Ongoing conflicts in regions like Ukraine and the Middle East are creating uncertainty. Energy markets remain volatile, fuelling concerns about inflation. And here in Australia, cost of living pressures are at the forefront of households' minds.

When headlines are dominated by fear, it becomes harder to stay optimistic — and even harder to stay consistent with an investment plan.

Yet history suggests this is exactly when simple strategies matter most.

Markets have always climbed a wall of worry

It is easy to believe that "this time is different".

The current backdrop — geopolitical tensions, rising fuel costs, and inflation — feels uniquely challenging. But zooming out tells a very different story.

Over the past century, equity markets in both Australia and the United States have navigated:

• World wars
• Oil shocks
• Financial crises
• Pandemics
• Political instability

And yet, broad indices like the S&P/ASX All Ordinaries Index (ASX: XAO) and major US benchmarks have continued to trend higher over time.

This phenomenon is often described as the "wall of worry" — markets advancing despite a constant stream of negative news.

The key insight is simple: short-term fear is persistent, but long-term progress in businesses and economies has historically been more powerful.

The strategy that gets hardest when it matters most

Dollar-cost averaging is often described as one of the simplest ways to invest.

Invest regularly. Ignore short-term noise. Let time and compounding do the heavy lifting.

But the reality is more nuanced.

This approach becomes most difficult during market declines — precisely when it is most powerful.

When markets fall, sentiment weakens. Confidence drops. The instinct to pause or wait for clarity kicks in.

Yet those periods often produce the most attractive long-term entry points.

Buying when prices are lower sounds easy. Continuing to do so when the news cycle is negative is where discipline is tested.

A practical framework: building a core and adding conviction

One way to stay grounded through volatility is to structure a portfolio deliberately.

A commonly used approach is the core and satellite strategy — a framework that balances stability with opportunity.

The core: broad exposure that does the heavy lifting

At the centre of the portfolio sits a diversified foundation, typically built using broad-market ETFs.

For Australian investors, that often includes:

• Vanguard MSCI International Shares ETF (ASX: VGS) – exposure to around 1,500 global companies
• BetaShares Australia 200 ETF (ASX: A200) – coverage of Australia's largest listed businesses
• iShares S&P 500 ETF (ASX: IVV) – access to leading US companies
• VanEck Morningstar Wide Moat ETF (ASX: MOAT) – focused on businesses with durable competitive advantages

These types of holdings are designed to capture long-term economic growth across markets, sectors, and geographies.

They are not about chasing the next big winner. They are about participating in the broader progress of global business over time.

The satellites: targeted ideas around the edges

Around that core, investors can allocate a smaller portion to higher-conviction ideas.

This could include individual companies or thematic ETFs such as:

• BetaShares Global Cybersecurity ETF (ASX: HACK)
• VanEck Global Defence ETF (ASX: DFND)

These positions bring focus and potential upside, particularly in areas benefiting from structural tailwinds like digital security, defence spending, or large-scale technology adoption.

The key is proportion.

The core provides stability and consistency. The satellites introduce variability and opportunity.

Why this approach fits today's environment

In uncertain periods, complexity often increases.

Investors are tempted to react — shifting allocations, chasing trends, or waiting for clarity that rarely comes.

A structured approach helps cut through that noise.

• The core ensures you remain invested in long-term growth
• The satellites allow you to express views without overexposing your portfolio
• Dollar-cost averaging keeps capital flowing consistently

Importantly, this framework does not rely on predicting macro events — something even professionals struggle to do consistently.

Foolish takeaway

The current environment feels challenging, but uncertainty has always been part of investing.

Markets have moved forward through decades of conflict, inflation shocks, and economic cycles.

For investors, the real edge often comes from consistent behaviour.

Simple strategies like dollar-cost averaging, combined with a clear core and satellite structure, can help maintain that discipline.

Because in many cases, the moments that feel hardest to invest are the ones that matter most over the long term.

The post This simple ASX ETF strategy matters more than ever in today's uncertain market appeared first on The Motley Fool Australia.

For me, exchange-traded funds (ETFs) are a straightforward way to build a diversified portfolio without having to rely on picking individual stocks. 

The key is combining broad exposure with a few targeted themes that could drive returns over time.

Here's why I'd be thinking about allocating that capital evenly across these five ETFs today.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I'd start by making sure I have exposure to Asia. The Vanguard FTSE Asia Ex-Japan Shares Index ETF gives access to major economies like China, India, Taiwan, and South Korea. These regions are home to some of the fastest-growing economies in the world, and I think that long-term growth is hard to ignore.

There will always be volatility here, especially with geopolitical tensions and policy uncertainty. But over time, I think rising middle classes, urbanisation, and technological development could drive strong economic expansion.

iShares Global 100 AUD ETF (ASX: IOO)

For global blue-chip exposure, I'd look at the iShares Global 100 AUD ETF.

This ASX ETF holds some of the largest and most established companies in the world. These are businesses with strong balance sheets, global reach, and proven earnings power.

I like this as a core holding because it provides stability and diversification across industries and geographies. It's not about chasing the fastest growth, but about owning high-quality companies that can compound over time.

In a volatile environment, I think having that kind of foundation is important.

Betashares Australian Quality ETF (ASX: AQLT)

Closer to home, I'd want exposure to high-quality ASX shares.

The Betashares Australian Quality ETF focuses on businesses with strong returns on equity, solid balance sheets, and consistent earnings. In my view, those characteristics tend to hold up better during uncertain periods.

Rather than simply tracking the broader market, this ETF leans into quality, which I think can make a difference over the long term.

It also complements global exposure by ensuring part of the portfolio is invested in Australian companies with strong fundamentals.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

For growth, I'd include the BetaShares S&P/ASX Australian Technology ETF.

This ASX ETF provides exposure to a range of ASX-listed tech shares, including names that have been sold off heavily in recent periods. That volatility can be uncomfortable, but it can also create opportunities.

I think technology remains a key driver of long-term economic growth, and having some exposure to that theme makes sense. The businesses in this ETF won't all succeed, but the sector itself is likely to keep evolving and expanding.

VanEck Global Defence ETF (ASX: DFND)

Finally, I'd include a thematic allocation to defence through the VanEck Global Defence ETF.

With geopolitical tensions remaining elevated, defence spending is increasing across many parts of the world. That's not a short-term trend in my view, but something that could persist for years.

This ETF provides exposure to companies involved in defence and security, which are benefiting from that shift in government spending.

It's a more specialised investment, but I think it adds diversification and taps into a structural trend that isn't closely tied to typical economic cycles.

Foolish takeaway

This kind of $50,000 ETF portfolio blends broad market exposure with a handful of targeted growth themes.

There will be periods where some parts lag, particularly higher-growth areas like technology or emerging markets. But over time, I think this mix gives a solid foundation while still leaving room for stronger returns if those themes play out.

The post Where I'd invest $50,000 into ASX ETFs today appeared first on The Motley Fool Australia.

A new report from VanEck has shed light on the sectors that may hold up in this current environment. 

Global energy fragility 

According to VanEck, The Middle East crisis has reinforced how fragile global energy security is, particularly given Iran's role in oil production and the Strait of Hormuz chokepoint. 

As a result, investors are wondering how best to position themselves for the turmoil.

