Germany’s Rheinmetall AG joined the EURO STOXX 50® today, marking the benchmark’s first extraordinary change since 2021, amid a surge in Europe’s defense stocks.
Shares in the maker of tanks and ammunition were added to the index in a so-called fast entry after rising 181% this year.[1] They replaced Kering SA, the owner of the Gucci and Yves Saint Laurent luxury brands, whose stock has lost nearly a quarter of its value since January. Rheinmetall shares rose 3.3% in morning trading today while Kering lost 0.9%.
The EURO STOXX 50 has an annual index review in September. Additionally, the index incorporates a monthly “fast exit” and a quarterly “fast entry” mechanisms to account for stocks that have experienced significant recent price changes.
Rheinmetall took up 2.2% of the EURO STOXX 50 upon entry.
Fast entry and exit
All stocks on the latest EURO STOXX 50 selection list are reviewed for a fast entry on a quarterly basis. A stock is added if it ranks between 1 and 25 on this list, and replaces upon entry the smallest component in the blue-chip index.
At the other end, EURO STOXX 50 components are monitored for a fast exit in a monthly selection list, should they be ranked 75 or below for two consecutive months.
Defense stocks on a tear
Shares in European military suppliers have rallied since Russia’s invasion of Ukraine in 2022, and gains have accelerated this year as US President Donald Trump said Europe needs to forgo the American defense support that has been a pillar since 1945. Countries in the region have significantly ramped up spending on equipment from missiles to artillery, drones and electronic warfare, as they support Ukraine’s defense.
The European Commission in March called for “decisive action” as it presented a package to help European Union nations spend over EUR 800 billion in defense and in military research from European providers.
The ascent of defense stocks is being reflected in other indices too. Indra Sistemas SA, the Spanish defense, air traffic and space company, and Babcock International Group Plc, which builds warships, entered the STOXX® Europe 600 today. Renk Group AG, which makes propulsion solutions for the military, joined the MDAX® index in March this year. The company reported in May that its first-quarter order intake more than doubled from a year earlier.[2]
New indices and products targeting defense sector
Amid rising demand for defense stocks, STOXX has worked with partners including BlackRock, Amundi and WisdomTree to introduce investable products targeting the sector.
[1] Data through June 17.
[2] Defence Industry Europe, ‘RENK Group doubles order intake, driven by military projects,’ May 14, 2025.