Select STOXX Europe Aerospace & Defense ETF (EUAD)
Europe Announced the Rearmament. America's Defense Fund Cashed the Checks
Investors who bought the Select STOXX Europe Aerospace & Defense ETF (CBOE:EUAD) were buying a clean story: Berlin, Paris, London, and Warsaw pledging generational increases in military spending, and a fund built to own Airbus, Rheinmetall, BAE Systems, Leonardo, and Saab directly.
Should You Invest in the Select STOXX Europe Aerospace & Defense ETF (EUAD)?
If you're interested in broad exposure to the Industrials - Aerospace & Defense segment of the equity market, look no further than the Select STOXX Europe Aerospace & Defense ETF (EUAD), a passively managed exchange traded fund launched on October 22, 2024.
Watch These 3 Defense Stocks to Know if EUAD Can Hold Its Gains
The Select STOXX Europe Aerospace & Defense ETF (NYSEARCA:EUAD) has snapped back hard after a sluggish start to the year.
EUAD: My Favorite ETF Strategy On Top Of Europe Defense Tailwinds
Select STOXX Europe Aerospace & Defense ETF (EUAD) offers concentrated exposure to European defense firms benefiting from rising geopolitical tensions and increased EU/NATO defense budgets. EUAD's top holdings possess strong economic moats, diversified military-commercial revenue streams, and new growth drivers like counter-drones and satellite communications. Relative and absolute valuation suggest EUAD is 16–18% undervalued, with a Fair Value estimate around $48 versus the current ~$41 price.
3 Defense ETFs to Buy as Europe Rearming Cycle Accelerates Into 2026
European governments are pushing defense budgets higher than at any point since the Cold War, and three exchange-traded funds offer distinct ways to ride the spending cycle: the iShares U.S.
Watch These 3 Contract Signals Before EUAD's Next Move
Select STOXX Europe Aerospace & Defense ETF (NASDAQ:EUAD) was the cleanest way to own European defense stocks from a U.S.
Should You Invest in the Select STOXX Europe Aerospace & Defense ETF (EUAD)?
Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the Select STOXX Europe Aerospace & Defense ETF (EUAD) is a passively managed exchange traded fund launched on October 22, 2024.
U.S. Defense Stock Underperformance: What The Market Is Telling Us
Major U.S. defense stocks failed to outperform during the Iran conflict, tracking the S&P 500's negative performance instead. In this article, I explore several reasons for their apparent failure to serve as a meaningful hedge during wartime.
EUAD: Europe Has No Choice, And This ETF Could Be The Big Beneficiary
I recommend buying the Select STOXX Europe Aerospace & Defense ETF for its superior risk-reward profile versus U.S. peers. EUAD benefits from Europe's largest defense investment cycle since the Cold War, with military spending rising toward 2% of GDP in 2025. EUAD trades at a 30x P/E, offering a 20% upside if it re-rates to XAR's 36x multiple, reflecting potential for valuation catch-up.
ETFs to Consider Amid Geopolitical Woes and Higher US Military Budget
Trump's $1.5T military budget and rising global tensions could lift defense ETFs and spill over into cybersecurity, AI, manufacturing and space ETFs.
Look to This Hot Europe ETF as the Continent Rearms
Market uncertainty is more than just Fed or domestic policy related; often, geopolitics can have an even bigger impact on the fate of the markets than either of those factors. While not as severe as the impact left on the world by the pandemic, the threat of war also looms.
EUAD: Europe's Rearmament Isn't Going To Plan
The Select STOXX Europe Aerospace & Defense ETF is a concentrated European defense bet that benefited from the NATO rearmament trade. After a near 80% run from my initial interest in the SHLD ETF, a similar fund, I believe the narrative is priced in. Procurement friction, manpower issues, and an imperfect index converge to make EUAD a "Hold" for me, as I am unsure about Europe's future given recent headlines.
EUAD: Incursions In EU Highlight Need For Drone Defense And Rearmament
The Select STOXX Europe Aerospace & Defense ETF is well-positioned to benefit from Europe's increasing focus on drone warfare and defense spending. Recent drone incursions and calls for a European 'drone wall' could drive significant demand for anti-drone technology, benefiting EUAD's holdings. EUAD is fairly valued compared to U.S. peers but offers a higher potential upside if European military spending materializes.
2 International ETFs Your Portfolio May Be Missing
Whether it's the U.S. government shutdown, the broader market hitting all-time highs, or perhaps too much exuberance around artificial intelligence (AI), there's plenty of reason to question the elevated valuations of U.S. stocks. U.S. markets are the envy of the world, but every asset has an appropriate value, which is why it can be beneficial for investors to broaden their horizons and look at stocks internationally.
4 Top-Performing ETF Areas of First Nine Months of 2025
In 2025, the best-performing ETF themes include gold and silver mining (SLVP, RING), bitcoin miners (WGMI), uranium (URA) and defense (EUAD, SHLD).
Riding the Wave: Defense ETFs to Watch After the US-UK Tech Pact
Defense ETFs are set to rally as the U.S.-UK Technology Prosperity Deal fuels AI-driven defense growth with $350B investment.
NATO Airspace Crisis Ignites Rally in Defense ETFs
Defense ETFs surged as NATO airspace breaches by Russian drones and a major spending pledge fueled investor demand.
EUAD: The 'Other' Way To Profit As Rearmament Of Europe Begins
European defense stocks are poised to benefit from NATO's commitment to increase defense spending, driven by geopolitical tensions and US pressure. I favor the Select STOXX Europe Aerospace & Defense ETF over any single company, using quintessentially U.S. Boeing as an example of the benefits of diversification. European defense companies like Airbus, Rheinmetall, and Saab are highly competitive, with advanced technology rivaling US counterparts and strong prospects from rising budgets.
EUAD: Entering A NATO Super Cycle
I rate EUAD a Buy as Europe's defense sector enters a super cycle driven by NATO's increased spending to 3.5% of GDP. EUAD offers convenient, concentrated exposure to top European defense names, with a 12% upside potential plus a 1% dividend yield. Consensus forecasts 20% annual earnings growth with a reasonable 1.3x PEG ratio versus US peers at 2x.
Moves To Bolster Defense In Europe Will Bolster EUAD In Your Portfolio
Select STOXX Europe Aerospace & Defense ETF is well-positioned to benefit from Europe's defense spending increases, driven by geopolitical tensions and a renewed focus on security. Drones and cybersecurity are key growth areas, with holdings like Airbus, BAE Systems, and Thales poised to capitalize on evolving warfare trends. EUAD offers geographic diversification and exposure to both traditional and emerging defense technologies, balancing risk and opportunity.