VanEck said we may be moving from a short-lived shock to a conflict that could last months, disrupting crude oil and LNG supply and affecting the energy system's core infrastructure, transport, production, and refining.

We think gold, defence, commodities and quality are structurally positioned for this environment.

Gold still a safe-haven 

VanEck said gold is supported by central bank accumulation, fiscal deterioration and geopolitical uncertainty.

Since the crisis broke out, gold has risen back above US$5,200/oz on safe-haven demand, and we think it is expected to push further.

According to the report, the structural drivers for gold, central banks accumulating at the fastest pace since Bretton Woods, US fiscal deterioration and the slow unwinding of dollar hegemony were in place before the Middle East conflict. 

The Strait of Hormuz threat, if it materialises, introduces the prospect of an inflationary oil shock on top of an already uncertain rate environment. That combination, geopolitical uncertainty plus inflation risk, is an environment in which gold has historically performed best.

For investors looking to gain exposure to gold shares, options include: 

• Vaneck Gold Bullion ETF (ASX: NUGG)
• VanEck Vectors Gold Miners ETF (ASX: GDX) – gives investors instant access to 92 of the largest and most liquid global gold mining companies.

Defence 

VanEck also noted defence spending was already in a structural upcycle; the conflict has accelerated the long-term repricing of security.

In terms of defence, if investors think long-term yields are near their highs, they could consider layering in duration, at the same time, with short-term rates rising, the yields on floating rate exposures will increase as rates rise. In addition, US Treasuries offer a potential portfolio hedge against risk-off periods and periods of rising rates.

ASX ETFs to consider in this sector include: 

• Vaneck Global Defence Etf (ASX: DFND)
• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR). 

More information on global defence ETFs can be found here.

Energy and quality 

Furthermore, demand for traditional energy has increased, and investors are once again turning to traditional resources as well as critical minerals for strategic portfolio exposures. 

In terms of quality investing: 

The uncertainty creates volatility and quality companies tend to do relatively well in these environments as investors seek companies with stronger balance sheets and stable earnings.

Real assets also tend to perform relatively well because they provide tangible, consistent cash flows and act as inflation hedges.

For investors seeking energy and quality focussed exposure: 

• VanEck Vectors Msci World Ex Australia Quality ETF (ASX: QUAL)
• VanEck Australian Resources ETF (ASX: MVR)

The post How to position your ASX portfolio in the current environment – Expert appeared first on The Motley Fool Australia.

Trying to time the market when there are shocks such as this can be a bit of a fool's game. Instead, if you believe that global instability is likely to remain high and want to take a long-term view, it's reasonable to infer that global defence spending will also remain higher than normal, and that energy prices might stay high.

On the spending front this is indeed the case with many countries around the world looking to bolster their armed forces following less confidence in global alliances.

So where does that leave investors?

On the Australian market there are some defence-specific stocks such as Austal Ltd (ASX: ASB), DroneShield Ltd (ASX: DRO) and Electro Optic Systems Ltd (ASX: EOS), but if you're looking for less volatility, the following defence ASX ETFs might be the way to go.

Global X Defence ETF (ASX: DTEC)

DTEC ETF is a fairly modestly-sized defence ETF which says in its fact sheet that global defence spending has grown at an annualised rate of 4.3% for the past 40 years.

It goes on to say:

Increasing global tensions are driving nations to boost defence spending, reflecting heightened national security concerns and a competitive push to maintain strategic advantage.

DTEC says it invests in companies "with a revenue filter' with exposure to AI, drones and cybersecurity, "capturing the future of innovation in defence".

VanEck Global Defence ETF (ASX: DFND)

DFND ETF is quite different from the previous ASX ETF, in that it specifically aims to invest in larger companies that generate at least 50% of their revenues from the defence sector.

The companies it invests in must have a market capitalisation greater than US$1 billion and a 3-month average daily trading volume of at least US$1 million.

This defence ETF has $315.4 million in net assets currently and is invested into 36 companies.

DFND says it provides, "exposure to the largest global companies involved in aerospace and defence, research and consulting, application software and electronic equipment & instruments, that are typically under-represented in benchmarks''.

Betashares Global Defence ETC (ASX: ARMR)

ARMR ETF currently has a wider remit still, providing exposure to "up to 60" global companies which derive more than 50% of their revenues from defence.

At the moment these companies include BAE Systems, Lockheed Martin, General Dynamics and Palantir Technologies.

ARMR will only invest in companies which are headquartered in NATO or NATO-allied countries.

Betashares Global Energy Companies Currency Hedged ETF (ASX: FUEL)

And finally, if you're looking for broad exposure to the energy sector, this Betashares ASX ETF provides just that, investing globally into companies including Chevron, ExxonMobil and Shell.

The post If you think global instability will persist, these ASX ETFs might be for you appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) has fallen 3.2% so far this week while the S&P 500 Index (SP: .INX) has fallen 1%. 

Yesterday was somewhat of a bloodbath for the ASX 200 which dropped 1.94%, marking for one of the worst single day drops in months. 

A new report from Global X has shed light on the sectors and subsequent ASX ETFs that investors have been flocking to amidst this heavy volatility.

Investors push further into safe-haven assets 

Gold shares have continued to be a top pick for investors, following on from last year's momentum.

Gold climbed 2% higher on Wednesday and now sits almost 78% higher than 12 months ago. 

Safe-haven assets typically maintain value even during economic uncertainty, so investors often flock to them when financial markets become volatile.

According to Global X, despite a two year rally for gold, the pace is not unprecedented. 

In 2024-26, we have observed a very constructive environment for gold, with significant geopolitical volatility, falling interest rates, a poorer economic outlook and an increasing narrative around de-dollarisation. 

The recent market volatility triggered by AI disruption in software, combined with the fresh risk of an energy shock and inflationary pressures stemming from US and Israel's attack on Iran, have added on top of that bullish environment new developments which look strikingly similar to the late 70s rally and may be the final tipping point that potentially triggers a gold supercycle in which there is sustained, strong outperformance.

Global X said in the short term, it believes markets are underpricing the risk of a dragged-out, sustained conflict in Iran, which could translate to persistently high energy prices that lead to stickier and hotter inflation and, in turn, complicate the rate path for the Federal Reserve and risk an economic downturn.

Defence and Energy also worth monitoring

Global X also reinforced that the world is increasingly operating in a Cold War framework, with sustained military modernisation across the US, Europe and parts of Asia. 

Spending is also shifting toward defence technology, including missile systems, drones, cyber and AI-enabled capability. That creates a multi-year tailwind that is less cyclical and more policy-driven than traditional industrial demand.

Additionally, energy sits at the centre of this escalation because the Middle East remains critical to global supply and Asia remains structurally dependent on Gulf flows.

It said structurally this reinforces the case for energy security, LNG infrastructure and diversified supply.

How do investors access these themes?

For investors looking for exposure to gold, some ASX ETFs to consider include: 

• Global X Physical Gold Structured (ASX:GOLD) – Mirrors the growth in the Australian dollar gold price. 
• BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) – Targets largest global gold mining companies (ex-Australia).
  
  

Energy focussed ASX ETFs to consider include: 

• The Global X Bloomberg Commodity Complex ETF (ASX: BCOM)
• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL)
  
  

For defence focussed ASX ETFs: 

• The Global X Defence Tech ETF (ASX: DTEC)
• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR)
• Vaneck Global Defence Etf (ASX: DFND). 

