Hanwha Asset Management Launches Hanwha PLUS Global Defense ETF Tracking Solactive Global Defense Index

Solactive is pleased to extend its collaboration with Hanwha Asset Management, with the launch of Hanwha PLUS Global Defense ETF, tracking the Solactive Global Defense Index. This ETF aims to offer exposure to top-performing companies within the global defense sector. Amid heightened geopolitical tensions, the ETF focuses on the US and Europe, two regions well-known for significant defense innovation and spending.

The global defense sector has gained momentum recently as nations around the world prioritize national security and military expansion due to increasing geopolitical concerns. The US continues to lead the world in defense spending with its 2023 military budget standing at around USD 916 billion, largely due to investments in advanced technologies such as autonomous weapons, AI-powered defense systems, and cybersecurity solutions. In addition, many NATO members have increased their military expenditure and exceeded the 2% of GDP target for defense spending, further reflecting Europe’s commitment in strengthening its strategic autonomy and security alliance.^[1] This trend reflects a significant shift in government priorities, which creates a favorable environment for defense contractors, making this sector an attractive option for investors seeking related returns.

The Solactive Global Defense Index aims to capture 10 leading US and European defense companies that are critical to national security and defense innovation. The index selects defense-related companies using a granular classification framework, including advanced combat and support systems, autonomous military drone manufacturing, missile systems and ordnance, defense electronics manufacturers, and diversified defense providers. The top ten qualifying companies are equally weighted, with a cap of five companies per country, thus creating a diversified and balanced representation of defense industry leaders from both the US and Europe.

The ETF listed on 12 November on the Korea Stock Exchange with the ticker code 496770.KS.

Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to deepen our partnership with Hanwha Asset Management on this timely ETF. As geopolitical risks reshape global defense dynamics, the Solactive Global Defense Index provides a focused view of the companies driving the future of international security and offer investment opportunities for the growth of the industry.”

Jeongseop Keum, Head of ETF Business Division in Hanwha Asset Management, commented: “The defense industry market is expected to expand as geopolitical conflicts intensify and the need for self-defense grows. In this context, the PLUS Global Defense ETF, which invests in leading global defense companies, is poised to be a strong option for investors looking to benefit from the growth of the global defense industry. We look forward to continuing to create quality products with Solactive in the future.”

^{[1] Global military spending soars to new record highs}