Best defense stocks in Canada

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.

What are the best Canadian defense stocks in 2025?

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 Interactive Brokers
CAE Inc. (CAE)		$11.21B	27.7%	Buy on Interactive Brokers
Bombardier Inc. (BBDb)		$7.89B	41.1%	Buy on Interactive Brokers
Bombardier A (BBDa)		$7.85B	41.9%	Buy on Interactive Brokers
Bombardier Pref D (BBD_pd)		$7.85B	-9.8%	Buy on Interactive Brokers
Bombardier Pref B (BBD_pb)		$7.85B	-1%	Buy on Interactive Brokers
Bombardier Pref C (BBD_pc)		$7.85B	21.4%	Buy on Interactive Brokers
MDA (MDA)		$3.48B	98%	Buy on Interactive Brokers
Magellan Aerospace Corporation (MAL)		$715.38M	50.5%	Buy on Interactive Brokers
Kraken Robotics (PNG)		$656.95M	141.7%	Buy on Interactive Brokers

Popular defense ETFs for 2025

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 Interactive Brokers
SPDR S&P Kensho Future Security ETF (FITE.NYSEArca)		0.45%	13.88%	Buy on Interactive Brokers
Themes Transatlantic Defense ETF (NATO.NasdaqGM)		0.35%	N/A	Buy on Interactive Brokers
SPDR S&P Aerospace & Defense ETF (XAR.NYSEArca)		0.35%	18.59%	Buy on Interactive Brokers
HANetf ICAV—Future of Defence UCITS ETF—Accumulating (NATO-LN.LSE)		0.49%	31.55%	Buy on Interactive Brokers
Select STOXX Europe Aerospace & Defense ETF (EUAD.Cboe)		0.50%	N/A	Buy on Interactive Brokers

How to invest in defense stocks

1. Open a stock dealing platform. The first step in finding the best trading app or platform that suits your needs.
2. Fund your account. Once your stock trading account is set up, you can deposit funds. Usually this can be done via a bank transfer, wire transfer or any other means allowed by your trading platform.
3. Research and choose defense stocks. Research your first investments, and then search them up on your chosen platform (by company name or stock ticker).
4. Place your order! Once you’ve found the stock(s), select the amount you want to invest and create an order to buy stocks. And just like that, you’re now officially an investor in defense stocks.

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Bottom line

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.

Frequently asked questions

• What factors should investors consider when investing in defense stocks?

  It's important to be aware of the wider landscape and not simply how well a business is doing because it could be performing well based on old contracts and budgets. You need to think about government defense budgets, geopolitical risks, ethical considerations and a company's financial health. Since defense firms rely on government contracts, policy changes can heavily impact revenues and profit margins.

• How do geopolitical events impact defense stocks?

  Global conflicts and rising tensions often drive increased defense spending, boosting share prices of defense stocks. However, these stocks can also be volatile due to unpredictable geopolitical developments.

• Are there ethical concerns with investing in defense stocks?

  It depends on your personal views and ethics. Some investors avoid defense stocks due to concerns about weapons manufacturing and military involvement at home or abroad. Ethical considerations vary, so it's important to align your investments with your personal values.

To make sure you get accurate and helpful information, this guide has been edited by Stacie Hurst as part of our fact-checking process.

Written by

George Sweeney, DipFA

Deputy editor

George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers. He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active. See full bio

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