Foolish takeaway 

It's important to point out that despite investors pushing into these themes, there is no guarantee these sectors will rise as a direct result of current conflicts. 

Predicting how markets respond to global conflict is inherently uncertain, and short-term sector moves are often driven by sentiment as much as fundamentals. 

While capital may rotate into perceived "beneficiaries," there is no guarantee those trends will persist once conditions stabilise or new information emerges.

The post Which ASX ETFs are investors flocking to amidst volatility? appeared first on The Motley Fool Australia.

One theme that has attracted increasing attention is global defence and aerospace. 

For investors looking into that sector, there are now several ASX-listed defence ETFs.

Why global defence on the radar

Geopolitical tensions, strategic competition between major powers, and global conflicts have led to sustained increases in defence budgets across the US, Europe and parts of Asia. 

Countries are committing to multi-year procurement programs covering aircraft, missile systems, naval fleets, cybersecurity and space capabilities.

For investors, this can translate into long-duration revenue pipelines for major contractors.

This phenomenon is also happening here in Australia.

What constitutes defence?

For the average punter, a defence company might be one that manufactures weapons, military planes, navy ships etc. 

However modern defence is no longer limited to tanks and fighter jets. 

It now includes cybersecurity, artificial intelligence, satellite systems, autonomous vehicles and advanced electronics. 

Some ETFs tilt toward these next-generation technologies, giving exposure to both traditional defence primes and emerging defence-tech players.

It's also important to point out that defence contractors often operate under government contracts, which can provide relatively stable cash flows compared with cyclical sectors.

What are the best ASX defence ETFs?

For investors looking for exposure to this sector, right now there are three ASX ETFs to consider: 

• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR)
• Vaneck Global Defence Etf (ASX: DFND)
• Global X Defence Tech ETF (ASX:DTEC). 

All three are global in scope – they invest predominantly in international defence and aerospace companies.

What's the difference?

The Betashares Global Defence ETF provides exposure to 60 companies which derive more than 50% of their revenues from the development and manufacturing of military and defence equipment, as well as defence technology. 

According to Betashares, it only holds global companies headquartered in NATO member and major NATO ally countries. 

This fund has risen 38% in the last year. 

The VanEck fund targets the largest global companies involved in aerospace & defence, research & consulting, application software and electronic equipment & instruments.

It currently includes 36 holdings and has risen roughly 51.8% in the last year. 

Unlike DFND and ARMR, which focus primarily on traditional global defence contractors, The Global X DTEC fund has a stronger tilt toward defence technology and next-generation systems. 

This includes cybersecurity, AI, advanced electronics and autonomous platforms – rather than just large military hardware manufacturers.

The Global X fund is up approximately 49% in the last year. 

Key considerations 

Defence ASX ETFs are still thematic and concentrated and can be sensitive to political developments and budget cycles.

These funds also typically carry higher fees than broad index ETFs.

All three of these funds come with management fees between 0.50% p.a. and 0.65% p.a. 

Finally, it's also worth noting the ethical considerations for some investors, who may wish to target returns elsewhere, not related to global conflict and military spending. 

The post What is the best global defence ASX ETF? appeared first on The Motley Fool Australia.

Last year, we ploughed a net $53 billion of new funds into ETFs, which was 75% higher than 2024, according to Betashares data.

Here are three ASX ETFs that delivered excellent returns last year.

Global X Copper Miners ETF (ASX: WIRE)

Over 2025, WIRE ETF returned 93% and finished the year at $22.20 apiece.

This ASX ETF is having an incredible run on the back of rising global demand for the red metal.

WIRE seeks to mirror the performance of the Solactive Global Copper Miners Total Return Index before fees.

The copper price soared 42% last year and hit a new record above US$6 per pound earlier this month.

Copper is essential for electrification and is playing a huge role in the green energy transition.

WIRE holds 39 stocks and offers good geographical diversification.

Investments are 37% Canada, 11% US, 10% Australia, 10% Hong Kong, 7% Japan, 6% Poland, 5% Sweden, and the list goes on.

The ASX copper shares among WIRE's investments include the ASX 200's largest pure-play, Sandfire Resources Ltd (ASX: SFR), at 3.2%.

BHP Group Ltd (ASX: BHP), the world's largest copper producer, makes up 4% of WIRE's investments.

Capstone Copper Corp CDI (ASX: CSC) shares provide another 3%, and Develop Global Ltd (ASX: DVP) makes up 0.36%.

WA1 Resources Ltd (ASX: WA1) shares are in there, too, at 0.2%.

Vaneck Global Defence ETF (ASX: DFND)

Over 2025, DFND ETF returned 57% and closed out the year at $36.74 apiece.

DFND ETF holds 36 shares and tracks the MarketVector Global Defence Industry (AUD) Index before fees.

The top holding is Thales SA (FRA: CSF), a French company that produces advanced defence electronics and cybersecurity systems.

There's also RTX Corp (NYSE: RTX), a major US aerospace and missile systems manufacturer, and Leonardo SpA (FRA: FMNB), an Italian aerospace and defence company that builds helicopters.

DFND ETF also holds Hanwha Aerospace Co Ltd (KRX: 012450), a South Korean company that makes military aircraft engines, artillery systems, and satellites, and Saab AB (FRA: SDV1), a Swedish aerospace and defence company.

Plato Global Alpha Fund Complex ETF (ASX: PGA1)

Last year, PGA1 ETF returned 31% and finished the year at $36.74 apiece.

PGA1 aims to outperform the MSCI World Net Returns Unhedged Index by 4% per annum, after fees, over the medium to long term.

The ETF holds more than 250 shares.

Andrew Wielandt from DP Wealth Advisory holds this ASX ETF in his self-managed super fund (SMSF).

Wielandt has nearly 30 years of experience in the financial services industry.

Last November, he explained the appeal of this ASX ETF on The Bull:

The Plato Global Alpha Fund, established initially as a managed fund in September 2021, operates as a long/short exchange traded fund.

The fund is overweight in financials and defence and is underweight in materials and energy.

Contributors to its performance in the past 12 months include Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Broadcom Inc (NASDAQ: AVGO).

The price of the ETF has been steadily rising since mid-April and I like the outlook.

PGA1 ETF began trading on the ASX in November 2024.

The post 3 ASX ETFs that returned 31% to 93% in 2025 appeared first on The Motley Fool Australia.

There are other options, such as investing in defence companies such as Austal Ltd (ASX: ASB), DroneShield Ltd (ASX: DRO), and Electro Optic Systems Ltd (ASX: EOS).

But if you're looking for more diversification, there are some exchange-traded funds (ETFs) on offer which might be worth a look.

Global outlook

The first one we'll look at is the Betashares Global Defence ETF (ASX: ARMR).

This fund aims to access leading global defence companies aligned with NATO allied countries.

The ARMR website goes on to say:

ARMR provides exposure to up to 60 leading companies which derive more than 50% of their revenues from the development and manufacturing of military and defence equipment, as well as defence technology, including Lockheed Martin, BAE Systems, General Dynamics and Palantir Technologies.

The website adds that global defence and security spending has "significantly increased" in recent times due to evolving geopolitical risks, and the spend is projected to continue for the foreseeable future.

