ARMR - Betashares Global Defence ETF

[frugal.rock]

Overview.

Fund objective

ARMR aims to track the performance of an index (before fees and expenses) that provides exposure to leading companies involved in the global defence sector.

Benefits
Access the global defence sector

ARMR provides exposure to up to 60 leading companies which derive more than 50% of their revenues from the development and manufacturing of military and defence equipment, as well as defence technology, including Lockheed Martin, BAE Systems, General Dynamics and Palantir Technologies.

Exposure to NATO-aligned countries

ARMR only holds global companies headquartered in NATO member and major NATO ally countries (such as Australia, Japan, and South Korea).
Exposure to rising global spending in defence and security

Global defence and security spending has significantly accelerated in response to evolving geopolitical risks, technological advancements, and the growing complexity of modern threats. This is projected to continue for the forseeable future as nations seek to strengthen their strategic defences.

No assurance is given that any of the companies in the fund’s portfolio will remain in the portfolio or will be profitable investments.

Global Defence ETF

Invest in leading global defense companies. Invest in ARMR through Betashares Direct with zero brokerage. Other costs may apply.

www.betashares.com.au

 

[Dona Ferentes]

Units outstanding* (#)	800,000
Management fee and cost** (p.a.)	0.55%

.
pretty low AUM, but only been around for 3 months

 

[Garpal Gumnut]

This does not appear all that attractive, no distributions planned, probably bought many of those stocks in the portfolio somewhere close to highs or they are yappers, and fees are a bit opaque.

gg

 

[Dona Ferentes]

This does not appear all that attractive, no distributions planned, probably bought many of those stocks in the portfolio somewhere close to highs or they are yappers, and fees are a bit opaque.

gg

@peter2 is spot on: I think the 'thematic ETF' label, often signalling the top, would apply.

 

[Garpal Gumnut]

@peter2 is spot on: I think the 'thematic ETF' label, often signalling the top, would apply.

Thanks for the reminder. I remember that post of @peter2 . One of the values of being on ASF. Being able to see other's posts and being reminded of such as that.

gg

 

[frugal.rock]

I just thought I'd put up charts of DFND upper and ARMR lower over the last 6 months. Both are up about 30% in 6 months with some selling over the last few days on spike up in to overbought territory.

View attachment 195025

View attachment 195026

gg

Industries of War.
Ugly, but profitable.
Just ask Beazley, the fat encased by fat sausage roll guy.

Critics slam weapons makers' war memorial funding as 'disgusting'

The national symbol for Australia's fallen soldiers has taken large sums of money from weapons makers, a move former staff call "inappropriate".

www.abc.net.au

 

[divs4ever]

This does not appear all that attractive, no distributions planned, probably bought many of those stocks in the portfolio somewhere close to highs or they are yappers, and fees are a bit opaque.

gg

well there is a trend ( that i do NOT follow ) of investing in stocks where the share price rises rapidly despite the probability that profits are years away ( and dividends even further away

'buy-now-pay-later ' comes straight to mind but there have been similar trends elsewhere ( like 'AI' )

 

[Sean K]

I might have to put this on the shopping list. With everyone needing to become self sufficient across the globe, this might go OK.

 

[Sean K]

Members might be correct about the thematic ETF trend. Once a sector has gone for a run, the financial institutions see an opportunity and jump on the bandwagon.

Looking at the top holdings, most of them have done very well since the wars started and Europe started re-arming for the next one.

Maybe until the EU has gone to 3% spending on defence and it growth stabilizes will these companies slow down. That might be a little way off. Maybe five years, pending what happens with Russia and China.

But, the US is still probably the biggest customer. Not sure if they're reducing or increasing spending at the moment after Trump came in.

 

[Sean K]

I was slightly cautious about this thinking they might have jumped on the theme a bit late but I did like the medium term logic of it. Things only seem to be getting worse out there with no end in sight for Ukraine, Israel now wanting to completely occupy Gaza and Pakistan and India throwing stones at each other. Going forward, it seems inevitable that Taiwan lights up. All of Europe is re-arming and they've only just started.

And, this just keeps going up.

 

[Sean K]

With all the crap going on around the world, companies owned by this ETF have been having a great run.

I suppose if peace breaks out around the world this won't go so well, but things are looking grim on multiple fronts. Our own ALP might actually have to start developing short term capability instead of gutting the ADF short term to pay for the boats down the track, if we even get them.

 

[Sean K]

Been consolidating for a bit and looks likely to break up through this red line at some point.

I'm wondering how long the defence thematic has to run.

Maybe until NATO in the EU gets to 5% GDP which is going to take some time. Probably a slow burn for 5 years or so. SE Asia is going to have to significantly increase spending as well in the next few years to deter China from taking any more of the SCS and Taiwan. So, maybe this is a 5-10 year play.