3 Defense ETFs to Buy as NATO Spending Hits Record Highs in 2026
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3 Defense ETFs to Buy as NATO Spending Hits Record Highs in 2026
"Global defense spending hit $2.63 trillion in 2025, up from $2.48 trillion in 2024, and the momentum is accelerating. NATO's European allies and Canada increased defense spending by 20% in 2025 compared to the prior year."
"The Global X Defense Tech ETF (NYSEARCA:SHLD) is the sharpest tool on this list for capturing the European rearmament wave. Its top 10 holdings include international and domestic defense names alongside familiar U.S. contractors."
"The fund also tilts toward defense technology rather than just defense manufacturing. Palantir Technologies accounts for roughly 6% of the portfolio, giving SHLD exposure to AI-driven battlefield intelligence and logistics software."
"Launched in September 2023, SHLD has grown quickly to $8.6 billion in assets, a sign of genuine investor demand. Performance has been strong: SHLD is up nearly 49% over the past year."
Global defense spending reached $2.63 trillion in 2025, marking a rise from $2.48 trillion in 2024. NATO's European allies and Canada increased their defense budgets by 20% in 2025, with all 31 NATO members meeting the 2% of GDP spending commitment. The Global X Defense Tech ETF (SHLD) is positioned to benefit from this trend, focusing on both domestic and international defense companies, particularly in defense technology. Launched in September 2023, SHLD has quickly amassed $8.6 billion in assets and has shown strong performance.
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