ARMR has delivered an impressive 47.84% one-year return measured at the end of December, and 29.9% over five years.

Second cab off the rank is the Van Eck Global Defence ETF (ASX: DFND).

This ETF aims to give "exposure to the largest global companies involved in aerospace & defence, research and consulting, application software and electronic equipment & instruments, that are typically under-represented in benchmarks''.

The Van Eck website adds:

DFND is likely to be appropriate for a consumer who is seeking capital growth, is intending to use the product as a minor or satellite allocation within a portfolio, has an investment timeframe of at least 5 years, and has a very high risk/return profile.

DFND is up 85.5% from its lows over the past year and is changing hands for $44.85, with the fund valued at $305.3 million.

Another solid performer is the Global X Defence Tech ETF (ASX: DTEC), which "provides investors with access to companies at the forefront of defence innovation''.

The website goes on to say:

As global security concerns shift towards more technology-driven solutions, DTEC captures the sectors driving the future of defence. This includes AI, drones, and cybersecurity – all crucial components in today's modern defence landscape.

DTEC is up 88.4% from its lows over the past year, with the fund valued at $128.5 million.

Then, finally, there is the Betashares Global Cybersecurity ETF (ASX: HACK), which, as the name suggests, aims to give exposure to the best cybersecurity companies globally.

As the Betashares website explains:

With cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. In one trade, get diversified, cost-effective exposure to global cybersecurity companies, a sector that is heavily under-represented on the ASX.

Hack hasn't performed as well as the other defence ETFs and has been trending lower in recent months. That said, it's still up 15.1% from its low point over the past 12 months and, over a three-year horizon, has returned 23.5% per annum.

The post Where to invest as global tensions rise? These ETFs might be worth a look appeared first on The Motley Fool Australia.

This led to many listed defence companies in aerospace, technology, and military equipment segments gaining major value in 2025.

Sara Pineros, a Quantitative Analyst at S&P Dow Jones Indices, said:

Aerospace & Defence ranked as the second-highest growth sector among the S&P Select Industries, posting a significant 46.8% increase, largely driven by rising geopolitical tensions worldwide.

Three ASX exchange-traded funds (ETFs) capturing this theme were launched in late 2024.

Here's how they performed last year.

2025 performance: 3 ASX defence ETFs

Vaneck Global Defence ETF (ASX: DFND)

Over 2025, DFND ETF delivered a capital gain of 56% and closed the year at $36.74 apiece.

With dividends included, this ASX ETF gave a total return of 57%.

DFND ETF holds just 36 shares and tracks the MarketVector Global Defence Industry (AUD) Index before fees.

The top five holdings are Thales SA, RTX Corp, Leonardo SpA, Hanwha Aerospace Co Ltd, and Saab AB.

Thales is a French company that produces advanced defence electronics and cybersecurity systems.

RTX is a major US aerospace and missile systems manufacturer.

Leonardo is an Italian aerospace and defence company that makes helicopters.

Hanwha Aerospace is a South Korean company that makes military aircraft engines, artillery systems, and satellites.

Saab AB is a Swedish aerospace and defence company.

The DFND ETF is $44.30 per unit, up 1.8% on Tuesday.

It has a management fee of 0.65% per annum.

Global X Defence Tech ETF (ASX: DTEC)

Over 2025, DTEC ETF ripped 64% to $17.51 apiece and did not pay a dividend.

ASX DTEC invests in 37 shares and seeks to mirror the Global X Defense Tech Index before fees.

Global X explains DTEC's differentiation from other ASX defence ETFs:

DTEC includes companies with a revenue filter ensuring exposure to AI, drones, and cybersecurity, capturing the future of innovation in defence.

The top five holdings are Lockheed Martin Corp, Rheinmetall AG, RTX Corp, Palantir Technologies Inc, and General Dynamics Corp.

Lockheed Martin builds air force fighter jets, missiles, and satellite systems.

Rheinmetall manufactures army tanks, weapons, and military vehicle systems.

Palantir is an AI and defence software company specialising in data analytics for government and defence industry clients.

General Dynamics builds submarines, combat vehicles, and provides defence IT services.

The DTEC ETF is $20.53 per unit, up 1.7% today.

The annual management fee is 0.5%.

Betashares Global Defence ETF (ASX: ARMR)

Over 2025, ARMR ETF soared 44% to $17.51 apiece and gave a total return of 48%.

ASX ARMR invests in up to 60 companies headquartered in NATO nations or allied countries, such as Australia, Japan, and South Korea.

It tracks the VettaFi Global Defence Leaders Index before fees.

The top five holdings are Lockheed Martin Corp, Rheinmetall AG, Raytheon Technologies Corp, Safran SA, and General Dynamics Corp.

Raytheon Technologies manufactures missiles, radar systems, and aerospace technology.

Safran builds aircraft engines and defence navigation systems.

Today, this ASX ETF is trading at $28.44 per unit, up 2.7%.

The yearly management fee is 0.55%.

The post Which ASX defence ETF performed best in 2025? appeared first on The Motley Fool Australia.

In early 2026, defence-focused investments are back in the spotlight as geopolitical tensions persist and governments commit to unprecedented military budgets. For Australian investors, this has renewed attention on ASX ETFs offering diversified exposure to global defence contractors and military technology leaders.

Two powerful forces are driving this trend.

A world that feels less stable, not more

Despite hopes that the post-pandemic era would bring a more cooperative global environment, reality has moved in the opposite direction.

Cold and hot conflicts continue across Eastern Europe, the Middle East, and Asia-Pacific flashpoints. Meanwhile, major powers including the United States, China, and Japan are actively modernising their military capabilities. Smaller nations are following suit, often under pressure to meet alliance commitments or defend strategic interests.

This environment is pushing defence spending higher — not just as a short-term response, but as part of long-term strategic planning. Governments are investing in missile defence, cybersecurity, autonomous systems, surveillance technology, naval assets, and aerospace platforms. These are multi-decade programs, not one-off purchases.

For investors, that matters. Defence companies often benefit from long contracts, recurring revenue, and government-backed demand that is less sensitive to economic cycles.

A $1.5 trillion signal from the White House

That long-term trend was given fresh momentum this week.

US President Donald Trump announced plans to lift America's military budget by 50% to approximately US$1.5 trillion by 2027, citing global instability and the need to maintain strategic superiority.

To put that number into perspective, it would represent the largest defence budget in history — comfortably exceeding the combined military spending of several major nations.

Markets did not ignore the signal. Global defence stocks rallied sharply following the announcement, with many companies hitting new highs in early 2026. The message was clear: defence spending is not peaking — it is accelerating.

Given the size of the US defence ecosystem, higher American spending tends to flow through supply chains globally, benefiting contractors, subcontractors, and technology providers across multiple regions.

Why these ASX ETFs are in focus

Rather than taking a punt on individual defence stocks, many investors have gravitated toward ASX ETFs that offer broad, rules-based exposure to the global defence supply chain.

Two in particular have stood out.

The VanEck Global Defence ETF (ASX: DFND) has surged more than 75% over the past 12 months, excluding dividends. DFND has a heavier weighting toward US and European defence primes and advanced technology providers, reflecting where the bulk of global defence spending is flowing. Its portfolio includes exposure across missile systems, aerospace, intelligence software, and next-generation defence platforms, with a strong tilt toward companies embedded in long-term NATO and allied procurement programs.

