Slide 1: WisdomTree Europe Defense Fund (WDEF)
June 2026 WisdomTree Europe Defense Fund (WDEF)
Slide 2: WisdomTree Europe Defense Fund (WDEF)
WisdomTree Europe Defense Fund (WDEF) + The WisdomTree Europe Defense Fund (WDEF) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe Defense Index. Key Fund Facts Index WisdomTree Europe Defense Index Index Base Date 2/28/2025 Inception Date 7/17/2025
Slide 3: The Need for European Defense
The Need for European Defense WisdomTree Europe Defense Fund (WDEF) WisdomTree Europe Defense Fund (WDEF) 3
Slide 4: Rising Demand for European Defense Investments
Rising Demand for European Defense Investments Key Pillars Supporting the Rise in European Defense Spending NATO Commitments Geopolitical Tensions Technological Defense Industry Advancements Consolidation + NATO's evolving defense strategies + Concerns over potential U.S. + The need to invest in eme
Slide 5: European Defense in 2026: From Budgets to Execution
European Defense in 2026: From Budgets to Execution Peace Efforts Stall: Greenland & the Arctic: US Capital-Return Crackdown: Capacity Scaling Widens the Opportunity Set: “Higher for Longer” Gets Sovereignty Push and New Europe’s Relative Advantage Reinforced Capability Needs IPOs + Industrial Conve
Slide 6: Policy leaders' quotes on European defense
“Nothing is off the table.” Ursula von der Leyen President of the European Commission “We have, for at least a decade, felt a false sense of security... a total rebuilding of Germany's defense capabilities is needed.” Friedrich Merz Chancellor of Germany “You will not get there with the 2 percent.”
Slide 7: 'It may be a choice' between seizing Greenland or preserving NATO
'It may be a choice' between seizing Greenland or preserving NATO. “I don't need international law” Donald J. Trump President of the United States Source: Politico as of January 9th, 2026. WisdomTree Europe Defense Fund (WDEF) 7
Slide 8: The Arctic is growing in Strategic Importance
The Arctic is growing in Strategic Importance Strategic Rationale Limits to a “Deal” Narrative + Greenland is an excellent perch for tracking + The economic case for a deal granting the missile threats to the U.S., especially from U.S. “total access” is weak. Russia. + Greenland’s resources are expe
Slide 9: NATO Summit – Pressure on Europe Escalates
NATO Summit – Pressure on Europe Escalates The Bar is Being Raised + Heads of state and government of NATO nations, agreed on a new commitment to spend 5% of gross domestic product on defense by 2035. + This new pledge includes spending 3.5% on core defense items such as troops and weapons and 1.5%
Slide 10: European Governments are Raising their Defense Budgets
European Governments are Raising their Defense Budgets NATO Allies Defense Spending Following Russia’s Invasion of Ukraine 5% Defense Spending as Share of Real GDP (%) 2021 2024 4% 3% NATO 2% Guideline 2% 1% 0% Source: Atlantic Council, WisdomTree. 2024 numbers are estimates. Iceland excluded as it
Slide 11: NATO Allies Planning Major Increases in Defense Spending post-Summit
NATO Allies Panning Major Increases in Defense Spending post-Summit Source: NATO, WisdomTree as of 6/30/2025, Please note: Montenegro and North Macedonia have not added any new pledge. WisdomTree Europe Defense Fund (WDEF) 11
Slide 12: Shifting Goalposts
Multi-Year Budget Commitments Shifting Goalposts + NATO Secretary General Mark Rutte emphasized the necessity for member states to adopt a "wartime mindset," advocating for defense expenditures to rise "considerably more than 3 percent" of national GDP. + Poland's President Andrzej Duda has formally
Slide 13: European Defense Sector – Compound Annual Growth Rates (CAGR)
European Defense Sector – Compound Annual Growth Rates (CAGR) Improving European Defense Sector Fundamentals European Defense Sector - Growth Forecasts 18% + Following Russia’s invasion of Ukraine, growth in European defense spending over the 15.9% last two years has expanded order backlogs across t
