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.

Some themes and sectors within the market are obviously cyclical. Commodities (and commodity ETFs) are a clear example. But others might be at the start, or perhaps middle, if we're being honest, of a multi-year tailwind, with no visible impediments on the horizon. It's these ASX ETFs that I would be most open to adding to my portfolio this year.

With that in mind, let's discuss two ASX ETFs that I think fall into this bucket and are, therefore, looking like a buy at the start of 2026.

Two exotic ASX ETFs that I think are a buy for 2026 and beyond

First up, we have the BetaShares Global Cybersecurity ETF (ASX: HACK). This ETF does pretty much what it says on the tin – give ASX investors access to a global portfolio of companies who are all leaders in the cybersecurity space.

Every year, governments, businesses and individuals move more and more of their interactions to the internet. Whilst this might bring many benefits, it also brings vulnerabilities, which can be disastrous for everyone involved if they are exploited. As such, governments, businesses and individuals are increasingly willing to pay top dollar to protect themselves and their clients. That is a boon for every company within this ASX ETF.

We can see this in action with how HACK units have fared in recent years. As of 31 January, this ASX ETF has returned an average of 15.86% per annum since its inception in 2016.

Some of HACK's top holdings include Cisco Systems, Palo Alto Networks, Broadcom and Cloudflare. This ETF charges a management fee of 0.67% per annum.

Investing in defence

Next, let's discuss the Global X Defence Tech ETF (ASX: DTEC). It is an unfortunate reality that the global geopolitical environment has deteriorated in recent years. Many countries are decoupling from long-held alliances to individually manage threats in their region. Whilst this arguably makes the world a more dangerous and less predictable place, we must invest where the world is going, not where we wish it might go.

That's why I think this ASX ETF is a compelling investment for our current time. DTEC invests in a portfolio of global companies that are all leaders in providing defence technology, weaponry and other goods and services of that nature. Although it only began ASX life in September of last year, DTEC units have already returned more than 67% since (as of 31 January).

Some of this ETF's largest underlying positions include Lockheed Martin, RTX Corp, Rheinmetall and Palantir Technologies. The Global X Defence Tech ETF asks a management fee of 0.5% per annum.

The post I think these 2 exotic ASX ETFs are a buy in 2026 appeared first on The Motley Fool Australia.

Billy Leung, Senior Investment Strategist, reinforced that while gold and silver have dominated recent headlines, there is still plenty of opportunity in other corners of the market.

Here are three other themes investors should be aware of. 

AI infrastructure 

According to Global X, the narrative around AI is currently evolving. 

Reports are emerging that OpenAI is testing alternatives to Nvidia. 

According to Reuters, OpenAI has been unsatisfied with some of Nvidia's latest artificial intelligence chips, and it has sought alternatives since last year. 

While this has raised concerns around potential market share loss for Nvidia, switching costs across AI hardware, software stacks and developer ecosystems remain high, both in time and capital.

Mr Leung said the more important takeaway is not a sudden loss of Nvidia's dominance, but the continued broadening of the AI value chain. 

As AI workloads scale, opportunities extend beyond leading chip designers into the infrastructure layer supporting compute, networking and data centre build-out.

SpaceX and xAI

Another emerging story is that SpaceX and xAI are reportedly planning to merge ahead of a potential mega IPO, valuing the combined entity at around US$1.25 trillion. 

If realised, this would be one of the largest technology listings in history. It would also reshape the investable universe across launch services, satellite communications and frontier technologies.

This analysis supports a case for investing in defence shares because it points to a powerful overlap between defence, aerospace, and the rapidly accelerating space economy.

It could generate tailwinds for defence and aerospace companies supplying propulsion, satellites, sensors and mission-critical systems.

India and US Trade

Finally, the US is set to cut tariffs on India to 18% following commitments by Prime Minister Modi to curb Russian oil purchases and increase US imports. 

According to Global X, the announcement triggered sharp moves in India futures, easing a key macro overhang and reinforcing India's role within US-aligned supply chains. 

This development has been supportive for Indian equities and the rupee. 

