Global X Defense Tech ETF falls 20% despite rising NATO defense budgets, offering a buy-the-dip opportunity.

The Global X Defense Tech ETF (SHLD) has dropped about 20% from its spring peak, even as NATO countries increase defense spending to historic levels. SHLD holds a diverse mix of US and international defense companies, including European manufacturers, capturing the global rearmament trend. While it lags behind US-focused defense ETFs like ITA and XAR, SHLD offers unique exposure to emerging defense tech such as drones and AI software. Investors may consider SHLD as a thematic addition for growth, betting on continued global military budget increases despite recent pullbacks and geopolitical risks.