EUAD is trading at $39.18 (-6.22%) as a broad risk-off rotation hits the defense and aerospace sectors, leading investors to unwind geopolitical hedging positions.
- The decline follows a period of gains driven by NATO rearmament themes, which are now facing pressure as war-risk premiums begin to fade across European markets.
- Broader market sentiment is further dampened by a sharp overnight selloff in the tech sector and rising bond yields, though no ETF-specific catalyst has been identified.
- The move reflects a tactical rotation out of defensive European defense exposure amid increased pre-market volatility and a shift in investor focus away from geopolitical hedges.