HANetf positions European defence ETF for Article 8 move
HANetf is positioning its Future of European Defence UCITS ETF (ticker: ARMY) to qualify for an Article 8 classification under the Sustainable Finance Disclosure Regulation (SFDR) aligning with investor interest to access defence companies in a responsible way.
The company has applied to change the underlying index of ARMY from the VettaFi Future of Defence Ex US index to the VettaFi European Future of Defence Screened index. The new index restricts companies headquartered in European NATO countries, focusing the portfolio on Europe’s defence industrial base, and introduces strict exclusions covering controversial weapons. It also retains revenue screening and single stock caps to provide pure-play, diversified exposure to the European defence theme, the group said.
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Hector McNeil, co-founder and co-ceo of HANetf, commented: “We’re very pleased to be taking this step to align our ARMY ETF with SFDR Article 8. This represents another important milestone in the evolution of defence investing in Europe. Investors increasingly recognise that security and sustainability are not opposing forces — they are interlinked. A well-equipped and responsibly governed defence sector is essential to maintaining peace, stability and the rule of law.
“By adopting a more focused, screened index, we aim to give investors confidence that their capital supports Europe’s legitimate defence capabilities while adhering to robust responsibility standards. Importantly, these enhancements also make the ETF more accessible to investors in regions where exposure to certain defence-related activities has previously been restricted, widening the opportunity to participate in Europe’s defence modernisation.”
HANetf launches its first Future of Defence UCITS ETF in 2023 and it now has $3.13bn in assets under management.
The group added ARMY will be the first defence ETF in Europe with an Article 8 status once the changes are made.
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