NATO

Future of Defence UCITS ETF - Acc

The Future of Defence ETF provides exposure to NATO and NATO+ ally defence and cyber defence spending.

 

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As of 29/02/2024

Fund Overview

Future of Defence UCITS ETF (NATO) provides exposure to the companies generating revenue from NATO and NATO+ ally defence and cyber defence spending.

Global military spending is rising. In 2022, $2.2 trillion was spent on defence — the highest level ever recorded. With the ongoing geopolitical tensions, one area of growth is among European NATO members. But despite such record spending, most European NATO members are still lagging the 2% of GDP target.

In the 21st century, national security is not just about physical borders and military strength. After invading Ukraine in 2014, Russia carried out a multitude of large-scale cyberattacks on the country.

Since the full-scale invasion of Ukraine in 2022, state-sponsored actors have targeted 128 governmental organisations in 42 countries that support Ukraine, highlighting the importance of cyber defence.

The Future of Defence ETF tracks the EQM Future of Defence Index. Using a passive, rules-based approach, companies must derive more than 50% of their revenues from the manufacture and development of military aircraft and/or defence equipment or have business operations in cyber security contracted with a NATO+ member country. 

Please remember that the value of your investment may go down as well as up and your capital is at risk.

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Why invest in the Future of Defence ETF?

Increased NATO and NATO+ ally spending:

Despite a record spending on defence in 2022, most European NATO members need to spend more to close the gap and reach the 2% of GDP target outlined by the alliance. As geopolitical tensions continue to worsen, this situation will have to change, and fast.


Need for modernised defence solutions:

Companies exposed to NATO and NATO+ ally spending stand to benefit from the growing need for modernised defence solutions. The rise of data breaches and increasing sophistication of cyberattacks poses a global security threat, driving increased adoption of cybersecurity solutions.


Global growth opportunity:

The defence market is expected to grow at a CAGR of 5.6% to $718.12 billion by 2027, and the global cybersecurity market by a CAGR of 8.9% over the same period. It is likely that these growth rates will accelerate even further to reflect the risks associated with the Russia-Ukraine conflict.

Key Risks

Thematic ETFs are exposed to a limited number of sectors and thus the investment will be concentrated and may experience high volatility

Investors’ capital is fully at risk and may not get back the amount originally invested

Exchange rates can have a positive or negative effect on returns;

The value of equities and equity-related securities can be affected by daily stock and currency market movements

When you invest in ETFs, your capital is at risk.

As of 29/02/2024

Listings & Codes

Exchange Ticker RIC SEDOL ISIN Valoren WKN CCY Listing Date
LSE NATO LN NATO.L BP6N0Z2 IE000OJ5TQP4 - - USD 04/07/2023
LSE NATP LN NATP.L BP6N104 IE000OJ5TQP4 - - GBP 04/07/2023
Borsa Italiana NATO IM NATO.MI BMBR649 IE000OJ5TQP4 - - EUR 14/07/2023
Xetra ASWC GY ASWC.DE BMBR650 IE000OJ5TQP4 - A3EB9T EUR 04/07/2023
SIX NATO SW NATO.S BRXJS97 IE000OJ5TQP4 127984260 - CHF 11/01/2024
Euronext Paris NATO FP NATO.PA BQRGHW3 IE000OJ5TQP4 - - EUR 22/02/2024

Registrations

Fund Overview
TickerNATO
Asset ClassEquities
Base CurrencyUSD
Income TreatmentAccumulating
Inception Date03/07/2023
IndexEQM Future of Defence Index
Number of Holdings50
Rebalance FrequencyQuarterly
TER49 bps
Net Asset ValuesAs of 29/02/2024
NAV$10.20
Net Assets of Fund176,296,540.30 (USD)
Shares Outstanding17,290,000
Issuer AUM$987,551,217
Structure
Replication MethodPhysical
DomicileIreland
UCITS CompliantYes
Fund UmbrellaHANetf ICAV
Financial End Year31/03
Legal FormICAV
Legal And Tax Information
UCITS EligibleYes
ISA EligibleYes
SIPP EligibleYes
UK Fund Reporting StatusSeeking
Key Service Providers
CustodianJ.P. Morgan SE - Dublin Branch
Portfolio ManagerVident Advisory LLC
Index Details
IndexEQM Future of Defence Index
CurrencyUSD
Index ProviderEQM
Index TickerNATONTR
Index PE Ratio28.09
NATO Performance 1M 3M 6M YTD 12M Since Inception
(30/01/2023)
EQM Future of Defence Index 4.23% 18.54% 16.85% 4.23% 35.79% 20.40%
Source: Bloomberg. as of 31 January 2024.

Performance for the fund and the index is shown in USD. Fund performance is shown net of fees with income reinvested where applicable. Please be aware that fees have a detrimental impact on the performance of an ETP. Past performance is not an indicator for future results. If fund is less than 12 months old, YTD field will be calculated since inception.

Monthly Reports

Monthly ReportsJanuary 2024

Future of Defence ETF Monthly Report | January
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Monthly ReportsDecember 2023

Future of Defence ETF Monthly Report | December
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Monthly ReportsNovember 2023

Future of Defence ETF Monthly Report | November
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Insights

NewsJuly 2023

Introducing the future of defence ETF – an ETF for a less stable world
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Press Releases

PressFebruary 2024

Future of Defence UCITS ETF surpasses $50 million AuM as geopolitical tensions continue to mount
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PressJanuary 2024

HANetf lists Future of Defence, European Green Deal, and Uranium Miners ETFs on SIX Swiss Exchange
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PressJune 2023

HANetf launching Future of Defence UCITS ETF (NATO) on London Stock Exchange and XETRA on 4th July
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Listings & Codes

Exchange Ticker RIC SEDOL ISIN Valoren WKN CCY Listing Date
LSE NATO LN NATO.L BP6N0Z2 IE000OJ5TQP4 - - USD 04/07/2023
LSE NATP LN NATP.L BP6N104 IE000OJ5TQP4 - - GBP 04/07/2023
Borsa Italiana NATO IM NATO.MI BMBR649 IE000OJ5TQP4 - - EUR 14/07/2023
Xetra ASWC GY ASWC.DE BMBR650 IE000OJ5TQP4 - A3EB9T EUR 04/07/2023
SIX NATO SW NATO.S BRXJS97 IE000OJ5TQP4 127984260 - CHF 11/01/2024
Euronext Paris NATO FP NATO.PA BQRGHW3 IE000OJ5TQP4 - - EUR 22/02/2024

How to Buy NATO

HANetf funds are available to buy through self-directed platforms and brokers, and intermediary platforms across Europe listed in the link below. If you would like more information on how to trade with APs/market makers, please contact our Capital Markets Team at [email protected]

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