***HANetf has announced the launch of Future of US Defence UCITS ETF (ticker: GIJO).***
The ETF aims to provide exposure to US companies benefiting from the world’s largest defence market, as America increases spending and accelerates investment in next-generation military capability.
The firm writes that the US remains the world’s largest defence spender and the cornerstone of NATO’s military capability. The next phase of defence investment is increasingly focused on modern warfare, with priorities spanning autonomous systems, artificial intelligence, space, missile defence, advanced munitions, and counter-drone technologies.
“The proposed FY2027 Department of War budget request highlights the scale of this shift, with approximately USD1.45 trillion in total budgetary resources, up from around USD1 trillion in FY2026. Procurement is a key driver of growth, with spending proposed to reach USD413.1 billion – an increase of 88.5 per cent year-on-year (YoY).
“Procurement increases YoY are expected across every major service branch, including:
• Army: +100.7 per cent
• Navy and Marine Corps: +49.4 per cent
• Air Force and Space Force: +37.6 per cent
“Defence-wide programmes, including missile defence, drones, autonomy and AI-enabled systems, are set to see some of the largest increases, reflecting the changing nature of the modern battlefield.
“At the same time, the Pentagon is looking beyond the traditional defence primes, with a focus on expanding the industrial base, increasing production capacity and bringing more companies into the defence supply chain. The ETF’s index is designed to capture this shift, with a 5 per cent cap on each company, allowing greater representation of US small- and mid-cap defence companies.”
Hector McNeil, Co-Founder and Co-CEO of HANetf, says: “We are delighted to be launching the Future of US Defence UCITS ETF (ticker: GIJO), providing investors with targeted exposure to the companies supporting the next phase of US defence modernisation. The defence landscape is evolving rapidly, with governments investing not only in traditional military platforms, but also in emerging capabilities such as autonomous systems, artificial intelligence, space technologies, and advanced defence infrastructure. GIJO is designed to capture this broader opportunity, bringing together established defence leaders and companies across the wider defence technology ecosystem.
“HANetf has established deep expertise in the defence sector, with eight defence ETFs in its range – the largest offering in Europe. We have seen first-hand the growing investor demand for these strategies, alongside a broader recognition that sustained investment in defence capabilities is essential to supporting long-term security.”