While near-term volatility will persist, the combination of external resilience, domestic liquidity and institutional depth supports the case for India as a structural growth market rather than a macro risk trade.

How to gain exposure with ETFs

For investors looking into these themes more deeply, there are several thematic ASX ETFs that track these sectors. 

For global AI exposure: 

• Global X Artificial Intelligence ETF (ASX: GXAI)
• Global X Ai Infrastructure ETF (ASX: AINF)

Global defence: 

• Global X Defence Tech ETF (ASX: DTEC)
• Beta Global Defence ETF (ASX: ARMR)

For exposure to India: 

• Betashares India Quality ETF (ASX: IIND)
• Global X India Nifty 50 ETF (ASX: NDIA)
• VanEck India Growth Leaders ETF (ASX:GRIN)

The post Investment themes investors should be watching closely – Expert appeared first on The Motley Fool Australia.

Instead of picking individual shares, investors can use ASX ETFs to buy into sectors, thematics, or whole markets.

There is now $331 billion invested across 423 ETFs on the ASX today, according to Betashares data.

The Australian Securities Exchange has just released the full-year performance data for ASX ETFs in 2025.

Here, we highlight three ASX ETFs that delivered exceptional total returns last year.

Betashares Energy Transition Metals ETF (ASX: XMET)

XMET ETF delivered a return of 100.47% last year, as it capitalised on runaway commodity prices and mining stocks.

The XMET ETF tracks the Nasdaq Sprott Energy Transition Materials Select Index.

This ASX ETF invests in metal producers that are powering the global clean energy transition.

It has exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earth elements.

Many of these metals show up in our article on the 12 best-performing commodities of 2025.

Betashares explains the ETF's thesis:

The transition from fossil fuels to clean energy solutions is driving growth in a range of disruptive products and processes such as renewable energy generation, battery storage solutions, and electric vehicles, all of which are critically dependent on the select group of ETMs [Energy Transition Metals] that XMET provides exposure to.

Holdings include international shares like First Majestic Silver Corp and Ivanhoe Mines.

There are also Aussie shares like ASX lithium pure-play PLS Group (ASX: PLS) and Lynas Rare Earths Ltd (ASX: LYC).

XMET has net assets of $122 million and the management fee is 0.69%.

This ETF is changing hands for $17.81 per unit, down 3.2% on Friday.

Global X Defence Tech ETF (ASX: DTEC)

Over 2025, DTEC ETF returned 64% to investors as global defence spending ramped up amid ongoing geopolitical tensions.

DTEC is a relatively new ETF launched in October 2024. It doesn't yet pay dividends, so that 64% return was all capital growth.

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

The ETF's holdings include Lockheed Martin Corp, Rheinmetall AG, RTX Corp, and Palantir Technologies Inc.

The annual management fee is 0.5% and the ETF manages $133 million in funds.

DTEC is $19.51 per unit today, down 0.46%.

VanEck Australian Resources ETF (ASX: MVR)

MVR ETF was the best-performing ETF holding Aussie shares in 2025, returning 40.53%.

MVR seeks to track the performance of the MVIS Australia Resources Index.

Of course, this ETF invests in major mining companies like Fortescue Ltd (ASX: FMG), Rio Tinto Ltd (ASX: RIO), and Northern Star Resources Ltd (ASX: NST). But it goes beyond that.

MVR also invests in major energy players like Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

It also has positions in companies that provide services to the mining sector, like engineering services providers Monadelphous Group Ltd (ASX: MND) and Worley Ltd (ASX: WOR), and railway freight services provider, Aurizon Holdings Ltd (ASX: AZJ).

This ETF has $585.6 million in net assets. The management fee is 0.35%.

MVR ETF is trading for $48.56 apiece, up 0.27% on Friday.

The post 3 ASX ETFs that returned 40% to 100% 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.

These include Global X Defence Tech ETF (ASX: DTEC) and Global X Semiconductor ETF (ASX: SEMI).

ASX DTEC, which returned 64% to investors last year, is benefiting from a major increase in worldwide defence spending.

