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 Questrade |
| CAE Inc. (CAE) |  | $11.21B | 27.7% | Buy on Questrade |
| Bombardier Inc. (BBDb) |  | $7.89B | 41.1% | Buy on Questrade |
| Bombardier A (BBDa) | | $7.85B | 41.9% | Buy on Questrade |
| Bombardier Pref D (BBD_pd) | | $7.85B | -9.8% | Buy on Questrade |
| Bombardier Pref B (BBD_pb) | | $7.85B | -1% | Buy on Questrade |
| Bombardier Pref C (BBD_pc) | | $7.85B | 21.4% | Buy on Questrade |
| MDA (MDA) |  | $3.48B | 98% | Buy on Questrade |
| Magellan Aerospace Corporation (MAL) |  | $715.38M | 50.5% | Buy on Questrade |
| Kraken Robotics (PNG) |  | $656.95M | 141.7% | Buy on Questrade |
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 Questrade |
| SPDR S&P Kensho Future Security ETF (FITE.NYSEArca) |  | 0.45% | 13.88% | Buy on Questrade |
| Themes Transatlantic Defense ETF (NATO.NasdaqGM) |  | 0.35% | N/A | Buy on Questrade |
| SPDR S&P Aerospace & Defense ETF (XAR.NYSEArca) | | 0.35% | 18.59% | Buy on Questrade |
| HANetf ICAV—Future of Defence UCITS ETF—Accumulating (NATO-LN.LSE) |  | 0.49% | 31.55% | Buy on Questrade |
| Select STOXX Europe Aerospace & Defense ETF (EUAD.Cboe) |  | 0.50% | N/A | Buy on Questrade |
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.
Here’s what we know about the SpaceX IPO plus information on how to buy in from 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.
Steps to owning and managing BBAI, with 24-hour and historical pricing before you buy.
Use this calculator to quickly see the potential outcomes of your options trades.
Want to invest in casinos? We’ve put together a list of casino stocks you should keep your eye on.
Want to invest in information-focused companies? We’ve put together a list of big data stocks you should keep your eye on.
Want to invest in boating companies? We’ve put together a list of boat stocks you should keep your eye on.
These are the best renewable energy stocks to buy now in Canada.
Is Elon Musk planning an IPO for his satellite broadband internet company, Starlink? Here’s what investors in Canada need to know.
Backed by one of Canada’s Big Banks, CIBC Investor’s Edge offers many ways to invest. But it’s not the cheapest platform on the market.
You can’t trade with Pepperstone in Canada, but there are several great alternatives available.
Find the best alternative to Stash in Canada for all your investing needs.