Strivo Launches Thematic Defence Booster Note

The “3273 Indexbevis Europeisk Försvarsindustri Platå” listed on Nasdaq, offers leveraged exposure to a basket of European defence companies, while providing downside protection of up to 25% on the index.

“Investments in European defence stocks have been unpopular over the past decade, largely due to declining defence budgets across Europe and increasing ESG concerns among investors. However, everything changed in 2022 with the Russian invasion of Ukraine,” says Olof Gustafsson, Head of Structuring at Strivo.

European defence companies are now increasingly seen by politicians as essential to safeguarding the continent’s autonomy in a more polarized world. This shift in perception has spurred a surge in investor interest.

“The change in sentiment began in 2022 but has significantly accelerated recently,” Olof adds.

Strivo launched its first structured product tied to European defence stocks in 2023, followed by two additional offerings in 2024. The “3273 Indexbevis Europeisk Försvarsindustri Platå” is a plateau booster note that provides leveraged exposure to the proprietary MerQube Europe Defense 10 Basket. This index tracks the performance of ten of the largest European-domiciled defence companies listed in Europe. It is equally weighted and rebalanced quarterly.

The product includes a 75% risk barrier, meaning investors are protected against losses unless the index falls by more than 25%. It offers high leverage—4x—on the first 20% increase in the index value.

“A plateau booster note is typically structured to offer strong leverage on moderate gains in the underlying index. In this case, the leverage factor is 4x,” explains Olof.

For example, if the index rises by 10%, investors receive a 40% return at maturity. If the index increases by 20%, the return is 80%. Beyond this the plateau-level kicks in and to receive a higher payoff the index needs to perform better than 80%. In that case investors receive a 1:1 payout for any additional index performance.

Founded in 2009, Strivo offers a wide range of structured products across various formats and investment themes, including capital-protected notes, credit-linked notes, and boosters. The products are traded on exchange in Sweden.

The first trading date for “Indexbevis Europeisk Försvarsindustri Platå” is set for June 27, 2025.

Read more here