This includes a commitment made last year by the 32 NATO nations to raise their spending from 2% to 5% of GDP over the next decade.

SEMI ETF, which returned 56% in 2025, is leveraging the artificial intelligence (AI) investment theme, as the world's next generation of innovative technology will require semiconductors to power it.

How much will Global X ETF investors receive?

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

The post Own DTEC or SEMI ETFs? Here's why it's a big day for you appeared first on The Motley Fool Australia.

They provide great diversification, and are an easy vehicle for gaining exposure to international shares.

The latest available data from Betashares shows inflows into ASX ETFs totalled $4.3 billion in November.

That was the fifth consecutive month of inflows above $4 billion.

Betashares says ASX ETFs now have a record $324.9 billion in funds under management, up 33.8% in 12 months.

Here are three ASX ETFs that provided great returns to investors last year.

3 ASX ETFs that produced excellent returns in 2025

Betashares Video Games and Esports ETF (ASX: GAME)

Last year, GAME ETF lifted 28% in value and delivered a total return, including dividends, of 32%.

GAME ETF closed out the year at $17.51 apiece.

The GAME ETF invests in 37 stocks.

The top holdings are Electronic Arts, NetEase, Take-Two Interactive Software, and Tencent.

GAME ETF seeks to track the performance of the Nasdaq CTA Global Video Games & Esports Index.

Most of its investments are in interactive home entertainment devices and facilities.

Other major allocations include interactive media and services, and leisure products.

The management fee is 0.57% per year.

Betashares Australian Resources Sector ETF (ASX: QRE)

In 2025, QRE ETF ascended 30% and delivered a total return of 34%.

QRE ETF finished the year at $8.81 per unit.

ASX QRE holds 43 ASX shares with a 34% weighting to BHP Group Ltd (ASX: BHP).

QRE also invests in gold, copper, lithium, mineral sands, rare earths producers, as well as a few energy shares.

The top holdings are BHP, Rio Tinto Ltd (ASX: RIO), Woodside Energy Group Ltd (ASX: WDS), and Fortescue Ltd (ASX: FMG).

The management fee is 0.34% per annum.

Global X Defence Tech ETF (ASX: DTEC)

Over 2025, DTEC ETF returned 64% and finished the year at $17.51 apiece.

That 64% return was all capital growth as the ETF has not yet paid a dividend since its launch in October 2024.

Global defence spending is soaring amid ongoing geopolitical tensions.

This led to significant price growth for stocks in aerospace and defence last year.

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.

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

The ETF's top holdings are Lockheed Martin Corp, Rheinmetall AG, RTX Corp, and Palantir Technologies Inc.

The annual management fee is 0.5%.

The post 3 ASX ETFs that returned 32% to 64% in 2025 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.

These include Global X Copper Miners ETF (ASX: WIRE), which exposes investors to copper shares all over the world.

ASX WIRE has tailwinds due to a 37% lift in the copper price over the past year, as global demand increases due to the energy transition.

It also includes Global X Defence Tech ETF (ASX: DTEC), which has had a stellar run since inception in October 2024.

ASX DTEC is leveraging a massive increase in worldwide defence spending amid growing geopolitical tensions.

Global X reveals next lot of dividends for ASX ETFs

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

Global X will pay investors this Friday, 16 January.

The post Global X announces dividends for DTEC, WIRE and other ASX ETFs appeared first on The Motley Fool Australia.

While most are thematic funds, targeting a specific sector, there are also broad index tracking funds as well. 

The positive side of thematic investing is being able to gain exposure to a specific theme or niche that you have strong conviction in. 

Many of these funds have already brought solid returns. 

Let's look at how much an initial investment of $10,000 at each fund's inception would be worth today. 

Global X Defence Tech ETF (ASX: DTEC)

This ASX ETF was launched in October last year. 

"Launched" might be the perfect way to describe this fund's performance. 

Since inception (just over a year) it has risen 71.43%. 

At the time of writing, it is made up of 37 holdings. The underlying portfolio gives investors exposure to companies at the forefront of defence innovation. 