By contrast, the Betashares Global Defence ETF (ASX: ARMR) — up over 60% in the past year, excluding dividends — takes a slightly broader approach. While it also holds many of the world's largest aerospace and defence contractors, ARMR's construction places more emphasis on diversified military hardware and infrastructure suppliers, offering exposure across traditional defence manufacturing alongside newer areas such as surveillance, communications, and security technology.

Not without risks, but supported by structural demand

As with any thematic investment, defence is not risk-free. Valuations across the sector have risen, and political sentiment can shift over time. Defence companies also operate in an environment where delays, cost overruns, or policy changes can impact earnings.

However, the structural backdrop remains supportive. Governments rarely slash defence spending during uncertain times, and modern warfare increasingly relies on advanced technology rather than manpower alone. That trend favours ongoing investment, not retrenchment.

Foolish Takeaway

AI may still command the spotlight, but defence spending is shaping up as one of the most durable investment themes of the decade.

With global tensions unresolved and the world's largest economy preparing to spend US$1.5 trillion on its military, the tailwinds behind defence-focused ETFs look set to persist well beyond 2026.

For investors seeking diversified exposure to this powerful megatrend, defence ETFs remain firmly on the radar.

The post Forget AI – these ASX ETFs are riding a global megatrend with years of tailwinds ahead appeared first on The Motley Fool Australia.

Here are three options for Australian investors to consider.

ASX ETFs leveraging rising global defence spending

Vaneck Global Defence ETF (ASX: DFND)

The DFND ETF is $39.18 per unit, up 0.6% on Thursday.

Since inception on 10 September last year, this ASX ETF has delivered an average annual total return of 92%.

DFND ETF holds just 32 shares and seeks to mirror the performance of the MarketVector Global Defence Industry (AUD) Index.

The top five holdings are RTX Corp, Palantir Technologies Inc, Thales SA, Leonardo SpA, and Hanwha Aerospace Co Ltd.

RTX is a significant United States aerospace and missile systems manufacturer.

US-based Palantir is an AI and defence software company specialising in data analytics for government and defence industry customers.

Leonardo is an Italian aerospace and defence company that makes helicopters.

Thales is a French multinational company that produces advanced defence electronics and cybersecurity systems.

Hanwha Aerospace is a South Korean company that makes military aircraft engines, artillery systems, and satellites.

This ASX ETF pays dividends (or 'distributions') once per year.

DFND ETF paid its first dividend of 3 cents per unit in July.

The management fee is 0.65% per annum.

Global X Defence Tech ETF (ASX: DTEC)

The DTEC ETF is $18.54 per unit, up 0.5% today.

Since inception on 7 October last year, this ASX ETF has delivered an average annual total return of 79%.

ASX DTEC is a defence technology-focused ETF. It's invested in 37 shares and tracks the Global X Defense Tech Index before fees.

In an article, Global X said:

We believe the global defence industry is entering a super-cycle, shaped by geopolitical urgency and a structural pivot toward technology-first military capabilities. 

Currently, the top five holdings are Palantir, RTX Corp, Rheinmetall AG, Lockheed Martin Corp, and BAE Systems PLC.

Rheinmetall manufactures army tanks, weapons, and military vehicle systems.

BAE Systems builds navy ships and develops combat systems and cyber defence technologies.

Lockheed Martin builds air force fighter jets, missiles, and satellite systems.

The DTEC ETF did not pay a distribution in its first year of trading.

The annual management fee is 0.5%.

Betashares Global Defence ETF (ASX: ARMR)

The ARMR ETF is $25.90 per unit, up 1.3% today.

Since inception on 2 October last year, this ASX ETF has delivered an average annual total return of 77%.

ASX ARMR invests in 52 companies headquartered in NATO nations or allied countries, and tracks the VettaFi Global Defence Leaders Index before fees.

Currently, the top five holdings are Palantir, Raytheon Technologies Corp, Safran SA, General Dynamics Corp, and Lockheed Martin Corp,

Raytheon Technologies manufactures missiles, radar systems, and aerospace technology.

Safran builds aircraft engines and defence navigation systems.

General Dynamics builds submarines, combat vehicles, and provides defence IT services.

The ARMR ETF pays one dividend per year.

ARMR ETF paid its first dividend of 53.546615 cents per unit in July.

The yearly management fee is 0.55%.

The post 3 ASX ETFs exposed to the global defence megatrend appeared first on The Motley Fool Australia.

The ASX 200 is up around 9.7% over the past 12 months. That's almost perfectly in line with the long-term average annual return of roughly 9.3%.

Of course, markets never move in straight lines. Some years surge ahead, others pull back, and over time, it all averages out. So rather than trying to predict where the ASX 200 will end up next year, I prefer to look for areas of the market where powerful tailwinds could create a little extra lift.

Two sectors currently stand out: defence and small caps.

The global re-arming cycle

Defence spending is rising across the world, and not just because of ongoing conflicts or geopolitical tensions. Nations are also modernising their military technology, replacing ageing fleets of aircraft, vehicles, and equipment in what is effectively a decades-long upgrade cycle. 

NATO members recently agreed to increase collective defence spending to 5% of GDP by 2035, a significant step up from the long-standing 2% benchmark set in 2014.

Closer to home, Australia unveiled an additional $50.3 billion investment in the Australian Defence Force earlier this year as part of its new long-term strategy.

And in Asia, Japan's incoming Prime Minister Sanae Takaichi has fast-tracked the nation's goal of reaching 2% of GDP in defence spending, bringing the target forward by two years to 2026.

This means trillions of dollars will continue flowing to companies that design and supply advanced defence systems — from drones and radar to AI-enhanced surveillance and electronic countermeasures — over the coming decade.

On the ASX, DroneShield Ltd (ASX: DRO) and Electro Optic Systems Holdings Ltd (ASX: EOS) have already demonstrated the sector's potential. Their share prices have jumped as swelling global defence budgets translate directly into rising orders, stronger revenues, and renewed investor confidence.

However, defence is not just a local story. Investors seeking diversified exposure might consider ETFs such as the VanEck Global Defence ETF (ASX: DFND) or the Betashares Global Defence ETF (ASX: ARMR). These provide access to global giants like Lockheed Martin, BAE Systems, and RTX Corp — companies building the next generation of defence hardware and software.

The long-term trend looks powerful. Even so, valuation risks are worth keeping in mind after such sharp rallies. A diversified approach could be a safer way to participate in the global re-arming cycle.

Growth and recovery potential

At the opposite end of the market, smaller companies could also shine in 2026.

The S&P/ASX Small Ordinaries Index (ASX: XSO) has surged nearly 22% this year, outpacing the ASX 200's 9.7% gain. That's a sharp turnaround after years of underperformance.

Why the rebound?

Smaller businesses tend to respond faster to improving conditions, and with the Reserve Bank expected to ease rates in 2026, lower borrowing costs could provide a strong tailwind. Many small caps are also trading at more attractive valuations compared to large, fully-priced blue chips.

For investors who prefer a diversified approach, the VanEck MSCI International Small Companies Quality ETF (ASX: QSML) focuses on 150 of the world's highest-quality small businesses. These companies are screened for high returns on equity, stable earnings, and low financial leverage, the kind of financial discipline that has historically led to long-term positive performance.

