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European defense ETFs dip but rising budgets may offer buying opportunity

Market News
26 Jun 2026
ETF Trends
View Source
Bullish
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European defense stocks and ETFs, including the WisdomTree Europe Defense Fund (WDEF), have declined despite ongoing conflicts like Russia-Ukraine. However, rising defense budgets in Europe, driven by the need for stronger national security and insurance against broader conflicts, suggest potential growth ahead. Analysts note that valuations are becoming attractive, especially in Central and Northern Europe, where governments have more fiscal flexibility to increase spending. This could make WDEF a compelling option for investors seeking exposure to European defense amid geopolitical tensions.

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