EUAD vs. WDEF: Which ETF Is Best for a New Era of European Defense Spending?
Active investors have taken note of the outperformance of international stocks, particularly European equities, in 2025. As of October 6, global ex-U.S. markets have surged 29.2% year-to-date, dwarfing the S&P 500's 15.6% gain. European ETFs are leading this charge, with the top three US-listed funds beating the S&P 500 by significant margins.
The resurgence stems from a long-overdue expansion in European defense budgets, propelling the industrial sector—especially aerospace and defense stocks—to the forefront. While broad-based Europe ETFs offer exposure, their diversified nature dilutes the defense theme. Stock picking, meanwhile, carries idiosyncratic risks. The EUAD and WDEF ETFs present targeted solutions for investors seeking pure-play European defense exposure.