Foolish Takeaway

There's no guaranteed way to beat the market. Even the most talented investors experience stretches where they don't outperform the ASX 200's average return.

Still, identifying structural trends — like defence modernisation or small-cap recovery — can help investors build a satellite portfolio around a diversified core.

Whether through individual shares or ETFs, these two areas offer fascinating potential for those willing to think a little beyond the benchmark. Just remember: outperformance is possible — it's just never easy.

The post 2 sectors I think could outperform the ASX 200 in 2026 appeared first on The Motley Fool Australia.

Let's check them out.

Video Games and Esports ETF (ASX: GAME)

The GAME ETF is trading at $20.38 per unit, up 0.89% on Tuesday and up 80% over the past 12 months.

As you might have guessed, GAME ETF is leveraging the worldwide video gaming craze to deliver outstanding returns for investors.

The GAME ETF is invested in 37 shares and tracks the Nasdaq CTA Global Video Games & Esports Index.

The bulk of its investments are in interactive home entertainment devices and facilities, with seven in 10 dollars allocated here.

Other major allocations are application software (15% of funds) and interactive media and services (8% of funds).

The US is the biggest geographic exposure at 40%, followed by Japan at 31%, China at 19%, and South Korea at 6%.

The GAME ETF pays dividends (called 'distributions') once a year.

The management fee is 0.57% per annum.

Since GAME's inception in February 2022, this ASX ETF has produced an average total annual return of 17%.

Vaneck Global Defence ETF (ASX: DFND)

The DFND ETF is $39.17 per unit, down 0.03% today and up 83% over the past 12 months.

VanEck launched the DFND ETF in September last year amid a significant rise in global defence spending.

US President Donald Trump has been pressuring nations around the world, including Australia, to bump up military investment amid ongoing aggression from Russia in Ukraine, and China's increased assertiveness and ambitions to reclaim Taiwan as part of its empire.

Research shows global defence spending totalled US$2.46 trillion last year compared to US$2 trillion in 2022.

Back in June, the 32 nations of NATO got together and agreed to President Trump's request to increase defence spending to 5% of gross domestic production over the next 10 years. That's a massive increase from the 2% of GDP that NATO is spending now.

This ASX ETF holds 32 shares and tracks the MarketVector Global Defence Industry (AUD) Index.

More than 70% of funds are invested in aerospace and defence systems. Other major allocations are professional services at 15%, software at 8%, and machinery at 5%.

The US dominates the geographic exposure with almost one in every two dollars of DFND's investment funds parked there.

Other major allocations include South Korea at 12%, France at 10%, Italy at 8%, and Sweden at 6%.

The DFND ETF pays distributions once per year.

The management fee is 0.65% per annum.

Since its inception in September 2024, this ASX ETF has delivered an average total annual return of 93%.

The post 2 ASX ETFs that have risen 80% in just one year appeared first on The Motley Fool Australia.

ASX defence stocks storm higher

Over the past month alone, DroneShield Ltd (ASX: DRO) shares have jumped 76.99% to $5.77 per share, at the time of writing. For the year, the counter-drone technology company's share price is 394.83% higher.

Although DroneShield's success story is in a league of its own, many other ASX-listed defence stocks have seen their share price storm higher this year.

Electro Optic Systems Hldgs Ltd (ASX: EOS) has been another strong performer this year. While the share price has fallen 4.33% to $7.00 a piece over the past month, the decline has barely dented its 335.4% hike over the past 12 months. 

Meanwhile, the Titomic Ltd (ASX: TTT) share price has climbed 12.96% over the past month and is now 117.86% higher for the year. At the time of writing, the Titomic share price is 30 cents per share.

Australian-based global shipbuilding company Austal Ltd (ASX: ASB) has seen its share price drop 12.47% to $7.03 a piece over the past four weeks, at the time of writing. Over the year, it is still 130.49% higher. 

The Vaneck Global Defence ETF (ASX: DFND) share price has climbed 5.91% over the past month. It is now 82.52% higher than this time last year. At the time of writing, it is trading at $39.06 per share. 

At the time of writing, the Betashares Global Defence ETF (ASX: ARMR) is $26.07 a piece, up 1.47% over the month and 67.44% over the year.

It's clear that shares in the sector are gaining significant traction, but the real question is: why the sudden surge in popularity?

Why are these stocks gaining momentum?

There are a few reasons, but the key one is the ongoing geopolitical uncertainty. Heightened global tensions and increasing risk are mostly related to trade relationships.

For example, US President Trump's trade tariffs are set to cause global trade tensions and disrupt supply and demand chains around the world. Elsewhere, China is the largest direct geopolitical risk for Australia. This is because it is both our largest trading partner and our largest competitor. Australia is also at risk of being dragged into tensions in the Indo-Pacific region. Any disruption would affect trade routes and even defence assets.

In turn, these geopolitical risks push governments to spend more on their defence sector. This includes development of technology such as drones, AI or electronic warfare. It also includes equipment such as missiles or submarines. 

Earlier this year, the Australian Government announced it would invest an additional $50.3 billion into the Australian Defence Force. 

It's a significant allocation of Government funds, and it is likely to create a reliable and long-term revenue for companies in the defence sector. And of course, a reliable income is beneficial for investors.

Can we expect ASX defence shares to keep climbing?

Analysts think so.

Earlier this month, Bell Potter listed Droneshield shares as one of its best buys. The broker commented that the ASX stock is in a strong position in a booming industry. 

The broker has also recently updated its price guidance on EOS shares to $11.20, which represents a potential 60% upside for investors at the time of writing. Bell Potter also sees a potential 66.7% upside for Titomic shares over the next 12 months, to 50 cents per share.

Meanwhile, Macquarie has a $7.95 target price and a neutral rating on Austal shares, which represents a potential 13.1% upside over the next 12 months, as of the time of writing.

The DFND and ARMR ETFs were also recently highlighted by fellow Fool writer Leigh Gant as top defence ETF options for investors.

Both ETFs are designed to focus exclusively on companies headquartered in NATO or allied nations. This means investors can get access to businesses in the core global defence supply chain. 

This includes traditional hardware, like fighter jets, submarines, and missile systems, as well as advanced software, space technologies, and next-generation intelligence platforms.

The post Why are ASX defence stocks so hot right now? appeared first on The Motley Fool Australia.

Defence spending has emerged as a long-term global investment theme given tensions involving Russia, China, and the Middle East.

Last year saw the largest annual increase in defence spending since the end of the Cold War, according to the Stockholm International Peace and Research Institute.

ASX ETF provider, Betashares, commented on the trend:

Global defence and security spending has significantly accelerated in response to evolving geopolitical risks, technological advancements, and the growing complexity of modern threats.

This is projected to continue for the foreseeable future as nations seek to strengthen their strategic defences.

Global X ETFs said defence "has been a sleepy corner of the market" for decades, with predictable budgets, legacy contractors, and little innovation.

"That era is rapidly coming to an end," the ETF issuer said.

3 ASX ETFs that have skyrocketed since inception last year

These three ASX ETFs aim to capitalise on the global trend of massively higher defence spending by investing in different portfolios of listed military, defence, and technology companies.

Let's check them out.

Vaneck Global Defence ETF (ASX: DFND)

The DFND ETF is $39.91 per unit, down 1.8% on Friday.

