BNP Paribas AM advances thematic investing with a targeted defense benchmark

BNP Paribas Asset Management

BNP Paribas Asset Management (BNPP AM) is the asset manager of BNP Paribas, a leading banking group in Europe with international reach.  

Among the top three asset managers in Europe, BNPP AM manages more than €1.6 trillion in assets for institutional, corporate, retail and wealth clients worldwide, combining liquid and alternative capabilities with a leadership position in long-term savings management for insurers and pension funds with €850bn in AUM in this segment. 

BNPP AM offers a broad range of liquid investment solutions, spanning fixed income, high conviction active strategies and a fast-growing ETF offering, together representing over €1 trillion in assets under management.   

The alternatives platform, built on over 30 years of experience, is the largest in Europe and a global leader, managing approximately €300bn across real estate, infrastructure, alternative credit and private equity.   

Sustainable and thematic investment capabilities are embedded across the business, supporting clients’  long-term objectives.   

BNPP AM brings together expert professionals across nearly 40 countries, blending global reach with local expertise.   

FEATURED PRODUCTS

INDUSTRY

Asset Management

LOCATION

Paris

GOAL

Give investors a precise way to access one of Europe’s most significant structural transformations

Europe is entering a long-term defense investment cycle driven by geopolitical change and rising budget commitments. 

Traditional global defense indices are heavily weighted toward U.S. companies and may not fully capture Europe’s push for strategic autonomy. 

A purpose-built European benchmark can better capture the full depth of this transformation. 

Problem

Europe’s defense framework is undergoing a structural reset. The long-standing security model anchored to the U.S. is evolving, prompting governments to increase spending and strengthen domestic capabilities. 

EU defense expenditure reached €343bn in 2024 and continues to climb, with equipment and R&D budgets rising even faster. This marks a strategic shift, not a short-term reaction. 

BNPP AM identified early that investor demand was building. Clients were seeking a way to participate in Europe’s rearmament and industrial expansion through a targeted and transparent vehicle. 

The challenge was clear: most global aerospace and defense indices are dominated by U.S. names. While those companies are global leaders, they do not fully reflect Europe’s push for autonomy. 

The opportunity was to create a benchmark designed specifically for this new European chapter. 

Solution

Europe’s defense framework is undergoing a structural reset. The long-standing security model anchored to the U.S. is evolving, prompting governments to increase spending and strengthen domestic capabilities. 

EU defense expenditure reached €343bn in 2024 and continues to climb, with equipment and R&D budgets rising even faster. This marks a strategic shift, not a short-term reaction. 

BNPP AM identified early that investor demand was building. Clients were seeking a way to participate in Europe’s rearmament and industrial expansion through a targeted and transparent vehicle. 

The challenge was clear: most global aerospace and defense indices are dominated by U.S. names. While those companies are global leaders, they do not fully reflect Europe’s push for autonomy. 

The opportunity was to create a benchmark designed specifically for this new European chapter. 

Result

With the launch of the ETF under ticker GUARD FP, investors now have a clear and focused way to access Europe’s defense buildout. 

Client conversations have shifted from broad geopolitical headlines to tangible exposure. Advisors and institutional investors can point to a defined basket of European companies aligned with rising defense budgets, expanding order books and long-term modernization plans. 

The ETF structure provides diversification across countries, subsectors and technologies, helping mitigate single-company risk in a complex and politically sensitive industry. 

For BNP Paribas Asset Management, the product enriches its thematic ETF lineup and reinforces the firm’s commitment to innovative, high‑conviction solutions. 

Looking ahead

Europe’s defense transformation is a multi-year shift toward greater autonomy and industrial resilience. As budgets expand and supply chains deepen, the opportunity continues to evolve. 

BSHIELD is designed to evolve alongside it. Quarterly reviews and ongoing governance help ensure the index adapts as technologies advance and new leaders emerge. 

The collaboration extends beyond index construction. In 2025, Bloomberg and BNPP AM partnered on a 12-city European roadshow, bringing the GUARD story directly to investors across the region. Joint research, thought leadership and digital campaigns further amplified visibility and investor engagement. 

This partnership reflects a shared commitment to building durable, differentiated thematic solutions positioned for long-term growth.