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% | |
CAE Inc. (CAE) |  | $11.21B | 27.7% | |
Bombardier Inc. (BBDb) |  | $7.89B | 41.1% | |
Bombardier A (BBDa) | | $7.85B | 41.9% | |
Bombardier Pref D (BBD_pd) | | $7.85B | -9.8% | |
Bombardier Pref B (BBD_pb) | | $7.85B | -1% | |
Bombardier Pref C (BBD_pc) | | $7.85B | 21.4% | |
MDA (MDA) |  | $3.48B | 98% | |
Magellan Aerospace Corporation (MAL) |  | $715.38M | 50.5% | |
Kraken Robotics (PNG) |  | $656.95M | 141.7% |
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% | |
SPDR S&P Kensho Future Security ETF (FITE.NYSEArca) |  | 0.45% | 13.88% | |
Themes Transatlantic Defense ETF (NATO.NasdaqGM) |  | 0.35% | N/A | |
SPDR S&P Aerospace & Defense ETF (XAR.NYSEArca) | | 0.35% | 18.59% | |
HANetf ICAV—Future of Defence UCITS ETF—Accumulating (NATO-LN.LSE) |  | 0.49% | 31.55% | |
Select STOXX Europe Aerospace & Defense ETF (EUAD.Cboe) |  | 0.50% | N/A |
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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