Xtrackers Future of Defence UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 45bps

Trading Currency: GBP

Pays Income: False

Listing Date: 26 Sep 2025

Ticker: XDEF

ISIN: LU3061478973

This investment vehicle offers targeted exposure to the global defence and security industry, a sector experiencing significant growth driven by a complex and evolving geopolitical environment. As nations around the world increase their defence budgets to modernize their military capabilities and address emerging security threats, the companies within this ecosystem are positioned for sustained demand. The fund captures this trend by investing in companies involved in the development and provision of military hardware, aerospace technology, and advanced security solutions. This includes not only traditional defence contractors but also firms innovating in areas critical to modern warfare and national security.

The portfolio is composed of companies from developed and select emerging markets that are leaders in the aerospace and defence sectors. This includes manufacturers of advanced aircraft, naval vessels, and land-based combat systems. Beyond conventional hardware, the strategy also provides access to companies specializing in high-growth, technology-driven fields such as cybersecurity, space exploration and systems, autonomous drones, and battlefield communications. By tracking an index that identifies key players across this broad spectrum, the fund offers a comprehensive investment into the entire value chain of the future of defence, from established industry giants to innovative technology providers shaping the next generation of security.

For investors seeking to align their portfolio with the long-term structural trend of increasing global security spending, this fund provides a specialized and efficient solution. It can serve as a tactical allocation to gain exposure to a non-cyclical industry that often performs independently of broader economic cycles. The product's structure as an accumulating fund means that any dividends paid by the underlying companies are automatically reinvested back into the fund, which can help to accelerate compound growth over the long term. This thematic instrument is designed to complement a core diversified portfolio by adding a distinct and timely growth-oriented exposure.