VanEck Global Defence ETF (DFND) — Review & Analysis

DFND is the largest defence ETF on the ASX with AUM of $286.25 million as at May 2026, launched on 12 September 2024. The fund tracks a global defence and aerospace basket with 0.65% p.a. management fee. What separates DFND from the other two defence options is geographic balance — only 51.6% of the portfolio is US-listed, with the remaining 48% spread across South Korea (10.7%), France (9.7%), Italy (7.1%), Israel (5.9%), Sweden (5.8%), Germany (3.2%) and the UK (3.1%). Compare DFND across the full defence cohort on our defence and aerospace ETF page.

That European and Asian weighting is the defining feature of DFND's structure. Top holdings include RTX Corp (7.95%), France's Thales (7.64%), Italy's Leonardo (6.87%), South Korea's Hanwha Aerospace (6.61%) and Sweden's Saab (6.51%) — five of the top six holdings are non-US defence majors. That's a fundamentally different exposure to ARMR, which is dominated by traditional US primes (Lockheed Martin, Northrop Grumman, Raytheon, General Dynamics), and to DTEC, which tilts toward defence technology and software.

DFND's structure has thesis appeal during periods of rising European defence spending. The combined NATO commitment to lift defence budgets toward and beyond 2% of GDP — accelerated by the Russia-Ukraine conflict and broader European rearmament — disproportionately benefits the European defence primes that DFND overweights. Thales, Leonardo, Saab, Rheinmetall and BAE Systems are the direct beneficiaries of European procurement, where US suppliers face stricter sovereign-supply restrictions. South Korea's Hanwha also captures the rapid global expansion of Korean defence exports, particularly into Eastern Europe and the Middle East.

DFND also includes Palantir Technologies (5.06%) and Elbit Systems (Israeli electronics, 4.83%), giving it some exposure to defence-tech and intelligence software alongside the traditional aerospace and platform manufacturers. The fund is unhedged for currency, so AUD/USD, AUD/EUR and AUD/KRW movements all influence returns. For investors choosing between the three defence ETFs, our every theme ETF on the ASX guide covers how thematic funds compare across fees, performance and construction.