The ARMR ETF was launched in October 2024 as issuer strived to get a foothold on the local market in this growing sector. The Fund aims to track the VettaFi Global Defence Leaders Index. It’s also fairly small with a market cap of ~$175mn, but again liquidity is fine due to the underlying stocks held, the cost of the ETF comes in at 0.55% pa. Tracking has been solid with year-to-date with the ETF up +44.1% while the index is up +43.8%.
- From a regional perspective the ETFs five main exposures are 62% the US, 11% France, 9% Germany, 8% the UK, and 3% South Korea.
- The ETF holds 51 stocks with its 5 largest holdings Palantir Tech 9%, RTX Corp 8%, General Dynamics 8%, Safran 8%, and Northrop 8%.
The ARMR ETF offers broad, lower-cost exposure to ~50 large defence companies from NATO and allied nations, making it more diversified and U.S.-heavy. Conversely, the DFND ETF is a more concentrated, slightly pricier ETF of ~30 stocks with greater weight in European and innovative defence names. Again, with the defence sector having run fairly hard through 2025, we wouldn’t be chasing strength in the ARMR above $24.
- We like the risk/reward towards the ARMR ETF around the $23 area.
MM is cautiously bullish towards the ARMR ETF
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