The Defiance Drone & Modern Warfare ETF is an exchange-traded fund that offers targeted exposure to companies at the forefront of military technology innovation, specifically those advancing next-generation warfare capabilities. This ETF is constructed to track firms deriving at least half of their revenue from sectors such as military drones, autonomous unmanned systems, AI-driven warfare, cybersecurity for military operations, intelligence and surveillance systems, electronic and communication warfare, and space-based defense solutions—including military satellites and missile defense platforms. Notable holdings include leaders in battlefield analytics, precision strike drones, and AI-powered robotic systems, representing both established names and emerging growth companies within defense tech. Unlike traditional defense funds, this ETF deliberately excludes legacy contractors to concentrate on firms driving the digital and technological transformation of the defense industry. Its composition reflects the increasing reliance of modern armed forces on artificial intelligence, autonomous platforms, real-time analytics, and space infrastructure. The fund passively tracks a specialized index and aligns with major governmental priorities, notably the U.S. Department of Defense's push for advanced drone production and space defense expansion. As defense technology rapidly evolves in response to global security demands, this ETF serves as a focused instrument capturing the sector’s structural shift toward autonomous and AI-enabled military systems.
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