STOXX Ltd has deepened its collaboration with DWS, marking a significant step in the financial sector’s engagement with Europe’s burgeoning defence and security technology landscape. DWS has launched its Xtrackers Europe Defence Technologies UCITS ETF, which tracks the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation index. This move comes as Europe undertakes a sweeping upgrade of its military capabilities, driven by heightened geopolitical tensions and a renewed focus on strategic autonomy.
The STOXX index, part of its Thematics series, is designed to capture the performance of companies with existing revenues and patents in defence, space, and cybersecurity. It covers established suppliers of traditional military equipment, advanced defence systems, and emerging innovators poised to shape the future of these sectors.
A key aspect of the index’s methodology is its reliance on registered patents as a tool to identify companies with strong commercial potential. “Registered patents that can be processed in a systematic manner represent one of the best tools at hand to identify companies that have the potential to be leading commercial actors in their field in coming years,” STOXX writes. This approach ensures that the index captures not just current market leaders but also those likely to drive future innovation.
The timing of this ETF launch is particularly noteworthy. The STOXX Europe Total Market Defence, Space and Cybersecurity Innovation index has surged 72% in 2025, building on an average annual increase of 29% over the past four years. This performance underscores the growing investor interest in the defence and security technology sectors, as Europe accelerates its efforts to modernise its military capabilities.
Axel Lomholt, General Manager of STOXX, emphasised the index’s innovative approach: “The STOXX Europe Total Market Defence Space and Cybersecurity Innovation index innovatively combines revenues- and patents-based stock selection methodologies, capturing companies across the spectrum and life cycle of the targeted themes.”
Michael Mohr, Global Head of Xtrackers Product, highlighted the ETF’s strategic relevance: “Our new ETF offers an opportunity to invest in companies that can benefit from the growing momentum of the European defence sector, applying a diversified approach that also includes providers of space technology and cybersecurity, which are essential for modern defence systems.”
The launch of this ETF reflects a broader trend in the financial sector, where investors are increasingly recognising the importance of defence, space, and cybersecurity technologies in shaping global security dynamics. As Europe ramps up its defence investments, this ETF provides a structured way for investors to gain exposure to companies at the forefront of these critical sectors.
The collaboration between STOXX and DWS also signals a growing alignment between financial innovation and defence strategy. By leveraging patent data and revenue performance, the index offers a comprehensive view of the companies driving technological advancements in defence, space, and cybersecurity. This approach not only benefits investors but also supports the broader goal of strengthening Europe’s defence capabilities.
As Europe continues to prioritise its security infrastructure, the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation index and the Xtrackers ETF tracking it are poised to play a pivotal role in channeling investment towards the companies that will define the future of European defence. This development underscores the interconnectedness of financial markets and geopolitical strategy, highlighting the critical role of innovation in shaping the security landscape of tomorrow.