Investors are flocking to the Global X Defense Tech ETF (SHLD) as the world becomes more uncertain in 2026. This fund doesn’t just own companies that make tanks and planes. It focuses on “future tech” like AI, drones, and computer security. Because several big global events happened at the same time, this ETF has become a top choice for people who think countries will keep spending more on their militaries.
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As seen in the chart below, the fund has experienced a powerful breakout rally. Since the start of 2026, SHLD has jumped from $69 to over $76, marking one of its strongest two-week runs since it launched.
The Venezuela Event Starts a Rally
A major reason for the stock’s jump was the recent U.S. mission to capture the leader of Venezuela. This move showed the world that the U.S. is willing to use its military in a very direct way. This event caused a surge in the SHLD price because investors expect the U.S. to buy even more advanced surveillance and weapon systems. Large companies like Lockheed Martin (LMT), which are held inside this fund, often see their stock prices go up when the government increases its military activity.
The Fight Over Greenland Moves the Market
The situation in Greenland is also moving the market. After President Trump suggested the U.S. should own the island for security reasons, European countries got nervous. To show they have things under control, the UK and Germany are planning new military missions to protect the Arctic. This is great news for European defense companies like BAE Systems (BAESF) and Rheinmetall (RNMBY), which are also part of the SHLD fund. These companies are now seeing record-high demand for their gear.
U.S. Government Aims for a Massive Increase in Spending
The U.S. government is now talking about a huge $1.5 trillion military budget for next year. This would be one of the largest spending increases in history. Most of this money is going toward high-tech tools like battlefield AI and better satellite systems. Because SHLD holds 42 different companies that lead the way in this tech, it is in a perfect spot to grow as this new money starts to flow.