European defense stocks investment opportunities are red-hot right now, with specific companies poised for major gains. Top European defense stocks investment picks include Italy’s Leonardo, France’s Thales, and Sweden’s Saab – all major holdings in leading European defense ETFs. The STOXX Europe Aerospace & Defense index has surged 52% this year, and analysts say these European defense stocks investment plays are just getting started.
Trump’s meeting with Putin is a win-win for European defense stocks, no matter the outcome https://t.co/GsDhHc2CKW
— CNBC (@CNBC) August 14, 2025
European Defense ETFs Surge Amid Trump-Putin Summit Talks
VanEck’s Defense ETF performance showcases the best European defense stocks investment opportunities, with Leonardo, Thales, and Saab as top holdings in the $6.9 billion fund. German arms manufacturer Rheinmetall has gained 160% this year, making it another standout European defense stocks investment. The STOXX Europe Aerospace & Defense index includes these powerhouse companies driving the European defense spending surge.
Dmitrii Ponomarev from VanEck EU stated:
“No firm would add that much capacity if it depended only on Ukraine shipments; the bigger driver is NATO Europe’s pivot to modernization and restocking under the new 5% of GDP long-term goal.”
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Top European Defense Stocks Investment Picks
- Leonardo (Italy) – Major VanEck Defense ETF performance driver
- Thales (France) – Key European defense ETFs holding
- Saab (Sweden) – More than doubled in value this year
- Rheinmetall (Germany) – Up 160% despite recent earnings volatility
Christopher Granville, managing director of TS Lombard, had this to say:
“My call on European defense stocks since about 2023 has been buy on any weakness, on any temporary pullback, because this is a win-win for European defense stocks.”
The European defense spending surge benefits these specific companies as arms production expands at three times peacetime rates.
Why These European Defense ETFs Holdings Will Keep Rising
Micael Johansson, CEO of Saab, stated:
“I have a hard time seeing, after all that happened with the invasion in Ukraine and the aggressive neighbor that we have to the east, that governments would step back and say it’s over.”
The STOXX Europe Aerospace & Defense index tracks these exact companies, with Hensoldt, Renk, and other European stocks opportunities also showing massive gains. This European defense spending surge creates a decade-long opportunity for savvy investors targeting these specific stocks.
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