WisdomTree has expanded its range of exchange-traded products (ETP) with the launch of the first leveraged European defence ETP.

The WisdomTree STOXX Europe Aerospace & Defence 3x Leveraged ETP (3EDF) has been listed on the London Stock Exchange, Börse Xetra, and Borsa Italiana with a total expense ratio (TER) of 0.80 per cent.

The short & leveraged (S&L) ETP provides 3x daily leveraged exposure to the STOXX Europe Total Market Aerospace & Defence Net Total Return Index.

WisdomTree highlighted that Europe was accelerating its defence spending amid rising geopolitical uncertainty that was forcing greater military self-reliance.

The launch of 3EDF follows the introduction of the WisdomTree Europe Defence UCITS ETF (WDEF) in March 2025, which is designed to provide exposure to European companies in the defence sector.

These include manufacturers of civil defence equipment, parts or products, defence electronics and space defence equipment.

“S&L ETPs allow investors to express high conviction market views, which, when used correctly, can help increase short-term returns or hedge the overall portfolio,” commented WisdomTree head of research, Europe, Pierre Debru.

“We have launched this exposure to offer investors a new efficient tool to trade European defence equities tactically.”

WisdomTree CEO, Europe, Alexis Marinof, added: “As geopolitical tensions increase worldwide and Europe grapples with the possibility of reduced support from the US, defence and security are more critical than ever.

“As the European leader in short and leveraged ETPs, we have a commitment to offer investors a broad range of differentiated exposures to help them navigate markets.”

WisdomTree’s S&L ETP range has more than $2bn in assets under management, consisting of over 100 ETPs in Europe.

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