The DTEC ETF was also launched in October 2024 and tracks the Global X Defence Tech Index. This is the smallest of the three with a market cap of ~$90mn but it’s the cheapest with the cost being 0.50% pa which is attractive to cost conscious investors. Tracking not an issue here – year-to-date the ETF is up +59.2% while the index is up +58.2%.
- From a regional perspective the ETFs five main exposures are 57% the US, 9% the UK, 9% Germany, 7% South Korea, and 5% France.
- The ETF holds 43 stocks with its 5 largest holdings Palantir Tech 9%, RTX Corp 8%, Rheinmetall 8%, 7% Lockheed, and 7% BAE Systems.
The DTEC ETF tracks a highly focused index of companies driving cutting-edge military technology, making it the most thematic and concentrated of the ASX defence ETFs. This ETF has been consolidating over the last few months and we believe its gathering strength for another test on the upside.
- We like the risk/reward towards the DTEC ETF around the $16 area, or 5% lower.
MM is cautiously bullish towards the DTEC ETF
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