US investors boost defence exposure as global wars fuel spending boom
Trend reverses prior hesitance over arms investments because of slow growth and perceived conflict with ESG standards
Trend reverses prior hesitance over arms investments because of slow growth and perceived conflict with ESG standards

Production bottlenecks and uncertainty over US munitions funding weigh on stock prices for weapons makers

Investors risk being too complacent about war in the Middle East

Sector increases investment and rewards investors after surge in global military spending following Ukraine war

The growth profile for the sector has brightened as Europe’s governments prepare to spend more on protection

Fund’s research tempers claims by European governments that bigger military budgets should revitalise their economies

Interest in AI and defence tech start-ups has boosted investor activity after a prolonged slowdown