This includes AI, drones, and cybersecurity – all crucial components in today's modern defence landscape.

As global security concerns shift towards more technology-driven solutions, DTEC captures the sectors driving the future of defence.

Its largest exposure is to companies engaged in: 

• Aerospace & Defense (77.55%)
• Software (9.79%)
• Professional Services (7.35%)

Based on this ASX ETFs performance, an initial investment of $10,000 in October last year would now be worth approximately $17,143. 

Global X Ai Infrastructure ETF (ASX: AINF)

Another thematic fund from Global X that has soared since opening in late April/early May is the Global X AI Infrastructure fund. 

According to the provider, the objective of this ETF is to track the performance of companies involved in supporting the data centre infrastructure requirements arising from Artificial Intelligence operations. 

This includes companies involved in the supply of electric utilities and infrastructure, energy management and optimisation, data centre equipment manufacturing, thermal management, and production and refinement of Copper and Uranium used to power and operate the AI infrastructure.

It is made up of 30 total holdings, with 46% of its total exposure being to US based companies. 

Since its inception, it has risen an impressive 41.21%. 

A $10,000 investment when the fund first became available on the ASX would today be worth approximately $14,121.

Global X S&P World Ex Australia Garp Etf (ASX: GARP)

This fund has now been on the stock market since September last year. 

In that time, it has risen 28.41%. 

The fund tracks the performance of the S&P World Ex-Australia GARP Index.

The GARP acronym stands for Growth at a Reasonable Price (GARP).

Essentially, that means targeting companies with strong earnings growth, solid financial strength, and trading at reasonable valuations.

While the previous two funds mentioned are much more tightly focussed, this fund has 250 underlying holdings from across a variety of sectors. 

Essentially, it offers much better diversification than the previous two funds mentioned. 

A $10,000 investment at the opening of this fund would now be worth $12,841. 

The post Guess how much $10,000 in these ASX ETFs at inception would be worth today? appeared first on The Motley Fool Australia.

Thematic investing involves targeting a specific theme or sector, e.g. tech, AI, or ESG.

Basically, this allows investors to directly target specific themes. This is an alternative to broadly tracking indexes like the S&P/ASX 200 Index (ASX: XJO) or the S&P 500 Index (SP: .INX). 

Here are three of the best-performing thematic funds from Global X in 2025. 

Global X Defence Tech ETF (ASX: DTEC)

This year, global defence spending is soaring, with the DTEC ASX ETF rising 65.32% year to date. 

The fund provides investors with access to companies at the forefront of defence innovation. 

As global security concerns shift towards more technology-driven solutions, DTEC captures the sectors driving the future of defence. For example, AI, drones, and cybersecurity.

These are all crucial components in today's modern defence landscape.

At the time of writing, DTEC includes 37 underlying holdings, with 82% of the fund being focused on aerospace and defence. 

Global X Battery Tech & Lithium ETF (ASX: ACDC)

The Global X Battery Tech & Lithium ETF (ACDC) provides investors with exposure to global companies developing electrochemical storage technology and mining companies producing battery-grade lithium. 

This ASX ETF is made up of 38 holdings. Impressively, it has already risen 50.58% so far this year.

By geography, it has a relatively balanced exposure to:

• Japan (17.63%)
• United States (15.70%)
• South Korea (11.59%)
• Australia (11.46%)
• China (8.17%)

These companies focused on battery technology, and lithium is essential to the rise of many booming industries. For example: electric vehicles (EVs), renewable energy storage, and mobile devices.

ETFs Hydrogen ETF (ASX: HGEN)

The fund seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry. 

This includes companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells, electrolysers, and other technologies related to the utilisation of hydrogen as an energy source.

This ASX ETF has flown 86.07% higher since the start of the year, and at the time of writing, it is made up of 30 holdings. 

Approximately half of the fund is made up of US-listed companies. Furthermore, its largest individual exposure is to Bloom Energy Corp, with a 31.92% weighting. 

The post The best performing Global X ASX ETFs this year 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.

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%.

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