Defence companies
Weapons makers and defence contractors based in NATO countries: Lockheed Martin, RTX (Raytheon), Northrop Grumman, BAE Systems, Rheinmetall. Has surged since the Russia-Ukraine war as European countries rebuild their militaries. Launched in 2023, so limited history through tough times.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Beneficiary of rising NATO defence budgets
- Owns top US and European defence primes
- Less correlated with consumer/tech swings
- Launched 2023: no track record in calm times
- Highly concentrated: top names dominate the fund
- Ethical concerns may matter to you
About this fund
Lockheed Martin, RTX, Northrop Grumman, BAE Systems, Rheinmetall etc. Highly concentrated. New fund (2023), so back-tests are short.
Alternatives to NATO
Close substitutes in the same category. Cheapest first.
Available on Interactive Brokers
Low-cost access to Defence companies and 10,000+ funds worldwide.
Frequently asked questions
Is NATO.L accumulating or distributing?
HANetf Future of Defence UCITS ETF (NATO.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 NATO.L?
NATO.L has a total expense ratio (TER) of 0.49% per year. On a $10,000 holding that is roughly $49 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 NATO.L on Interactive Brokers?
Yes. NATO.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 NATO.L invest in?
HANetf Future of Defence UCITS ETF (NATO.L) tracks the EQM Future of Defence. Weapons makers and defence contractors based in NATO countries: Lockheed Martin, RTX (Raytheon), Northrop Grumman, BAE Systems, Rheinmetall. You buy one fund and get the whole basket in a single trade.
Is NATO.L a UCITS ETF, and where is it domiciled?
Yes, NATO.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 NATO.L?
On the TickerCompare 1 to 5 scale, NATO.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.