Since inception on 10 September last year, this ASX ETF has delivered an average annual total return of 91.7%.

DFND ETF holds 32 shares and tracks the MarketVector Global Defence Industry (AUD) Index. It has $281.3 million in net assets.

The top five holdings are Thales SA, Palantir Technologies Inc, Leonardo SpA, RTX Corp, and Hanwha Aerospace Co Ltd.

Top sector allocations are aerospace and defence (71%), professional services (15%), software (8%), and machinery (5%).

The geographic allocation is 49% US, 12% South Korea, 10% France, 8% Italy, 6% Sweden, and 5% Germany.

The ASX ETF pays dividends (called 'distributions' with ETFs) once per year.

DFND ETF paid its first dividend of 3 cents per unit in July.

The management fee is 0.65% per annum.

Global X Defence Tech ETF (ASX: DTEC)

The DTEC ETF is $19.11 per unit, down 1.3% today.

Since inception on 7 October last year, this ASX ETF has delivered an average annual total return of 90.8%.

The DTEC ETF is focused on tech-driven defence, and uses a revenue filter to ensure exposure to AI, drones, and cybersecurity.

The ETF currently holds 37 shares and tracks the Global X Defense Tech Index. It has $111 million in net assets.

Currently, the top five holdings are Palantir, Rheinmetall AG, RTX Corp, BAE Systems PLC, and Lockheed Martin Corp.

The top industry allocations are aerospace and defence (79%), software (9%), professional services (7%), and electronic equipment (1%).

Geographic exposure includes the US (57%), Britain (10%), Germany (7%), South Korea (7%), Italy (4%), and Sweden (4%).

The DTEC ETF did not pay a distribution in its first year of trading.

The yearly management fee is 0.5%.

In recent commentary, Global X said global defence was "entering a super-cycle" with a structural pivot toward tech-first capabilities.

The provider said:

Nations worldwide are rapidly moving beyond traditional weapons systems, investing heavily in autonomous platforms, AI-powered command and control systems, and sophisticated cyber defence architectures engineered for speed, precision, and adaptability.

But the more significant shift lies not in the scale of spending, but in its direction. Procurement is shifting decisively toward tech-enabled solutions and battlefield AI, marking a generational overhaul of global defence infrastructure.

Betashares Global Defence ETF (ASX: ARMR)

The ARMR ETF is $26.49 per unit, down 0.9% today.

Since inception on 2 October last year, this ASX ETF has delivered an average annual total return of 76.8%.

The ARMR ETF invests in companies that make more than 50% of their revenue from the development and manufacturing of military and defence equipment, as well as defence technology.

A key point of difference with ARMR is that it only invests in global companies headquartered in NATO member and major ally countries.

That's handy, given that the 32 NATO nations have just committed to raising their defence spending from 2% to 5% of GDP over the next decade.

The ETF currently holds 52 shares and tracks the VettaFi Global Defence Leaders Index (before fees). It has $216.7 million in net assets.

Currently, the top five holdings are Palantir, Lockheed Martin Corp, Rheinmetall AG, Safran SA, and RTX Corp.

Top industry allocations are aerospace and defence (84%), application software (9%), research and consulting services (6%), and construction and transport machinery (2%).

Geographic exposure entails the US (61%), France (11%), Germany (9.5%), Britain (8%), and South Korea (4%).

The ARMR ETF pays one dividend per year.

ARMR ETF paid its maiden dividend of 53.546615 cents per unit in July.

There is an annual management fee of 0.55%.

The post 3 ASX ETFs providing 77% to 92% average annual returns since inception just last year appeared first on The Motley Fool Australia.

In this article, we check out 3 ASX ETFs doing exactly that, and look at how they're currently performing for Aussie investors.

Video Games and Esports ETF (ASX: GAME)

The GAME ETF is $20.59 per unit, down 0.6% today but up 79% over the past 12 months.

GAME ETF seeks to capitalise on the rising popularity of gaming, with Statista data showing there are 2.7 billion gamers today.

The GAME ETF is invested in 40 shares and tracks the Nasdaq CTA Global Video Games & Esports Index.

Currently, the top holdings are NetEase, Roblox Corp, and Tencent.

Top industry allocations are interactive home entertainment (71%), application software (15%), and interactive media and services (8%).

Geographic exposure entails US 40%, Japan 31%, China 19%, and South Korea 6%.

The GAME ETF pays dividends (called 'distributions' with ETFs) once per year.

The management fee is 0.57% per annum.

Since its inception in February 2022, this ASX ETF has delivered an average annual return of 16%.

Vaneck Global Defence ETF (ASX: DFND)

The DFND ETF is $40.51 per unit, down 0.3% today but up 91% over the past 12 months.

DFND ETF is a relatively new thematic ETF that was launched just over a year ago.

It seeks to capitalise on the global defence spending theme via a portfolio of listed global military and defence companies.

Amid escalating tensions worldwide, the Stockholm International Peace and Research Institute says 2024 saw the largest annual increase in defence spending since the end of the Cold War.

Exemplifying this trend, the 32 nations in NATO committed to more than doubling their defence spending from 2% to 5% of GDP over 10 years just a few months ago.

This ASX ETF holds 29 shares and tracks the MarketVector Global Defence Industry (AUD) Index.

The top five holdings are Thales SA, RTX Corp, Leonardo SpA, Palantir Technologies Inc, and Hanwha Aerospace Co Ltd.

Top sector allocations are aerospace and defence (71%), professional services (15%), software (8%), and machinery (5%).

The geographic allocation is 49% US, 12% South Korea, 10% France, 8% Italy, 6% Sweden, and 5% Germany.

The ASX ETF pays distributions once per year.

The management fee is 0.65% per annum.

Since its inception in September 2024, DFND ETF's total returns have averaged 92% per annum.

Global Cybersecurity ETF (ASX: HACK)

The HACK ETF is $15.45 per unit, down 0.25% on Tuesday but up 29% over the past 12 months.

The HACK ETF seeks to capitalise on rocketing demand for cybersecurity services across the world.

Cybersecurity is enormously important amid increasing data breaches, scams, and cyber hacks.

Millions of Australians were affected by cyber attacks on Optus, Qantas Airways Ltd (ASX: QAN), and Medibank Private Ltd (ASX: MPL).

Just today, we learned of an email scam involving the University of Western Sydney.

HACK provides exposure to 32 shares and tracks the Nasdaq Consumer Technology Association Cybersecurity Index.

Currently, the top holdings are Broadcom, Cisco Systems, and Palo Alto Networks.

Top allocations are systems software companies (44%), communications equipment (13%), and internet services and infrastructure (11%).

The geographic exposure is 81% US, 7% India, 3.5% Israel, and 3% France.

The ASX ETF pays distributions twice per year in January and July.

The management fee is 0.57% per annum, and there is a 0.1% expenses ratio.

Since its inception in August 2016, the HACK ETF has delivered an average total annual return of 18%.

The post 3 thematic ASX ETFs giving Aussie investors access to global megatrends appeared first on The Motley Fool Australia.

One of the easiest and most effective ways to build wealth is by investing in exchange-traded funds (ETFs). These funds give you exposure to entire markets, sectors, or investment strategies in just a single trade on the ASX.

By sticking with high-quality ETFs and holding them for the long term, investors can harness the twin powers of diversification and compounding. Here are three ASX ETFs that could make wealth building surprisingly simple.

