HMEU.L vs. DFEN.DE

Last updated Jun 5, 2026

HMEU.L (HSBC MSCI Europe UCITS ETF) and DFEN.DE (VanEck Defense UCITS ETF A) are both exchange-traded funds - HMEU.L is a Europe Equities fund tracking the MSCI Europe NR EUR, while DFEN.DE is a Aerospace & Defense fund tracking the MarketVector Global Defense Industry Index. Both are passively managed. Over the past year, HMEU.L returned 19.15% vs 17.11% for DFEN.DE. At a 0.37 correlation, their price movements are largely independent. HMEU.L charges 0.25%/yr vs 0.55%/yr for DFEN.DE.

Performance

HMEU.L vs. DFEN.DE - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in HSBC MSCI Europe UCITS ETF (HMEU.L) and VanEck Defense UCITS ETF A (DFEN.DE). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HMEU.L is traded in GBp, while DFEN.DE is traded in EUR. To make them comparable, the DFEN.DE values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, HMEU.L achieves a 6.73% return, which is significantly higher than DFEN.DE's 3.20% return.

HMEU.L

• 1D: 0.61%
• 1M: 3.46%
• YTD: 6.73%
• 6M: 8.70%
• 1Y: 19.15%
• 3Y*: 14.73%
• 5Y*: 10.72%
• 10Y*: 10.50%

DFEN.DE

• 1D: 0.42%
• 1M: -3.11%
• YTD: 3.20%
• 6M: 5.87%
• 1Y: 17.11%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

HMEU.L vs. DFEN.DE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HMEU.L HSBC MSCI Europe UCITS ETF	6.73%	25.88%	6.23%	6.53%
DFEN.DE VanEck Defense UCITS ETF A	3.20%	58.61%	45.35%	10.39%

Correlation

The correlation between HMEU.L and DFEN.DE is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (All Time) Calculated using the full available price history since Jun 20, 2023	0.37

The correlation between HMEU.L and DFEN.DE shifts across timeframes, from 0.27 (1 year) to 0.37 (all time), reflecting how their relationship changes across market environments.

Return for Risk

HMEU.L vs. DFEN.DE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HMEU.L

HMEU.L Risk / Return Rank: 44
HMEU.L Sharpe Ratio Rank: 46
HMEU.L Sortino Ratio Rank: 45
HMEU.L Omega Ratio Rank: 48
HMEU.L Calmar Ratio Rank: 38
HMEU.L Martin Ratio Rank: 42

DFEN.DE

DFEN.DE Risk / Return Rank: 19
DFEN.DE Sharpe Ratio Rank: 19
DFEN.DE Sortino Ratio Rank: 20
DFEN.DE Omega Ratio Rank: 18
DFEN.DE Calmar Ratio Rank: 19
DFEN.DE Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HMEU.L vs. DFEN.DE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC MSCI Europe UCITS ETF (HMEU.L) and VanEck Defense UCITS ETF A (DFEN.DE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HMEU.L	DFEN.DE	Difference
Sharpe ratio: Return per unit of total volatility	1.57	0.70	+0.87
Sortino ratio: Return per unit of downside risk	2.24	1.13	+1.10
Omega ratio: Gain probability vs. loss probability	1.30	1.13	+0.16
Calmar ratio: Return relative to maximum drawdown	1.83	0.92	+0.91
Martin ratio: Return relative to average drawdown	6.52	2.27	+4.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HMEU.L vs. DFEN.DE - Sharpe Ratio Comparison

The current HMEU.L Sharpe Ratio is 1.57, which is higher than the DFEN.DE Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of HMEU.L and DFEN.DE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HMEU.L	DFEN.DE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.57	0.70	+0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	1.82	-1.17

Drawdowns

HMEU.L vs. DFEN.DE - Drawdown Comparison

The maximum HMEU.L drawdown since its inception was -28.42%, which is greater than DFEN.DE's maximum drawdown of -18.56%. Use the drawdown chart below to compare losses from any high point for HMEU.L and DFEN.DE.

Drawdown Indicators

	HMEU.L	DFEN.DE	Difference
Max Drawdown Largest peak-to-trough decline	-28.42%	-18.56%	-9.86%
Max Drawdown (1Y) Largest decline over 1 year	-10.42%	-18.56%	+8.14%
Max Drawdown (3Y) Largest decline over 3 years	-12.77%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.46%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-28.42%	—	—
Current Drawdown Current decline from peak	-1.26%	-15.42%	+14.16%
Average Drawdown Average peak-to-trough decline	-4.79%	-3.21%	-1.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	7.53%	-4.60%

Volatility

HMEU.L vs. DFEN.DE - Volatility Comparison

The current volatility for HSBC MSCI Europe UCITS ETF (HMEU.L) is 3.84%, while VanEck Defense UCITS ETF A (DFEN.DE) has a volatility of 7.45%. This indicates that HMEU.L experiences smaller price fluctuations and is considered to be less risky than DFEN.DE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMEU.L	DFEN.DE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.84%	7.45%	-3.61%
Volatility (6M) Calculated over the trailing 6-month period	10.19%	18.60%	-8.41%
Volatility (1Y) Calculated over the trailing 1-year period	12.17%	24.33%	-12.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.81%	21.07%	-7.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.47%	21.07%	-5.60%

HMEU.L vs. DFEN.DE - Expense Ratio Comparison

HMEU.L has a 0.25% expense ratio, which is lower than DFEN.DE's 0.55% expense ratio.

Dividends

HMEU.L vs. DFEN.DE - Dividend Comparison

HMEU.L's dividend yield for the trailing twelve months is around 2.44%, while DFEN.DE has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN.DE VanEck Defense UCITS ETF A	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HMEU.L HSBC MSCI Europe UCITS ETF	2.44%	2.55%	5.65%	2.80%	2.85%	2.16%	2.13%	3.10%	3.29%	2.77%	2.82%	5.28%

Frequently Asked Questions

Can I hold both HMEU.L and DFEN.DE in my portfolio?

HMEU.L and DFEN.DE have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HMEU.L or DFEN.DE?

On fees, HMEU.L is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HMEU.L or DFEN.DE?

HMEU.L is cheaper with a 0.25% expense ratio, compared with 0.55% for DFEN.DE.

What is the main difference between HMEU.L and DFEN.DE?

HMEU.L is categorized as Europe Equities, while DFEN.DE is Aerospace & Defense. HMEU.L tracks MSCI Europe NR EUR, while DFEN.DE tracks MarketVector Global Defense Industry Index. They also come from different issuers: HSBC and VanEck. Their fees differ too: 0.25% for HMEU.L and 0.55% for DFEN.DE.