First Trust, a provider of exchange-traded funds (ETFs) and solutions, today unveiled the launch of the First Trust Indxx Global Aerospace & Defence UCITS ETF (MISL) on the London Stock Exchange, expanding its thematic family of UCITS ETFs to European investors.
MISL is designed to provide investors with a liquid, transparent, and cost-efficient way to capture exposure to companies involved in advanced and traditional aerospace and defence.
In collaboration with Indxx, the fund is designed to provide exposure to global companies that derive at least 50% of their revenues from the traditional and advanced aerospace or defence sub-themes. Aerospace is largely comprised of companies involved in the production, sale, and service of commercial aircraft. Defence is dependent on a nation’s need for military weapons and systems designed to operate on land, sea, and in the air.
The top 50 ‘Pure-Play’ companies by market capitalisation form the final index subject to a 4.5% single security cap. Aerospace and defence technologies are integral to the efficiency and effectiveness of military operations, which in turn affect economic security and national defence.
Rahul Sen Sharma, president and Co-CEO at Indxx said: “The significant increase in geopolitical tensions highlighted by the Russia-Ukraine war and the Israel-Palestine conflict has led to a surge in military spending globally.
"In 2023, global defence expenditures reached approximately $2.44 trillion, with the US, China, Russia, India, and Saudi Arabia collectively accounting for nearly 61% of this spending.1 Fuelled by this global military expenditure, the demand for advanced defence technologies and capabilities has also increased.
"Our Global Advanced Aerospace and Defence Index is designed to provide targeted exposure to the top companies in this sector, enabling investors to capitalise on this trend. We are pleased to partner with First Trust to introduce this investment strategy to the European market.”
Rupert Haddon, managing director at First Trust Global Portfolios said: “We are delighted to partner with Indxx to bring the First Trust Indxx Global Aerospace & Defence UCITS ETF to the market, giving investors the chance to tap into this sadly pivotal global theme through a cost-effective, highly liquid UCITS investment vehicle.”
This latest addition brings First Trust’s total UCITS ETF offerings to 36, encompassing single-country, regional, and global strategies across equity, fixed income, and thematic sectors.
