Europe's drone defense boom is accelerating. These two ETFs offer targeted exposure as military spending shifts toward AI-powered warfare.
The REX Drone ETF offers diversified exposure to emerging and established drone technology companies, targeting both growth and stability. DRNZ benefits from significant U.S. defense investment in low-cost drones and counter-UAVs, positioning it for growth as warfare economics shift. The ETF is top-heavy, with over 70% of assets in its top 10 holdings, and emphasizes pure-play drone developers through its index methodology.
Technology stocks are key drivers of portfolio performance, but right now, AI stocks are king. Those hyperscalers, however, also loom as a key source of concentration risk for portfolios.
The global defense industry continues to move rapidly from legacy, heavy-hardware platforms to agile, unmanned systems. Today, the Trump Administration announced that it's pursuing funding deals for drone companies in an effort to increase domestic production in today's defensive landscape.
The thematic expansion of defense technology and automated hardware continues to drive investor interest toward the REX Drone ETF (DRNZ). Launched to track the VettaFi Drone Index, the fund offers pure-play exposure to the expanding global uncrewed aerial vehicle (UAV) ecosystem.
Drones are down – is this a good entry point?
2026 offers plenty of opportunity in tech investing once again following a breakout year for tech AI tech in 2025. Inventors want that tech upside, but this year could behoove investors to diversify outside of AI hyperscalers.
It certainly seems like market momentum in the drone sector won't stop soaring any time soon. And crucially, this momentum is occurring in both the drone and counter-drone spaces.
Moving into February, advisors and investors can better understand which portfolio strategies and thematic exposures might be well-positioned this year. One investment theme that enjoyed a particularly prosperous January was the drone and unmanned aerial vehicle (UAV) industry.
About a month into the new year, exchange-traded funds (ETFs) are beginning to build up enough of a performance record for 2026 to potentially differentiate themselves from the broader market. The funds with the best track record in 2026 may surprise some investors.
As seen in a How to Find Pure Play Approaches to Drone Technology webinar, a lot goes on behind the scenes when building an exchange-traded fund (ETF) — in this case, the REX Drone ETF (DRNZ).
Thematic exchange-traded funds (ETFs) saw a resurgence in 2025, bringing growth opportunities in niche subsectors back into the spotlight. That said, some investment trends can be short-lived.