Global X has announced that it is bringing its Defense Tech ETF, under the ASX symbol DTEC, to Australian shores.

The offering, which has been listed on the NYSE Arca since 2023. under the symbol SHLD, has over $540 million in net assets and seeks to invest in companies that are positioned to benefit from the increased adoption and use of defense technologies.

This includes companies that build hardware such as robotics and aircraft for defense applications, manage cybersecurity systems, and use big data and artificial intelligence.

In a market update on Tuesday, Global X explained that DTEC will give Australian investors the same exposure to companies "at the forefront of defense innovation".

"As global defense spending increases and security concerns shift towards more technology-driven solutions, DTEC covers the key sectors driving the future of defence, including AI, drones and cyber security," said the fund manager.

This will mark Global X's 41st offering in the local market, following the launch of the Global X S&P World Ex-Australia GARP ETF (ASX: GARP) just last week.

The announcement also comes a month after investment manager VanEck launched its own hedge ETF (ASX: DFND), which is believed to be the first hedge ETF on the ASX.

Unveiling the fund, Ariane Neuron, CEO and Managing Director of VanEck Asia-Pacific, noted that the world has unfortunately moved on from the days of "celebrating the peace dividend".

"While countries have been extolling the economic benefits of reduced defense spending, they are increasing military spending," he said.

"Investors are adjusting to the likely reality that this will continue to rise in the coming years."

Previously a 2023 report. of the Stockholm International Peace Research Institute showed that global military spending rose 7 percent to $2.43 trillion, the sharpest annual increase since 2009. this way.

By 2030 the industry is expected to grow nearly 40 percent to US$3.1 trillion.