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NATO Defence
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href="https://insights.ultumus.com/topic/bernie-thurston">bernie thurston</a> <span class="separator">,</span> <a class="topic-link" href="https://insights.ultumus.com/topic/hanetf">HANetf</a> <span class="separator">,</span> <a class="topic-link" href="https://insights.ultumus.com/topic/nato">nato</a> </p> <!--<p>Featured Article</p>--> <div class="custom-post-title"><h1><span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text">NATO Defence</span></h1></div> <div class="blog-listing-wrapper style-one cell-wrapper"> <a class="blog-listing-author" href="https://insights.ultumus.com/author/bernie-thurston">By <span>Bernie Thurston</span></a> <div class="date"> July 07, 2023 </div> </div> </div> </div> </div> <div class="blog-detail-wraper"> <div class="share fixedsocailmedia-block"> <ul> <li> <a href="https://twitter.com/intent/tweet?url={url}&text={title}" class="social-twi" title="Twitter" target="_blank"> <i class="fa fa-twitter"></i> </a> </li> <li> <a href="https://www.linkedin.com/shareArticle?mini=true&url={url}&title={title}" class="social-lin" title="Linkedin" target="_blank"> <i class="fa fa-linkedin-square"></i> </a> </li> </ul> </div> <div class="container"> <div class="row-fluid"> <div class="span10 blog-post-section"> <div class="widget-type-blog_content"> <div class="blog-listing-wrapper cell-wrapper"> <div class="blog-section"> <div class="blog-post-wrapper cell-wrapper"> <div class="section post-body"> <span id="hs_cos_wrapper_post_body" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="rich_text"><div> <h1 style="font-size: 36px;"><strong>Investing in NATO Defence</strong></h1> <h2 style="font-size: 20px;"><strong><em>Tapping into Growing Security and Cybersecurity Spending</em></strong></h2> <h2><span style="font-size: 24px;"><em> </em></span></h2> <p>Defence spending is on the rise, even in countries such as Germany that are neutral. European countries are supposed to be spending 2% of GDP on defence, and even if some are falling short of this target, budgets are rising. Even before Russia invaded Ukraine, the world has been becoming a more dangerous place for some years, with more wars and conflicts, not to mention cyberattacks. According to HAN ETF, defence spending is expected to grow by 5.6% to 2027, and cybersecurity spending could grow even faster by 8.9% over the same period.</p> <p> </p> </div> <!--more--> <p> </p> <p>The Han ETF Future of Defence UCITS ETF (ticker: NATO) tracks an index created by woman-owned firm EQM Indexes: the EQM Future of Defence Index, which is based on companies getting at least half of their revenues from military aircraft, or other defence equipment, or providing cybersecurity to a NATO Plus member country. They need a market capitalization of at least USD 1 billion, and should be listed on an exchange in a NATO or NATO Plus country.</p> <p> </p> <p>NATO has 32 members, of which the latest to join was Finland, with Sweden possibly the next. NATO Plus includes NATO allies, such as Australia, New Zealand, Japan, Israel and South Korea.</p> <p> </p> <p>The ETF holdings include Europe’s largest defence contractor, BAE Systems, and Israeli defence electronics group Elbit System, as well as more diversified firms such as Thales SA of France and Rheinmetal of Germany, which serve defence and other industries. There are also quite a few US tech firms such as chipmaker Broadcom, cybersecurity groups Fortinet, Palo Alto Networks and Israeli cybersecurity specialist, Checkpoint Software, as well as Japanese IT security group Trend Micro. Investors who already have significant technology exposure might want to form a view on whether this product starts becoming too correlated with technology, and whether a more “pure play” defence strategy might be a better fit for them.</p> <p> </p> <p>Interestingly, there is an ESG screen as well.<span style="color: #0f1218; background-color: white;"> The companies invested in, “must be in compliance with United Nation Global Compact (UNGC) principles and Organisation for Economic Cooperation (OECD) Guidelines for Multinational Enterprises”.</span> <span>This should not surprise those who have investigated ESG policies in some detail. It is important here to distinguish between “controversial weapons” such as landmines and cluster munitions, which often appear on ESG exclusion lists, and many other types of weapons and defence equipment, which are permissible within most ESG policies.</span></p> <p> </p> <p>A total expense ratio of 0.49% is reasonable and mid range for this sort of product. Some other defence ETFs, such as Invesco Aerospace and Defence, have a slightly higher TER of 0.58% while the SPDR S&P 500 Aerospace and Defence ETF has a slightly lower TER of 0.35%.</p> <p> </p> <p><span style="font-size: 11px;">.</span></p></span> </div> </div> </div> <div class="blog-section"> <div class="blog-listing-wrapper cell-wrapper"> <div class="post-listing"> </div> <div class="blog-pagination"> <a class="all-posts-link" href="https://insights.ultumus.com">All posts</a> </div> </div> </div> </div> </div> <div class="author-detail-wrap"> <div class="author-detail"> <div class="author-header"> <h6>About Author</h6> </div> <div class="image"> <div class="hs-author-avatar" style="background-image: url(https://insights.ultumus.com/hubfs/BT.png);"></div> </div> <div class="author-description"> <a class="author-link" href="https://insights.ultumus.com/author/bernie-thurston">Bernie Thurston</a> <p>Bernie loves data. Fortunately for him, London’s finance industry has been indulgent, providing him lots of benchmark data to play with and enjoy. Bernie’s journey began at Sky, where he designed the first interactive television and helped build a technical-based charity (ctt.org). He then hopped over to finance, and soon found himself at a start-up working on dividends and derivatives. Then, by nature of the fact that finance and technology have rapidly conjoined, he found himself working with Credit Suisse to build an index aggregation and distribution platform. Markit then acquired the start-up and Bernie battled his way up the greasy pole becoming the Managing Director of Markit’s equities division, with responsibility for index, ETF and Dividends. But the siren song of startups called once more. And Bernie was headhunted to rescue a failing index business. Over five years, he helped reverse the fortunes of DeltaOne Solutions, turning into a fighting force. So successful was the turn around that Markit came along and acquired this company as well. But Bernie still loved start-ups. To that end, he founded Ultumus, an ETF and benchmark data company. Ultumus aims to provide the best data in the most timely and consumable manner possible. With clients on both buy and sell side, when something happens in the index or ETF industry, Ultumus is the first to know.</p> <div class="blog-post-social-wrap"> <a href="https://www.ultumus.com/" target="_blank" class="hs-author-social-link hs-social-website"> <i class="fa fa-globe" aria-hidden="true"></i> </a> <a href="https://www.linkedin.com/in/bernie-thurston-a9539a5/" target="_blank" class="hs-author-social-link hs-social-linkedin"> <i class="fa fa-linkedin" aria-hidden="true"></i> </a> </div> </div> </div> </div> <div class="related-posts-wrap"> <div class="related-posts"> <h5>You might also like</h5> <div class="related-post-item"> <div class="related-image"><img src="https://insights.ultumus.com/hubfs/Screenshot%202024-03-22%20at%2008.57.34.png" alt="Magic 8 News"></div> <div class="related-title"><a href="https://insights.ultumus.com/magic8">Magic 8 News</a></div> <div class="post-date"> July 07, 2023 </div> </div> <div class="related-post-item"> <div 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