Slide 14: U.S. Defense Spending is Now a Smaller Portion of Total Outlays
U.S. Defense Spending is Now a Smaller Portion of Total Outlays U.S. Defense is a Shrinking Portion of Expenditures Share of Federal Expenditures 90 + Federal outlays are pressured by debt and the deficit. Defense department resources are 80 being squeezed by other priorities. Share (%) of Federal E
Slide 15: The U.S. Outspends Europe on Defense Research & Development
The U.S. Outspends Europe on Defense Research & Development U.S. defense focus might shift inward as President 160 16% 20% 1 Trump pivots towards the Indo-Pacific and Middle East Spending on Defense Research & Development (US$ Billion) 18% 140 16% 120 14% European leaders are increasingly recognizin
Slide 16: European Defense Agency's Analysis of Defense Investment Gaps
European Defense Agency’s Analysis of Defense Investment Gaps Replenish Stockpiles, Especially for Ammunition Replace Existing Cold War Era Legacy Systems, such as Main Battle Tanks (MBT), Armored Fighting Vehicles, Infantry Fighting Vehicles (IFV), Armored Personnel Carriers, & Heavy Artillery Rein
Slide 17: European Defense Industrial Strategy (EDIS)
European Defense Industrial Strategy (EDIS) Objectives Up to 2030 – Responsibilities of Member States: 35% 50% 60% 40% Intra-EU Defense Trade Defense Investments Defense Sourcing Defense Equipment + Ensure the value of intra-EU defense + At least 50% of their defense + At least 60% of their defense
Slide 18: Trump's Hard Power Pivot
Trump’s Hard Power Pivot Why European Defense is Still the Cleaner Way to Play the Trump Calls for $1.5tril Military Budget in 2027 New Militarized World + President Donald Trump said the 2027 U.S. military budget should be US$1.5trn, US Defence (post Trump significantly higher than the US$901bn app
Slide 19: Germany Taking the Lead
Germany Taking the Lead Constitutional Amendments Facilitate Agreement on Federal Additional Defense Spending is Driving New Borrowing Budget + The Federal Minister of Finance is planning new federal debt of €143 billion, which is + Just under €82 billion in new debt is to be taken on this year, and
Slide 20: Index Methodology
Index Methodology WisdomTree Europe Defense Index WisdomTree Europe Defense Fund (WDEF) 20
Slide 21: Our Journey – WisdomTree Europe Defense Fund (WDEF)
Our Journey – WisdomTree Europe Defense Fund (WDEF) + The launch of the WisdomTree Europe Defense Fund aligns a significant increase in European defense spending, driven by geopolitical tensions and a desire for greater strategic autonomy, into an investable vehicle. The European Council has emphasi
Slide 22: WDEF – A New, Innovative ETF Dedicated to the European Defense Industry
WisdomTree Europe Defense Fund (WDEF) – A New, Innovative ETF Dedicated to the European Defense Industry Exclusive Focus on Stocks Weighted by European Defense Revenue-Adjusted Market Capitalization Signatories to the Treaty on the Non-Proliferation of Nuclear Weapons Source: WisdomTree WisdomTree E
Slide 23: WisdomTree Europe Defense Index
WisdomTree Europe Defense Index Companies are screened for the following eligibility requirements: + Market capitalization of at least $200 million Eligibility + 3-month median daily traded volume of at least $1 million Screen + Component companies must conduct their primary business activities and
Slide 24: Example: A Higher Weight for Rheinmetall Compared to Airbus
Example: A Higher Weight for Rheinmetall Compared to Airbus Market Cap USD $52.7 billion USD $175.92 billion High revenue exposure Low revenue exposure Defense Exposure ~70% ~20% Weight as of 6/30/2026 8.6% 5.3% Source: WisdomTree, Bloomberg, FactSet. Market cap data as of June 30th, 2026. Public co
