VanEck has announced the upcoming launch of a new ETF on the ASX, the VanEck Global Defense ETF (ASX: DFND).

InvestorDaily understands that the ETF is due to launch on September 12.

In a brief market update this week, VanEck said: “We believe this is an opportunity for investors that is not readily available on the ASX.”

The fund manager emphasized that defense companies offer portfolio stability due to mandatory global government spending and the ongoing geopolitical environment that is driving increased spending. Moreover, the constant growth of the defense industry and technological advancements in various regions make it a reliable investment.

In June, VanEck announced the addition of four new employees to its Australian business in a bid to increase its market share among financial advisors and institutional investors.

At the time, Ariane Neuron, VanEck's CEO and managing director for APAC, said: "Demand is increasing as advisors become more familiar with the opportunities our investment strategies bring."

"However, there is still a lot of room for growth. ETFs currently make up only a small fraction of Australia's total $4.75 trillion in funds under management.

"Our market-leading ETF strategies have the potential to capture a much larger piece of the pie, and our new hires will help strengthen our efforts to achieve that growth."