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.
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