This guide will explore the best defense stocks in Canada, helping you identify key global players, get a better understanding of the risks and hopefully be in a better position to make informed investment decisions about holding defense shares in your portfolio.
Unfortunately it’s impossible to predict what will be the best defense stocks in any given year. But, to give you some starting inspiration, here are the largest Canadian aerospace and defense stocks by market capitalization as of March 28, 2025.
If you’re looking for defense stocks outside Canada, check out at indices like the MarketVector Global Defense Industry Index, which track the performance of national defense industry companies around the world like Palantir Technologies, Leonardo S.p.A., Thales S.A. and Leidos Holdings.
| Stock | Icon | Market cap | 1yr return | |
|---|---|---|---|---|
| RTX Corp DRC (RTX) |  | $252.29B | 35.9% | Buy on CIBC Investor's Edge |
| CAE Inc. (CAE) |  | $11.21B | 27.7% | Buy on CIBC Investor's Edge |
| Bombardier Inc. (BBDb) |  | $7.89B | 41.1% | Buy on CIBC Investor's Edge |
| Bombardier A (BBDa) | | $7.85B | 41.9% | Buy on CIBC Investor's Edge |
| Bombardier Pref D (BBD_pd) | | $7.85B | -9.8% | Buy on CIBC Investor's Edge |
| Bombardier Pref B (BBD_pb) | | $7.85B | -1% | Buy on CIBC Investor's Edge |
| Bombardier Pref C (BBD_pc) | | $7.85B | 21.4% | Buy on CIBC Investor's Edge |
| MDA (MDA) |  | $3.48B | 98% | Buy on CIBC Investor's Edge |
| Magellan Aerospace Corporation (MAL) |  | $715.38M | 50.5% | Buy on CIBC Investor's Edge |
| Kraken Robotics (PNG) |  | $656.95M | 141.7% | Buy on CIBC Investor's Edge |
Here are some of the biggest defense exchange-traded funds (ETFs) available to Canadian investors:
| Stock | Icon | Expense ratio | 1yr return | |
|---|---|---|---|---|
| Global X Funds (SHLD.NYSEArca) |  | 0.50% | 43.48% | Buy on CIBC Investor's Edge |
| SPDR S&P Kensho Future Security ETF (FITE.NYSEArca) |  | 0.45% | 13.88% | Buy on CIBC Investor's Edge |
| Themes Transatlantic Defense ETF (NATO.NasdaqGM) |  | 0.35% | N/A | Buy on CIBC Investor's Edge |
| SPDR S&P Aerospace & Defense ETF (XAR.NYSEArca) | | 0.35% | 18.59% | Buy on CIBC Investor's Edge |
| HANetf ICAV—Future of Defence UCITS ETF—Accumulating (NATO-LN.LSE) |  | 0.49% | 31.55% | Buy on CIBC Investor's Edge |
| Select STOXX Europe Aerospace & Defense ETF (EUAD.Cboe) |  | 0.50% | N/A | Buy on CIBC Investor's Edge |
Investing in defense stocks from Canada can paradoxically offer potential long-term stability and steady, given the worldwide appetite for strong defense sector spending and global defense partnerships. With major firms like CAE and RTX listing on stock exchanges in Canada, Canadian investors can directly buy into key contributors to international defense and security.
However, investors should also consider stocks and ETFs listed outside Canada for more diversification. But it’s important to remember that the share price performance of defense stocks can depend on factors like government budgets, geopolitical risks and global conflict. Diversifying within the sector and staying informed on policy changes can help you stay ahead of the curve if you’re looking to buy defense stocks in Canada.
Futures trading can be rewarding, but it’s not for everyone. Learn the steps to trade futures, including examples and fees to consider.
Microsoft, IBM, IONQ, Rigetti and Quantum Computing are some of the top stocks to buy in this category. See how to get started here.
DeepSeek isn’t publicly traded, but you can invest in similar companies or swoop in on stocks impacted by the DeepSeek effect.
Want to invest in oil tanker companies? We’ve put together a list of oil tanker stocks you should keep your eye on.
Want to invest in diamond companies? We’ve put together a list of diamond stocks you should keep your eye on.
Want to invest in sports companies? We’ve put together a list of sports stocks you should keep your eye on.
Learn how a stop-loss order can help you limit losses or lock in profits when trading.
These are the best renewable energy stocks to buy now in Canada.
Check out some of the best gold stocks to buy right now in Canada based on company performance.
Finder’s unique algorithm found the 20 best TSX stocks to buy right now.
Learn how to choose the best ETFs to buy right now in Canada.
Round up your spare change into big bucks with Canadian apps designed for saving, depositing and investing.
Compare defensive and growth investments to find the best investment accounts in Canada for you.