VanEck Global Defence ETF (ASX: DFND)

Defence spending is on the rise, with governments across the world increasing the percentage of GDP they spend on defence after pressure from US President Donald Trump. This includes NATO agreeing to ramp up defence spending to 5% of their economic output by 2035.

This bodes well for the holdings in the VanEck Global Defence ETF. It offers exposure to leading stocks across the aerospace, defence, and cybersecurity industries. These include giants like Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and Raytheon.

For Australian investors, this ETF provides a straightforward way to gain exposure to an industry that's traditionally difficult to access on the ASX.

iShares S&P 500 ETF (ASX: IVV)

For global blue-chip exposure, it is hard to look past the iShares S&P 500 ETF. This ASX ETF tracks the performance of the 500 largest stocks in the United States, giving investors access to names like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

The US market has historically been one of the strongest performers worldwide, and many of its leading stocks dominate their respective industries on a global scale. The iShares S&P 500 ETF allows Australian investors to tap into that growth without the need to pick individual winners.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF could be worth a shout. It adds a quality-focused angle to this simple portfolio. The ASX ETF invests in US stocks that analysts believe have durable competitive advantages, or moats. These can include strong brands, cost advantages, or unique technologies.

Current holdings include companies like Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and Pepsico (NASDAQ: PEP). By focusing on businesses with lasting strengths, the VanEck Morningstar Wide Moat ETF aims to deliver stronger returns through multiple market cycles.

The post The easiest way to build wealth with ASX ETFs appeared first on The Motley Fool Australia.

Ongoing strength in the US market is lifting not just ASX ETFs holding US stocks but also those holding diversified international shares.

This is because US shares dominate diversified global ETFs as America is home to so many of the world's largest and most profitable businesses.

For example, the VGS ETF is invested in about 1,300 of the world's largest companies listed in major developed countries.

About 76% of those companies are in the US.

Another example is the iShares Global 100 AUD ETF (ASX: IOO), which seeks to track the performance of the 100 biggest global equities.

Just under 81% of IOO ETF holdings are US shares.

Last night, the benchmark index for the US market, the S&P 500 Index (SP: .INX), smashed another record high at 6,698.88 points.

The S&P 500 is up 13.8% in the year to date compared to an 8.2% bump for the S&P/ASX 200 Index (ASX: XJO).

Last night, the Dow Jones Industrial Average Index (DJX: .DJI) also hit a record 46,447.13 points, up 9% this year.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) followed suit with its own record of 22,801.90 points, up 26.8% in 2025.

On the ASX today, the ASX 200 is up 0.74% and the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.69%.

Let's look at some of the ASX ETFs holding international shares that are setting new 52-week highs, if not all-time records, today.

International ASX ETFs smash records on Tuesday

The post Own IOO, IVV, or VGS ETFs? They're smashing records today! appeared first on The Motley Fool Australia.

This follows a big session on Wall Street, with the benchmark S&P 500 Index (SP: .INX) reaching another record close of 6,656.8 points.

Today's strong market appears to be having an outsized impact on ASX exchange-traded funds (ETFs).

At the time of writing, an extraordinary number of ETFs have hit new 52-week highs, or multi-year highs, on the back of today's exuberance.

In fact, at the time of writing, 68 ASX exchange-traded funds have hit new high prices.

Macroeconomic elements may be playing a role in the market surge.

Yesterday, we had the news that the US Fed Reserve has cut interest rates and Australia's jobless rate held steady last month.

ETFs are a favoured way for Aussie investors to access international markets without the hassle of trading on an overseas exchange.

The amazing three-year run for US equities has inspired Aussie investors to think beyond the ASX 200 and the local banks and miners.

The popularity of ETFs is a global trend playing out strongly in Australia.

Betashares data shows Australian investors ploughed a record $5.28 billion into ASX ETFs in July alone.

68 ASX shares setting new records today

Here is a sample of the 68 ASX exchange-traded funds smashing new highs today.

The post 68 ASX ETFs smash multi-year highs amid strong trading on Friday appeared first on The Motley Fool Australia.

While much of the local attention has gone to individual companies such as DroneShield Ltd (ASX: DRO), the real story is the tidal wave of government spending that is fuelling the sector.

Here at home, the federal government has just committed an additional $12 billion to bolster Australia's military capabilities under the AUKUS alliance. This mirrors a global push: NATO members recently pledged to increase their collective defence spend from 2% to 5% of GDP by 2035. In Europe alone, that's an estimated US$324 billion increase.

And it's not just pledges. Order books for the world's largest defence contractors grew by US$119 billion in 2024 — up 17% on the prior year. Companies at the forefront of new technologies, such as Palantir Technologies Inc (NASDAQ: PLTR), are seeing demand accelerate.

A structural growth story

Defence is increasingly being treated as a permanent priority in government budgets rather than a discretionary expense. This shift suggests the theme is unlikely to fade, even if current geopolitical tensions eventually ease. 

At the same time, modern defence spending is no longer confined to tanks and submarines. Software, drones, AI, and cyber technologies are becoming integral to national security. That constant innovation is fuelling strong momentum across the sector, with companies like Palantir soaring more than 370% in the past year while many other defence leaders have also delivered steady gains as higher spending flows through. 

Beyond traditional hardware, the sector is benefiting from the rapid digitalisation of warfare, the rise of autonomous systems, satellite and space-based capabilities, and the growing demand for resilient cyber defences. These developments highlight how defence has become a multi-dimensional industry spanning physical equipment, digital networks, and advanced intelligence systems. Together, they point to a long runway for growth as governments prioritise both physical capability and technological superiority in their budgets.

For investors, trying to identify which individual companies will dominate each of these areas is no easy task. This is where ASX-listed defence ETFs can provide diversified exposure to the entire theme, combining established contractors with next-generation innovators in a single investment vehicle.

Top defence ETF options

For investors wanting exposure to this theme, two ASX-listed ETFs have quickly emerged as the standouts.

The Betashares Global Defence ETF (ASX: ARMR) has already surged more than 63% in the past 12 months. Its portfolio spans some of the biggest names in aerospace and defence, including holdings like Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC).

The VanEck Global Defence ETF (ASX: DFND) has delivered even stronger returns, climbing more than 85% in the year since its September 2024 launch. Over half of its companies are based in the United States, with the balance spread across major European allies such as France and Italy, as well as South Korea and other partner nations. Key holdings include Palantir, US missile and aerospace giant RTX Corp (NYSE: RTX), and Italian aerospace and defence group Leonardo SpA (FRA: FMNB).

Both ETFs are designed to focus exclusively on companies headquartered in NATO or allied nations. This ensures investors are gaining access to the core of the global defence supply chain — from traditional hardware like fighter jets, submarines, and missile systems, to advanced software, space technologies, and next-generation intelligence platforms.

Foolish Takeaway

The global defence sector is experiencing one of its strongest periods of growth in decades, underpinned by rising budgets, technological innovation, and ongoing geopolitical risks.

For Australian investors, trying to identify the next DroneShield is a challenging pursuit. However, through ETFs, it's possible to gain diversified exposure to the entire theme — capturing the winners while reducing single-stock risk.

The post ASX defence ETFs climb on soaring global spending appeared first on The Motley Fool Australia.