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Defence ETFs in Ireland: Five UCITS Funds Irish Investors Can Buy
Published 30 June 2026 · 7 min read · ETF Guides
Yes, Irish investors can buy defence ETFs. Five UCITS defence funds are Irish-domiciled, listed on European exchanges, and accessible through any standard Irish broker. All are accumulating, all carry the same Irish exit tax treatment as any other Irish-domiciled ETF, and all screen out controversial weapons. Below is what each one does and how to choose between them.
The five funds at a glance
| Fund | Ticker | ISIN | TER | AUM | Focus |
|---|---|---|---|---|---|
| VanEck Defense | DFNS / TFN | IE000YYE6WK5 | 0.55% | €6.6bn | Global |
| WisdomTree Europe Defence | WDEF / EUDF | IE0002Y8CX98 | 0.40% | €4.1bn | European |
| iShares Global A&D | DFND | IE000U9ODG19 | 0.35% | ~€1.8bn | Global |
| iShares Europe Defence | DFEU | IE000IAXNM41 | 0.35% | €367m | European |
| HANetf Future of Defence | NATE | IE00041H4WT9 | 0.49% | Early stage | NATO only |
AUM as of mid-2026. All funds are accumulating and Irish-domiciled. Irish exit tax at 38% applies to all.
The first decision: European or global?
This is the most important choice before picking a fund. European defence ETFs (WDEF, DFEU) hold only European companies: BAE Systems, Rheinmetall, Leonardo, Saab, Thales, and similar names. Global defence ETFs (DFNS, DFND) add large US contractors: Lockheed Martin, RTX (Raytheon), Northrop Grumman, General Dynamics, and L3Harris.
Since 2022, European funds have significantly outperformed global equivalents. The rearmament trade has concentrated in European defence budgets, and European stocks were playing catch-up from a lower base. WDEF reached €4.1 billion in assets within fifteen months of launching in March 2025 because of that demand.
The risk is asymmetric in the other direction too. A NATO political shift, a Ukraine peace settlement, or a pullback in European defence spending would hit WDEF and DFEU harder than a globally diversified fund. DFNS and DFND absorb US defence spending as a stabiliser.
NATE sits in a separate category. It screens for companies in NATO member states with more than 50% of revenues from specific defence activities. That gives it stronger revenue purity but less diversification than the others.
Each fund in detail
VanEck Defense UCITS ETF (DFNS)
ISIN IE000YYE6WK5 · TER 0.55% · AUM €6.6bn · Launched March 2023
The largest defence UCITS ETF with €6.6 billion in assets. DFNS tracks a global index covering defence and cybersecurity companies and strictly excludes manufacturers of controversial weapons including cluster munitions and anti-personnel mines. Top holdings include Palantir, RTX, L3Harris and BAE Systems.
The 0.55% TER is the highest of the five funds. You are paying for VanEck's deeper controversial weapons screening and the cybersecurity overlay that DFND does not include. Trades on LSE (ticker DFNS) and Xetra (ticker TFN). Available on DEGIRO, Interactive Brokers, Trading 212 and most other Irish-accessible brokers.
WisdomTree Europe Defence UCITS ETF (WDEF)
ISIN IE0002Y8CX98 · TER 0.40% · AUM €4.1bn · Launched March 2025
The second-largest fund in this list and the largest European-only option. WDEF focuses on European companies in the military and defence industry: Rheinmetall, Leonardo, Saab, Thales, BAE Systems and similar names. Launched March 2025, it gathered €4.1 billion within fifteen months.
Trades on LSE (ticker WDEF) and Xetra (ticker EUDF). If your thesis is specifically European rearmament rather than global defence, this is the largest and most liquid European-only option.
iShares Global Aerospace & Defence UCITS ETF (DFND)
ISIN IE000U9ODG19 · TER 0.35% · AUM ~€1.8bn · Launched February 2024
The cheapest global defence fund at 0.35%. DFND tracks the S&P Developed BMI Select Aerospace and Defense 35/20 Capped index, covering established aerospace and defence companies across developed markets. The 35/20 capping limits single-stock concentration.
Issued by BlackRock, with approximately €1.8 billion in assets. No cybersecurity overlay unlike DFNS. Trades on LSE and Euronext Amsterdam (ticker DFND). The most straightforward option if you want global defence exposure at the lowest available cost.
iShares Europe Defence UCITS ETF (DFEU)
ISIN IE000IAXNM41 · TER 0.35% · AUM €367m · Launched May 2025
BlackRock's European-focused option. DFEU tracks the STOXX Europe Targeted Defence Index with 31 holdings. Launched May 2025 and has attracted €367 million. At 0.35% TER, it is the cheapest European-only fund available.
WDEF competes directly for European-only investors. WDEF is larger and more established; DFEU costs 0.05% less per year. The holding difference will be small but not identical given different index methodologies.
HANetf Future of Defence Screened UCITS ETF (NATE)
ISIN IE00041H4WT9 · TER 0.49% · Launched November 2025
The most selective option. NATE requires constituent companies to be headquartered in a NATO member state and to derive more than 50% of revenues from defence activities: military aircraft, armoured vehicles, weapon systems, missiles, munitions, defence electronics, naval ships, or cybersecurity contracting with NATO nations.