Slide 25: Broader Defense Exposure versus a Concentrated European Aerospace & Defense Sector
WisdomTree Obtains Broader Defense Exposure versus a Concentrated European Aerospace & Defense Sector Top 5 Holdings in MSCI Europe Aerospace & Defense Index Exposure Score Breakdown Weight in Exposure Score by Holding Weight WisdomTree's Index WisdomTree Rolls-Royce Holdings plc 24.0% 5.5% 2 Safran
Slide 26: Higher European Revenue Exposure Compared to Other Defense Stock Indexes
WisdomTree Obtains Higher European Revenue Exposure Compared to Other Defense Stock Indexes Revenue Exposure Based on Constituents Source: WisdomTree, FactSet, as of 6/30/2026. "X" sign denotes the arithmetic average of the revenue exposure of the holdings. You cannot invest directly in an index Wis
Slide 27: Index is Less Reliant on U.S. Revenues
WisdomTree’s Index is Less Reliant on U.S. Revenues, Reflecting Greater Emphasis on Europe’s Defense Renaissance Revenue Exposure Based on Constituents Source: WisdomTree, FactSet, as of 6/30/2026. "X" sign denotes the arithmetic average of the revenue exposure of the holdings. You cannot invest dir
Slide 28: WisdomTree Europe Defense Index Composition
WisdomTree Europe Defense Index Composition Top 10 Holdings Country Breakdown Name Weight BAE Systems plc 10.1% Thales SA 10.0% Rheinmetall AG 8.6% Safran SA 5.6% Rolls-Royce Holdings plc 5.5% Airbus SE 5.3% Leonardo SpA 5.3% Saab AB Class B 5.1% Kongsberg Gruppen ASA 4.6% Dassault Aviation SA 4.1%
Slide 29: Fundamental Comparison Across Defense Strategies
Fundamental Comparison Across Defense Strategies Source: WisdomTree, FactSet, Bloomberg, as of 6/30/2026. Holdings of the peer indices were sourced from MSCI. Fundamentals were sourced from FactSet. PEG rations are based on forward P/E ratios and est. long term growth. You cannot invest directly in
Slide 30: Pure-Play Defense Strategy Improves Earnings Growth Prospects
WisdomTree’s Pure-Play Defense Strategy Improves Earnings Growth Prospects vs. Competitor Indexes Source: WisdomTree, FactSet, Bloomberg as of 6/30/2026. You cannot invest directly in an index. Earnings growth estimates may not be realized. WisdomTree Europe Defense Fund (WDEF) 30
Slide 31: WDEF – A New, Innovative ETF Dedicated to the European Defense Industry
WisdomTree Europe Defense Fund (WDEF) – A New, Innovative ETF Dedicated to the European Defense Industry Exclusive Focus on Captures the European Defense Underinvestment Gap Alignment with Targeted Exposure to Geopolitical Trends Key Players Source: WisdomTree WisdomTree Europe Defense Fund (WDEF) 3
Slide 32: Appendix
Appendix WisdomTree Europe Defense Fund (WDEF) 32
Slide 33: European Defense Stocks Continue to Outshine U.S. Counterparts
European Defense Stocks Continue to Outshine U.S. Counterparts Source: WisdomTree, Bloomberg as of 6/30/2026. Series begins in February 2022 to coincide with Russia’s invasion of Ukraine. You cannot invest directly in an index. Past performance is not indicative of future results. WisdomTree Europe
Slide 34: But More Upside is Needed to Overtake the US's Lead in Defense
But More Upside is Needed to Overtake the US’s Lead in Defense Source: WisdomTree, Bloomberg as of 6/30/2026. Series begins at earliest common monthly date, which is May 31, 2006. You cannot invest directly in an index. Past performance is not indicative of future results. WisdomTree Europe Defense
Slide 35: Important Information
Important Information Please see the WisdomTree Glossary for definitions of terms and indexes. This information must be preceded or accompanied by a prospectus or, if available, the summary prospectus. We advise you to consider the Fund’s objectives, risks, charges and expenses carefully before inve
Slide 36: Important Information
Important Information Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to pu