ARMR vs DFND vs DTEC: ASX Defence ETFs Compared (2026)

Quick answer: There are three defence ETFs on the ASX, all launched within a month of each other in late 2024. DTEC (Global X) is the cheapest at 0.50% a year. ARMR (BetaShares, 0.55%) holds only companies from NATO and major-ally countries and has the most US exposure, at about 62%. DFND (VanEck, 0.65%) is the largest and the most spread across Asia and Europe, and VanEck says it is the only one that screens out controversial weapons. All three fell 12–18% in the year to September 2026, after a very strong 2024–25.

The three ASX defence ETFs side by side

	ARMR	DFND	DTEC
Issuer	BetaShares	VanEck	Global X
Management fee	0.55% p.a.	0.65% p.a.	0.50% p.a.
Index	VettaFi Global Defence Leaders	MarketVector Global Defence Industry (AUD)	Global X Defense Tech
Holdings	Up to 60	44	49
Fund size	A$217m (15 Oct 2026)	A$244m (Sept 2026)	A$113m (15 Oct 2026)
Launched	2 Oct 2024	10 Sept 2024	7 Oct 2024
US share	61.9%	46.7%	Not published on fact sheet
Largest holding	Palantir 9.7%	Palantir 8.9%	Palantir 11.8%
1-year return to 30 Sept 2026	−12.3%	−15.0%	−17.6%
Currency hedged	No	No	No

Sources: BetaShares ARMR page, VanEck DFND fact sheet, Sept 2026, Global X DTEC fact sheet, Sept 2026 and DTEC fund page. Returns are after fees.

DTEC (Global X)0.5% p.a.

ARMR (BetaShares)0.55% p.a.

DFND (VanEck)0.65% p.a.

The fee gap is $15 a year per $10,000 between DTEC and DFND. With all three funds falling 12–18% over the last year, and their weightings differing more than their fees, the index rules below matter more than the fee.

What each fund lets in

All three are "defence" funds, but their entry rules produce noticeably different portfolios.

ARMR: NATO and allies only. Companies must earn more than 50% of their revenue from developing and manufacturing military and defence equipment, and be headquartered in a NATO member or major NATO ally country. That makes it the most US-heavy of the three (61.9%), with the big US prime contractors near the top: Lockheed Martin 8.4%, General Dynamics 7.9%, Raytheon 7.8%, Northrop Grumman 6.8%. It's then followed by Europe's Safran, BAE Systems and Rheinmetall.

DFND: broader country mix, with weapons screens. DFND's index also requires more than 50% of revenue from defence, according to VanEck. Its country spread is the widest: US 46.7%, South Korea 11.7%, France 9.3%, Israel 6.7%, Sweden 5.8%, Italy 5.7%, Norway 4.2% and Singapore 3.8%, per its September fact sheet. Its top holdings include Korea's Hanwha Aerospace, Israel's Elbit Systems and Singapore Technologies Engineering, which ARMR's rules mostly keep out or keep small. VanEck says DFND excludes companies involved in controversial weapons (such as white phosphorus and depleted uranium) and those that breach UN Global Compact norms, and that no other ASX defence ETF applies these screens. BetaShares' fund page doesn't mention an equivalent screen for ARMR.

DTEC: defence technology, modified weights. DTEC's index looks for companies earning a significant proportion of revenue from defence technology: AI, cyber, drones, sensors, space launch and military platforms. It caps any single company at 8% when it rebalances, then trims the largest names further. It allows developed and emerging markets but excludes companies listed in China (A and B shares), India, Kuwait, Pakistan, Russia and Saudi Arabia. Despite the "tech" name, its top 10 at 30 September 2026 was mostly the same prime contractors: Palantir, BAE Systems, RTX, General Dynamics, Lockheed Martin and Northrop Grumman.

The overlap is large

Palantir is the biggest holding in all three, at 8.9–11.8%. The large US and European primes appear in each. If you're choosing one, the real differences are the US weighting (highest in ARMR), Asian and Israeli exposure (highest in DFND), and the weapons screens (DFND only, per VanEck). Holding two of them mostly doubles up.

Returns and risk

The three funds launched just before a sharp rally. To 30 September 2026, ARMR's return since its October 2024 launch was 24.59% a year, and DFND's was 29.03% a year. The last 12 months went the other way: −12.3% (ARMR), −15.0% (DFND) and −17.6% (DTEC).

That swing is typical of a single-sector fund. Defence shares respond to government budgets, conflicts and ceasefire news, and Palantir alone makes up around a tenth of each fund. Most investors who hold a sector ETF keep it as a small slice beside a diversified core. Use the ETF Calculator to see how a 5% position behaves inside a whole portfolio.

All three are Australian-domiciled and unhedged. That means no W-8BEN form and no US estate tax issue, but your returns move with the Australian dollar. Gains are taxed under normal CGT rules: the 50% discount applies to gains up to 30 June 2027 for units held over 12 months, and indexation applies from 1 July 2027 under the 2027 CGT changes. The Capital Gains Tax Calculator estimates the tax on a sale.

An ethical note

Defence companies are among the first exclusions in most ethical funds and ETFs. If you also invest through an ethical super option or ethical ETF, a defence ETF works against that screen. See ethical super funds compared for what those options typically exclude.

Which one suits which investor

• DTEC if fee is your main tiebreaker and you're comfortable with the smallest fund (A$113m).
• ARMR if you want exposure focused on NATO and allied countries and the large US contractors.
• DFND if you want the widest country spread, including Korea and Israel, and the controversial-weapons and UN Global Compact screens VanEck describes, at the highest fee of the three.

Frequently asked questions

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This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.