UK defence shares are, sadly, in sharp focus at the moment and it isn’t hard to see why. Geopolitical instability is sending shockwaves through the markets and these stocks can potentially offer a portfolio hedge.

Looking for defence stocks to consider buying today? Here are two that could be worth checking out, along with a thematic exchange-traded fund (ETF) that could also be worth a look.

A defence powerhouse

When it comes to UK defence investments, it’s hard to ignore FTSE 100 firm BAE Systems (LSE: BA.). With a market-cap of around £65bn, it’s the largest pure-play defence company on the London Stock Exchange.

A diversified business, it makes a range of products including aircraft, ships, submarines, combat vehicles, weapon systems, and munitions. It also has a fast-growing cyber and intelligence business.

Now, this stock has had a huge run over the last three years (more than doubling in price). However, I still believe it’s worth considering today.

Last month, it reported a 12% rise in full-year operating profit for 2025 and a record £84bn order backlog. It also told investors it expects a ‘new era’ of defence spending to drive growth for years to come.

I’ll point out that the valuation here is a little on the high side (the price-to-earnings (P/E) ratio’s about 25). This could be an issue if growth doesn’t materialise in the years ahead.

Taking a five-year view though (our preferred investment horizon here at The Motley Fool), I reckon this stock will grow into its valuation and do well. With NATO spending on the rise, it should continue to see top- and bottom-line growth.

A smaller FTSE 100 player

While BAE Systems tends to hog the spotlight, there’s another top defence stock in the FTSE 100 index. That’s Babcock International (LSE: BAB).

It manufactures a range of defence products from naval ships to weapons handling systems. It also offers exposure to nuclear technology and tech-enabled solutions in areas such as secure communications, electronic warfare, and air defence.

This company’s financial year ends at the end of this month, so we haven’t had its full-year results yet. However, a Q3 trading update posted in January was very encouraging. Here, it said that the strong performance reported for the first half of the year had continued.

Note that for H1, operating profit was up 27% year on year. And at the end of the first half, the company had a contracted backlog worth about £10bn.

The P/E ratio here – using next financial year’s earnings forecast – is about 22. I think that’s reasonable. Again though, if defence spending suddenly drops, the stock could come under pressure.

A top defence ETF

While I’m bullish on BAE Systems and Babcock shares, I’ve personally chosen to invest in the HANetf Future of Defence ETF instead. This is a thematic ETF that provides broad exposure to the industry.

With this product, I get access to around 60 businesses. Some names in the portfolio include Rheinmetall, Lockheed Martin, and RTX Corp.

Obviously, the fact that it’s focused on one industry is a risk (it’s not diversified by sector like a FTSE 100 ETF is).

But I think it’s worthy of further research and It’s certainly been a good investment for me.