According to the latest performance rankings, overseas thematic ETFs have shown strong performance, with Yuanta Aerospace Defense Tech (00965) benefiting from escalating geopolitical risks. Today, the stock price surged to 19.09元, marking an impressive gain of 30.65%.

Among the 20 newly launched Taiwan and multinational stock ETFs in 2024, 00965 stands out with a 28.7% increase this year. In comparison, China Trust Global High Dividend (00963), China Trust Japan Trading Companies (00955), and Fuhwa Japan Leaders (00949) saw increases of around 1.7%, while the remaining 16 funds experienced negative returns.

According to fund manager Chen Wenqing from China Trust, 00963 focuses on six developed markets: the US, UK, Germany, France, Japan, and Singapore, with constituent stocks that exhibit solid market cap and liquidity, making them suitable for resisting short-term market fluctuations. European markets have performed better than US markets this year, with Germany benefiting from an expansionary fiscal policy, setting new historical highs.

In light of ongoing geopolitical conflicts, countries are increasing their defense budgets, with NATO agreeing to raise its defense spending standard from 2% to 3.5% of GDP. This backdrop will likely drive potential profit growth for military stocks.

In the long term, stable demand from governments is expected to support the military industry, and investors are advised to consider pairing it with tech stocks to diversify their portfolio and mitigate concentrated risks.