ETF Evaluator: Xtrackers Europe Defense TechnologiesETF () Follow This ETF

Xtrackers Europe Defense TechnologiesETF Overview

Xtrackers Europe Defense TechnologiesETF (XDEF) is a passively managed Sector Equity Industrials exchange-traded fund (ETF). Xtrackers launched the ETF in 2026.

The investment seeks investment results that correspond generally to the performance, before fees and expenses, of the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. The fund, using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the STOXX Europe Total Market Defence, Space and Cybersecurity Innovation 50-25 Index. The underlying index seeks to capture the performance of European listed equity securities with established revenue and/or patent exposures to the defense, space and cybersecurity sectors. The fund is non-diversified.

About Xtrackers Europe Defense TechnologiesETF (XDEF)

There are 4 members of the management team with an average tenure of 0.45 years: Patrick Dwyer (2026), Shlomo Bassous (2026), Ashif Shaikh (2026) and Daniel Park (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: STOXX Eur TM Def and Sp&Cyb In 50-25 TR USD index with a weighting of 100%. Xtrackers Europe Defense TechnologiesETF has 46 securities in its portfolio. The top 10 holdings constitute 63.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Xtrackers Europe Defense TechnologiesETF is part of the Equity global asset class and is within the Sector Equity ETF group. Xtrackers Europe Defense TechnologiesETF has 99.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 99.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Xtrackers Europe Defense TechnologiesETF has 0.5% of the portfolio in cash.

Assets Under Management

The fund has $4 million in total assets, which is below the $1 billion average for the Industrials category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

XDEF Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Xtrackers Europe Defense TechnologiesETF expense ratio is below average compared to funds in the Industrials category. Xtrackers Europe Defense TechnologiesETF has an expense ratio of 0.35%, which is 31% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Xtrackers Europe Defense TechnologiesETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 40% for the Industrials category.

Recently, in the month of July 2026, Xtrackers Europe Defense TechnologiesETF returned 8.1%, which earned it a grade of A, as the Industrials category had an average return of -4.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Xtrackers Europe Defense TechnologiesETF has a trailing yield of 0.00%, which is below the 1.11% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

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