"EUAD surged 55% by mid-May 2025, becoming the best-performing non-leveraged US-listed ETF in 2025, then climbed roughly 75% year-to-date by early July 2025."
"The single largest driver for EUAD over the next 12 months is whether European governments disburse promised funds, particularly through the EU's €800 billion ReArm Europe program."
"If Rheinmetall, BAE, and Airbus Defence book-to-bill ratios stay above 1.5x through their next two reporting cycles, EUAD's earnings base expands."
The Select STOXX Europe Aerospace & Defense ETF (NASDAQ: EUAD) launched in October 2024, allowing U.S. investors to access European defense stocks easily. By mid-May 2025, EUAD surged 55%, becoming the top-performing non-leveraged U.S. ETF. However, by late April 2026, the fund faced a 3% decline year-to-date despite a one-year return of 14%. The future performance hinges on European governments fulfilling defense budget commitments, with key indicators being contract awards and budget execution rates.
Read at 24/7 Wall St.
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