Last week, when Russian drones intruded on Polish airspace, Poland responded by taking them down, the first time a NATO member struck since the Russia-Ukraine war began. This move rattled defense ministers as well as Wall Street. Investors piled into defense ETFs, betting that more aerial violations and NATO escalations will keep fueling military spending for years to come.
The Select STOXX Europe Aerospace & Defense ETF (BATS:EUAD) was the largest gainer, rising 7% since the Sept. 9 incident. In contrast with its U.S. competitors, EUAD’s Europe-centric approach directly draws from the defense ramp-up in the region.
