--- title: "The defense ETF rose over 2%, as the geopolitical situation continues to catalyze the military industry" type: "News" locale: "en" url: "https://longbridge.com/en/news/278476227.md" description: "The defense ETF rose over 2%, influenced by geopolitical situations, with the military industry sector continuing to heat up. The 2026 government work report lists \"Aerospace\" as an emerging pillar industry, indicating significant growth potential for defense spending, which is expected to remain above GDP growth rates in the long term. The CSI Defense Index surged strongly, with constituent stocks performing well, and the defense ETF closely tracks this index, reflecting the overall performance of the defense industry" datetime: "2026-03-10T02:04:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278476227.md) - [en](https://longbridge.com/en/news/278476227.md) - [zh-HK](https://longbridge.com/zh-HK/news/278476227.md) --- # The defense ETF rose over 2%, as the geopolitical situation continues to catalyze the military industry The geopolitical situation continues to catalyze the military industry sector. In addition, the 2026 government work report for the first time lists "aerospace" alongside integrated circuits, biomedicine, and the low-altitude economy, clearly identifying it as an "emerging pillar industry," marking a historic leap in strategic positioning. Pacific Securities points out that China's defense spending has long maintained a GDP ratio of less than 1.5%, significantly lower than the average level of major military powers in the world. There is still considerable room for growth in defense spending in the future, which may remain about 2 percentage points higher than GDP growth rate in the long term. As defense accelerates its evolution towards informatization and intelligence, the structure of defense spending will continue to shift towards new domains and qualities, and military trade exports are also expected to open up larger market space. The year 2026, as the starting year of the "14th Five-Year Plan," may see the industry enter a rapid development phase driven by both domestic demand and foreign trade. As of March 10, 2026, at 09:42, the CSI Defense Index (399973) surged by 1.95%, with constituent stocks such as Aerospace Electric rising by 9.99%, Feilihua rising by 5.77%, Torch Electronics rising by 5.06%, and stocks like Western Materials and Hongyuan Electronics also following suit. The Defense ETF (512670) rose by 1.90%, with the latest price reported at 1.02 yuan. The Defense ETF closely tracks the CSI Defense Index, which selects listed company securities under the ten major military industrial groups, as well as those that provide weaponry and equipment to the national armed forces or have actual equipment contracts or sales amounts with the military, as index samples to reflect the overall performance of listed company securities in the defense industry. Data shows that as of February 27, 2026, the top ten weighted stocks in the CSI Defense Index (399973) are Aero Engine Corporation of China, Aerospace Electronics, Feilihua, AVIC Shenyang Aircraft Corporation, AVIC Optoelectronics, Ruichuang Micro-Nano, AVIC Xi'an Aircraft Industry Group, Western Superconducting Technologies, AVIC Aircraft, and Haige Communications, with the top ten weighted stocks accounting for a total of 43.14% ### Related Stocks - [563380.CN](https://longbridge.com/en/quote/563380.CN.md) - [159241.CN](https://longbridge.com/en/quote/159241.CN.md) - [399973.CN](https://longbridge.com/en/quote/399973.CN.md) - [159227.CN](https://longbridge.com/en/quote/159227.CN.md) - [512810.CN](https://longbridge.com/en/quote/512810.CN.md) - [512670.CN](https://longbridge.com/en/quote/512670.CN.md) ## Related News & Research - [$100 Invested In iShares U.S. Aerospace & Defense ETF 20 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/286584297.md) - [Guardian Ultra-Short U.S. T-Bill Fund ETF declares $0.1448 dividend](https://longbridge.com/en/news/286471588.md) - [The AI Boom Needs Real Assets to Survive. This ETF Lets You Profit From Both.](https://longbridge.com/en/news/286113679.md) - [BNB ETF Could Be Next Big Crypto Breakthrough, Says Bloomberg Analyst](https://longbridge.com/en/news/286639724.md) - ['Biggest bottleneck in the AI buildup' fuels DRAM ETF to record](https://longbridge.com/en/news/286596736.md)