Defence sector ETFs surge amid India-Pakistan tensions, Groww, Motilal Oswal ETFs lead with 7% gains

Defence sector-based Exchange-Traded Funds (ETFs) have seen impressive growth, with returns up to 7% in the past two weeks, fueled by heightened India-Pakistan tensions. This surge comes amid increased investor interest in defence stocks, which are typically considered resilient during periods of geopolitical instability.Groww Nifty India Defence ETF and Motilal Oswal Nifty India Defence ETF both delivered solid returns of 6.73% and 6.74%, respectively, during the period. Meanwhile, Groww Nifty India Defence ETF Fund of Funds (FoF) outpaced them with a gain of 7.10% in the same timeframe, according to an ET report.These ETFs are benchmarked against the Nifty India Defence TRI, which recorded a 6.75% increase over the same period. The uptick in returns follows reports that the Indian government is meeting with defence manufacturers next week, sparking optimism around military procurement and defence sector growth.In the past week alone, the defence ETFs posted more modest gains of up to 1%, though their performance over the last three months has been more substantial, with returns reaching up to 19.56%. Among the ETFs, the Motilal Oswal Nifty India Defence ETF led with 19.56%, followed closely by the Groww Nifty India Defence ETF at 19.24%. The Groww Nifty India Defence ETF FoF also delivered 19.24% over the same period.In the past month, defence ETFs have surged by up to 16%, with Groww Nifty India Defence ETF FoF leading the pack with 16.40% returns.