How to Invest in the Biggest European Defense Surge in Decades

How to invest in the biggest European defense surge in decades outlines a strategic approach for U.S. investors seeking global exposure. SIPRI reports global military spending at $2.9 trillion in 2025, with Europe leading a 14% year-over-year increase from 2024 to 2025 amid NATO expansion and ongoing regional tensions. For direct European access, the Select STOXX Europe Aerospace & Defense ETF (EUAD) offers focused exposure to European defense names, charging a 0.50% expense ratio and holding about 23 positions, including Rolls-Royce, Safran, and Airbus, each representing roughly 17%–21% of the portfolio. However, EUAD’s concentration and 23-holdings limit diversification. By contrast, the Global X Defense Tech ETF (SHLD) is larger with meaningful exposure to European players but remains heavily weighted toward U.S. firms. Both funds carry a 0.50% expense ratio, with SHLD offering broader tech exposure but less regional focus. The piece notes risks around timing of defense cycles and ETF concentration while highlighting European defense as a long-term thematic under current geopolitical dynamics.