(Mirae Asset Global Investments) Mirae Asset Global Investments said Friday that the net assets of its Tiger US Defense Top10 ETF have surpassed 100 billion won ($75 million), as rising geopolitical tensions and expectations of higher US defense spending draw investor interest to American defense stocks.
According to the Korea Exchange, the ETF’s net assets reached 110.8 billion won as of Thursday, expanding roughly fourfold since the beginning of the year. The fund has gained 21 percent year-to-date, significantly outperforming the S&P 500, which fell 2.53 percent over the same period.
The ETF invests in 10 major US defense companies, with top holdings including Lockheed Martin at 22 percent, RTX Corporation at 19 percent, Northrop Grumman at 15 percent and General Dynamics at 14 percent.
Investor interest in defense stocks has grown as geopolitical tensions, including in the Middle East, have raised expectations of increased military spending and demand for advanced weapons systems.
In the US market, defense-focused funds such as the Global X Defense Tech ETF (SHLD) have also attracted attention, reflecting broader demand for exposure to the sector.
Market watchers say defense companies are emerging as a key investment theme as the US government signals the possibility of significantly expanding its defense budget.
“Defense companies are once again being recognized as structural beneficiaries amid rising geopolitical risks,” said Kim Nam-ho, head of global ETF management at Mirae Asset Global Investments. “The Tiger US Defense Top10 ETF offers investors an efficient way to gain concentrated exposure to the world’s leading defense firms and the long-term growth of the global defense industry.”
silverstar@heraldcorp.com