BlackRock and STOXX Collaborate to Launch BlackRock’s European Defence ETF for European Investors

ZUG (May 28, 2025) — STOXX Ltd., part of the ISS STOXX group of companies, today announced its expanding collaboration with BlackRock, with BlackRock’s launch of the iShares Europe Defence UCITS ETF (DFEU), which tracks the STOXX^® Europe Targeted Defence index. The fund is designed to provide precise exposure to European defence companies through a revenue-based selection at a time when European nations are increasing government spending to enhance their defence capabilities.

• New ETF offers precise exposure to European companies expected to benefit from long-term structural tailwinds for the defence theme
• The fund answers the demand from investors for exposure to Europe’s efforts to strengthen its security and strategic autonomy
• Lists on Euronext Amsterdam and Xetra stock exchange today

As Europe moves to rewire its security architecture and increase resilience, investors have been seeking ways to align their portfolios to national policies and the opportunity presented by the sector.

SIPRI research indicates that NATO, ex-US, increased spending by $68bn, or 19%, in 2022-2023 and that all NATO members boosted their military expenditure in 2024.^[1]The European Commission has also called for an increase in defence spending that will be “made in Europe”, to ensure long-term security and economic benefits for European countries.^[2] The proposals lift European budgets by an additional EUR 650 billion of fiscal space over four years. Against this backdrop, the United Kingdom and European Union signed a Security and Defence Partnership on 19 May 2025.

BlackRock research on a sample of EMEA based portfolios shows that, only 2% of portfolios have an explicit allocation to defence – and that allocation averages below 1.6%.

Our European clients have consistently expressed demand for European defence exposure in recent months.  Many European countries are set to increase defence spending, working together and prioritising European companies.

“BlackRock is providing investors precise exposure to European defence as well as bringing capital to Europe that supports local industry and the strategic objectives of European countries. This new launch provides clients with a necessary toolkit to precisely express granular views and access the long-term structural tailwinds presented by the defence theme.”

At STOXX, we are committed to developing index solutions that respond to the evolving strategic priorities of Europe. Our new STOXX Europe Targeted Defence index reflects this mission by providing a transparent, rules-based approach to selecting companies that contribute to Europe’s defence and security.

By integrating our high quality Military Equipment revenue data for selection and weighting of companies active in the Defence industry, the index showcases the unique synergies of ISS STOXX, where data, insight and index innovation come together to serve the evolving needs of the market.”

The STOXX^® Europe Targeted Defence index screens out companies active in Controversial Weapons (such as cluster munitions, anti-personnel mines, and chemical and biological weapons) as those are in violation of UNGC rules.  The index’s parent universe is the STOXX Europe All Country All Cap index and its methodology selects constituents based on military equipment revenue using Institutional Shareholder Services Inc. research.

DFEU has a TER of 35bps and is categorised as Article 6 under SFDR.

Notes

^[1] Stockholm International Peace Research Institute (SIPRI), as of 28 April 2025

^[2] European Commission White paper for European defence – Readiness 2030

About STOXX 
STOXX® and DAX® indices comprise a global and comprehensive family of more than 18,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50®, STOXX® Europe 600 and DAX®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation. stoxx.com 

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.