclude companies that are involved in weapons banned by international law, such as cluster munitions, antipersonnel landmines, and biological and chemical weapons. Additionally, the Index seeks to exclude companies that violate certain commonly accepted international norms and standards, such as the UN’s Global Compact principles.

A minimum of 20 stocks that meet the revenue exposure criteria as well as additional requirements such as minimum market capitalization and liquidity, are selected for inclusion. The selected companies in the Index are weighted by free‑float market capitalization adjusted by the Exposure Score, following the caps and criteria outlined in the Index methodology. The Index is rebalanced on a semi‑annual basis.