Defense Sector ETFs See Impressive Growth

Amid heightened tensions between India and Pakistan, defense sector-based Exchange-Traded Funds (ETFs) have surged, with returns up to 7% in the past two weeks. This remarkable growth is attributed to increased investor interest in defense stocks, known for their resilience during geopolitical instability.

Leading ETFs and Their Performance

The Groww Nifty India Defence ETF and Motilal Oswal Nifty India Defence ETF have delivered solid returns of 6.73% and 6.74%, respectively. Notably, the Groww Nifty India Defence ETF Fund of Funds (FoF) outperformed with a 7.10% gain.

Benchmark and Government Meetings

These ETFs are benchmarked against the Nifty India Defence TRI, which saw a 6.75% increase. Optimism around military procurement and defense sector growth has been sparked by upcoming meetings between the Indian government and defense manufacturers.

Recent and Long-Term Performance

In the past week, defense ETFs posted modest gains of up to 1%, but their three-month performance is more substantial, with returns reaching up to 19.56%. The Motilal Oswal Nifty India Defence ETF led with 19.56%, closely followed by the Groww Nifty India Defence ETF at 19.24%.