Geopolitical instability is pushing governments around the world to increase their military readiness.

In June, the 32 member nations of NATO committed to raising their defence spending from 2% of GDP to 5% by 2035.

This was directly beneficial to the Betashares Global Defence ETF because it only invests in defence companies headquartered in NATO member or allied nations.

Betashares said defence was one of the 2 best-performing ETF investment themes in the second half of FY25.

What's in the ARMR ETF portfolio?

This thematic ASX exchange-traded fund (ETF) is fairly new, having only been listed in October 2024.

The ARMR ETF tracks the VettaFi Global Defence Leaders Index (before fees).

It gives investors targeted exposure to companies that derive more than 50% of their revenues from the development and manufacturing of military and defence equipment and defence technology.

The ETF currently holds 43 stocks focused on defence, with 84.7% of assets in aerospace and defence companies, 8.2% in software, and 6.5% in research and consulting services.

Its country allocation is led by the United States (59.5%), followed by France (11.5%), Germany (9.3%), Britain (8.8%), and South Korea (3.1%).

Here is a table of the top 10 holdings in the ARMR ETF and what those companies do.

What about income?

In terms of dividends, the ARMR ETF intends to pay one distribution per year.

ARMR ETF paid its maiden dividend of 53.546615 cents per unit this month.

There is a yearly management fee of 0.55%.

The post Here is what you're invested in with ARMR ETF appeared first on The Motley Fool Australia.