The Arms Sector on the Stock Exchange. Download Free Ebook

The war in Ukraine has been going on for over three years, and the promises made by Donald Trump during his presidential campaign to quickly end the conflict have so far remained unfulfilled. In the face of growing geopolitical tensions, Europe is intensifying its efforts to increase its own defense capabilities. Excluding defense spending from the European Union's fiscal rules is one of the pillars of the plan, which, according to the European Commission, could mobilize an amount of around EUR 800 billion for security investments. About the potential beneficiaries of the new program, as well as the most interesting companies in the defense sector in free ebook analysts write XTB.

The conflict in Ukraine began over 3 years ago, tensions in the Middle East are growing, and the situation between the US and China is also intensifying. The situation in the world means that many countries must focus more on their defence and increase spending in this area. (…) armaments – not only in Europe – are in full swing, and it is fair to ask which listed companies will benefit from this. Especially large expenditures are planned by European governments, so we will focus mainly on companies from the Old Continent – ​​but not only. Although the United States probably has the most extensive defence industry in the world, a large number of significant companies that can benefit from the current trend are located in Europe.

Which companies will benefit the most from arms buildup?

Growing European defense budgets not only secure the future of millions of people across the continent, but also mean interesting prospects for investors. According to the latest data, global defense spending has almost doubled over the past two decades, reaching a value of around $2,3 trillion. Arms companies from Europe are particularly benefiting from this trend - of the 100 largest defense companies in the world, as many as 20 come from the Old Continent.

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• How do geopolitics influence the development of the arms industry?
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Companies such as Germany's Rheinmetall and the British giant BAE Systems have recorded impressive revenue growth in recent years. The former is a leader on the German market, taking advantage of the current economic situation by expanding its production capacity in Europe and planning expansion into American and Eastern European markets. In turn, the British BAE Systems is the largest European arms manufacturer, strengthening its position through the development of innovative military technologies, such as Eurofighter Typhoon fighters, combat drones and advanced electronic systems.

Take advantage of the potential of the arms sector - commission-free at XTB

The defense sector has become one of the hottest investment topics in recent years, and there are many indications that it will remain in the spotlight for a long time. According to NATO data, most members of the pact will reach or exceed the 2025% GDP defense target by the end of 2, significantly increasing their budgets for purchasing modern military equipment. The obvious beneficiary of this spending will be companies in the arms sector, which XTB analysts write about in their latest free e-book.

Investors interested in the arms sector have a wide range of investment opportunities at their disposal, which they can implement directly in the XTB application. Thanks to it, they gain access to over 5300 shares and ETFs, including sector funds such as ASWC.DE or DFEN.DE, enabling exposure to European and American companies in the defense sector. With the XTB application, investors can buy shares and ETFs without commission* up to a monthly turnover of EUR 100.

*0% commission up to a monthly turnover of EUR 100. Transactions above this limit will be charged a commission of 0,2% (min. 10 EUR). A 0,5% currency conversion fee may apply. The financial instruments offered are risky. Invest responsibly.