Defense industry (US-tilted)
The big defense contractors: Lockheed Martin, RTX, Northrop Grumman, General Dynamics, BAE Systems, Boeing, L3Harris. More US-tilted than the HANetf NATO fund. Listed in March 2023 so it caught the post-Ukraine rally early.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Concentrated bet on the US defense primes
- Riding the multi-year defense spending tailwind
- Newer fund: caught defense rally from near inception
- Heavily concentrated in a handful of names
- Ethically controversial for some investors
- Less geographically diverse than the NATO fund
About this fund
Tracks the MarketVector Global Defense Industry Index. Heavy in US prime contractors but includes major European defense names. Listed in March 2023, so it captured the post-Ukraine defense rally from near inception.
Alternatives to DFNS
Close substitutes in the same category. Cheapest first.
Available on Interactive Brokers
Low-cost access to Defense industry (US-tilted) and 10,000+ funds worldwide.
Frequently asked questions
Is DFNS.L accumulating or distributing?
VanEck Defense UCITS ETF (DFNS.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for DFNS.L?
DFNS.L has a total expense ratio (TER) of 0.55% per year. On a $10,000 holding that is roughly $55 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy DFNS.L on Interactive Brokers?
Yes. DFNS.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does DFNS.L invest in?
VanEck Defense UCITS ETF (DFNS.L) tracks the MarketVector Global Defense Industry. The big defense contractors: Lockheed Martin, RTX, Northrop Grumman, General Dynamics, BAE Systems, Boeing, L3Harris. You buy one fund and get the whole basket in a single trade.
Is DFNS.L a UCITS ETF, and where is it domiciled?
Yes, DFNS.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is DFNS.L?
On the TickerCompare 1 to 5 scale, DFNS.L is rated higher risk (4/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.