How to invest in the MBDA missile without owning it directly… and why it pays less than you think

European leader in missiles, MBDA displays an order book of 44 billion eurosaccording to its latest financial communications, with activity clearly increasing. The company dominates key segments such as air defense and anti-missile systems. On paper, the solution seems obvious: go through its listed shareholders to benefit from its growth. But this strategy, often mentioned, turns out in practice to be much less effective than it seems.

Indirect access… but not very remunerative

Investing via Airbus, BAE Systems or Leonardo allows you to position yourself indirectly on MBDA. But the effect remains diluted. “Yes, we can invest indirectly… but the impact will be very limited”underlines Mathieu Hachemkhani, wealth management advisor at Ferless Conseil.

At issue: the real weight of the missileer in the activity of these groups. MBDA represents less than 10% of their turnover. This dilution can be explained by the very structure of these companies. Airbus remains very dependent on civil aviation, while BAE Systems and Leonardo cover a wide range of defense activities. MBDA’s performance, as dynamic as it may be, is therefore not enough to mechanically drive that of their actions.

“We only capture a small part of the performance”he summarizes. Especially since these companies respond to different logics: Airbus remains very diversified, while BAE Systems and Leonardo are more defense oriented, with a potentially more volatile profile.

Defense ETF: a more coherent alternative

To actually focus on the sectorexperts favor other approaches. THE Specialized defense ETFs allow you to invest in a basket of manufacturers, while pooling the risk. “It’s more secure than betting on a single value”explains Mathieu Hachemkhani.

These funds include multiple industry players, providing broader exposure to overall dynamics. They are accessible via a securities accountsometimes a PEA according to their eligibility, or even a life insurancedepending on the media available.

A growing sector, but to be handled with caution

There remains the question of timing. With high valuations, up to 30 times certain estimated results, the sector is already integrating part of the expectations. “We buy today a price that we hope for tomorrow”illustrates the advisor.

This question of timing is all the more central as the defense sector has already progressed significantly in recent years, driven by the increase in military budgets in Europe. A dynamic that could continue, but which also makes entry points more demanding for investors.

In this context, professionals remain measured. Defense exposure typically represents only a few percent of a diversified portfolio. “It’s a very volatile sector, so we remain exposed but only slightly”he specifies.

“Investing in defense today is betting on the fact that things will not get better”. A lucid bet in the current context, but which requires remaining particularly measured on the amounts committed.