ETF Defense: the best choices in 2024
The defense is a crucial sector for many countries that invest considerable resources to guarantee their security and sovereignty. In this respect, the defense companies often have important contracts And strong relationships with governments. Additionally, due to the strategic and sensitive nature of this industry, defense companies generally have high barriers to entry, which can make them potentially attractive to investors seeking long-term growth opportunities.
- Defence ETFs make it possible to diversify and stabilize portfolios by investing in companies in the defence sector.
- The choice of appropriate defense ETFs depends on the investment objectives and the level of risk desired by the investor.
Why invest in defence
In 2024, the defense sector represents a investment opportunity interesting for investors. Defence is a crucial area for the security and stability of a country. Investing in defence ETFs helps to contribute to the development and strengthening of military capabilities, while taking advantage of the growth of the sector.
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Investors can benefit from regular income and diversification of their portfolio by investing in companies in the defence sector. These businesses generally present a constant demand of their products and services due to the need to maintain a high level of security in an increasingly uncertain world.
The defense sector encompasses a variety of industries, from military equipment production up to businesses from surveillance And of security, as well as the manufacturers of weapons and war vehicles. By investing in defense, we also support technological innovation in these areas, thus helping to ensure the development of new solutions for the security of nations.
In addition, the defense sector is often less sensitive to economic fluctuations, which offers a certain level of protection for investors during periods of uncertainty.
Selecting the best Defence ETFs in 2024
TitleIsIntickerterIncome treatmentReplicationFund sizeDomiciliationEligibility for PEAHANETF Future of Defence UCITS ETFIE000OJ5TQP4ASWC 0.49% p.a. Full capitalizing 11 MirlandenonVaneck Defense UCITS ETF AIE000YYE6WK5DFEN 0.55% p.a. full capitalizing 90 Mirlandenon
How to invest in defense with ETFs
To choose a defense ETF, it's important to look at The composition of its portfolio And its past performances. Past performance is no guarantee of future results, but it can give an indication of market trends and the companies that make up the ETF. The main stocks held in a defense ETF are generally leading companies in the fields of aeronautics, electronics, cybersecurity or defense services.
When investing in a defence ETF, it is essential to keep in mind that the net asset value (NAV) of the fund and its performance may fluctuate depending on market conditions. Defence ETFs have a certain amount of risk, like all stock market investments.
Also check Eligibility for the PEA to take advantage of advantageous taxation.
In the case of defense ETFs, none of them are eligible for PEA.
Finally, it is important to regularly monitor the performance of the chosen ETF and to adapt the investment portfolio accordingly. Current and past performance data can be viewed on the websites of ETF providers or online investment platforms. In addition, management fees and brokerage commissions that can impact the net return investments made in defence ETFs.
Frequently asked questions
What are the advantages of investing in a defence ETF?
Investing in a defence ETF has several advantages. First of all, defense companies are generally considered to be Stable and less sensitive to fluctuations economical. This can provide investors with some security, even in times of economic uncertainty.
Second, ETFs allow investors to diversify their investments across multiple defense firms, reducing the risks associated with investing in a single company. Additionally, ETFs are generally less expensive than buying individual stocks, which can be an advantage for investors looking to reduce trading costs.
Finally, defense ETFs can offer investors a way to access international markets that may not be easily available through other means.
Are there aeronautical ETFs eligible for a PEA?
A PEA (Share Savings Plan) is a French securities account that allows you to invest mainly in European shares with tax advantages. ETFs eligible for PEA must include only European shares and meet certain conditions relating to market capitalization and index composition.
There are indeed aeronautical ETFs eligible for a PEA. However, the options may be limited, as most aviation ETFs invest in companies around the world and are therefore not always eligible for PEA. It is recommended that you do thorough research and consult a financial advisor to identify the aviation ETFs eligible for PEA that best fit your investment goals.