Classified as SFDR Article 8. Launched November 2025 and still early in building assets. For investors who want strict revenue purity around true defence companies rather than the broader aerospace and industrial exposure that enters wider global indices.
Irish tax treatment
All five funds are Irish-domiciled UCITS funds with IE ISINs . Unlike gold ETCs or bitcoin ETPs, where the tax treatment involves genuine uncertainty, the position here is clear.
Irish exit tax applies to all five funds
- Gains taxed at 38% under Part 27 TCA 1997
- 8-year deemed disposal rule applies: tax on unrealised gains every 8 years
- All five funds are accumulating, so no annual income to declare
- The €1,270 CGT annual exemption does not apply to exit-taxed funds
- Report in the exit tax section of Form 11 , not under CGT
In practice you hold these exactly as you would hold VWCE or CSPX: buy, hold, report on disposal and every 8 years. No separate treatment required, no adviser needed for routine cases. See the Irish ETF tax guide for full detail on how exit tax works.
Controversial weapons screening
All UCITS-registered funds are prohibited from holding companies that manufacture anti-personnel mines and cluster munitions under EU law (Directive 2014/91/EU incorporating the Ottawa Treaty and Convention on Cluster Munitions). Beyond that legal floor, most defence UCITS ETFs apply additional screening that varies by fund.
DFNS (VanEck) and WDEF (WisdomTree) both publish explicit exclusion lists covering biological weapons, chemical weapons, and nuclear weapons for states outside the Non-Proliferation Treaty. NATE (HANetf) is classified SFDR Article 8, meaning it applies additional ESG criteria. DFND tracks the S&P index, which uses its own methodology. Before investing, download the fund's Key Information Document (KID ) and check the screening section if this matters to your investment criteria.
Which should you buy?
European exposure, lowest cost
DFEU (0.35%, €367m). Newer and smaller than WDEF but 0.05% cheaper. STOXX Europe Targeted Defence Index, 31 holdings.
European exposure, most established
WDEF (0.40%, €4.1bn). Larger, more liquid, launched March 2025. The market's go-to for European-only defence.
Global exposure, lowest cost
DFND (0.35%, ~€1.8bn). Standard S&P Aerospace and Defense index, no cybersecurity overlay. Cheapest global option.
Global with cybersecurity, deepest screening
DFNS (0.55%, €6.6bn). Largest fund, includes cybersecurity, strict controversial weapons exclusions. You pay 0.20% more per year for it.
NATO revenue purity
NATE (0.49%). Requires >50% revenues from defence activities, NATO member state only. Article 8 SFDR. Very new, early in building assets. For conviction-level investors who want revenue-pure defence exposure.
Where to buy from Ireland
All five funds are available on DEGIRO, Interactive Brokers and Trading 212. Larger funds (DFNS, WDEF, DFND) are also available on Lightyear and XTB. All are listed on LSE, Euronext or Xetra, exchanges that all major Irish-accessible brokers support. If you are not set up with a broker yet, see the Irish broker comparison covering fees, FX costs, regulation and tax export quality.
New Lightyear customers:Sign up and deposit €100 to get a random €10–€100 added as a free fractional share or ETF. Use code ETFIE.
Investing involves risk. Returns can vary and aren’t guaranteed. See full T&Cs.
Frequently asked questions
Can Irish investors buy defence ETFs?
Yes. Five Irish-domiciled UCITS defence ETFs are available: DFNS (IE000YYE6WK5), WDEF (IE0002Y8CX98), DFND (IE000U9ODG19), DFEU (IE000IAXNM41), and NATE (IE00041H4WT9). All are accumulating and subject to Irish exit tax at 38% with the 8-year deemed disposal rule.
What is the largest defence UCITS ETF?
The VanEck Defense UCITS ETF (DFNS, ISIN IE000YYE6WK5) with approximately €6.6 billion in assets as of mid-2026. TER is 0.55%. It covers global defence and cybersecurity and excludes controversial weapons.
What is the cheapest defence ETF for Irish investors?
Both DFEU (iShares Europe Defence) and DFND (iShares Global Aerospace and Defence) charge 0.35% TER. DFEU is European-only; DFND is global. Both are Irish-domiciled and accumulating.
How are defence ETFs taxed in Ireland?
All five funds are Irish-domiciled UCITS ETFs, so Irish exit tax applies at 38% on gains, with the 8-year deemed disposal rule. This is the same treatment as VWCE, CSPX or any other Irish-domiciled ETF. The €1,270 CGT annual exemption does not apply. Report under exit tax in Form 11, not under CGT.
What is the difference between European and global defence ETFs?
European funds (WDEF, DFEU) hold only European names: BAE Systems, Rheinmetall, Leonardo, Saab. Global funds (DFNS, DFND) also include US contractors: Lockheed Martin, RTX, Northrop Grumman. European funds have significantly outperformed since 2022 but carry more concentrated risk if European rearmament slows.
Do defence ETFs exclude controversial weapons?
Most do. DFNS, WDEF, DFEU and NATE all apply controversial weapons exclusions beyond the UCITS legal minimum. DFND tracks the S&P index with a different methodology. Check each fund's KID or prospectus for the specific exclusion list before investing.