Solactive is proud to announce its collaboration with Deka on the launch of the Deka Europe Defense UCITS ETF (ISIN: DE000ETFL664), which tracks the Solactive Europe Defense Index. This product offers targeted exposure to leading European defense companies at a time when defense spending across the region is entering a sustained, long-term expansion phase.
Following decades of underinvestment, European countries are now significantly enhancing their national defense capabilities. Defense budgets are increasingly recognized as vital to geopolitical stability and industrial resilience. A record 23 NATO member states are projected to meet or exceed the 2% of GDP defense spending target in 2025, rising from only nine in 2020. EU Member States’ collective defense expenditure reached approximately €343 billion in 2024 (1.9% of GDP) and is expected to grow to €381 billion in 2025, equivalent to around 2.1% of GDP. Recent policy initiatives, including Germany’s special €500 billion defense fund, demonstrate a strong, multi-year political commitment to modernisation and capability enhancement.[1],[2]
Recent geopolitical developments have reinforced the urgent need for European nations to strengthen sovereign defense capabilities, reduce reliance on external suppliers, and invest in advanced technologies. Demand is increasing for systems such as autonomous platforms, missile defense, naval systems, secure communications, cyber defense, and electronic warfare. European companies with expertise in these critical technologies stand to benefit from expanded procurement pipelines, increased R&D budgets, and long-term strategic planning.
The Solactive Europe Defense Index is designed to capture this evolving market environment by selecting companies primarily engaged in the defense sector. The index is derived from the Solactive GBS Global Markets Defense All Cap USD Index and includes companies classified as Defense Manufacturers, Defense Suppliers, or Diversified Defense Players within Developed Markets Europe. It selects 30 constituents based on free-float market capitalization while applying weight caps of 10% for Defense Manufacturers and Defense Suppliers and 2% for Diversified Defense Players to ensure balanced diversification across the defense value chain. The index excludes companies involved in the production of controversial weapons, including anti-personnel mines, cluster munitions, biological and chemical weapons, as well as weapons with incendiary or blinding effects.
The ETF was listed on 1st December 2025 on XETRA, Frankfurt Stock Exchange and Stuttgart Stock Exchange with the ticker “D6RU”.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are pleased to support Deka in launching the Deka Europe Defense UCITS ETF. As European nations embark on a structural investment cycle in defense and technological sovereignty, this index offers a transparent, rules-based reflection of the companies shaping Europe’s evolving security landscape. We look forward to continuing our partnership with Deka and delivering robust index solutions for their innovative product lineup.”
Thomas Pohlmann, Head of ETF Product Management, Deka Investment, commented: “Defense has become an investment trend. European NATO member states have significant catching up to do in terms of defense capabilities. Companies in this sector are likely to receive numerous orders in the coming years, which should have a positive impact on their stock prices.”
[1] EU defence in numbers, Last review: 16 October 2025.
[2] EU Member States’ defence budgets, EPRS | European Parliamentary Research Service, May 2025
