REX Shares has introduced a new thematic ETF targeting the rapidly growing drone industry. The REX Drone ETF (DRNZ), which debuted this week, is being billed by the issuer as the first ETF focused specifically on drones and unmanned aerial vehicles (UAVs).
The global ETF tracks the VettaFi Drone Index, which is designed to capture both “pure play” and “diversified” drone companies.
According to the index provider, 80% of the index weight goes to pure-play firms, or those deriving at least 50% of their assets, revenue or profits from drones or enabling technologies.
The remaining 20% is allocated to diversified firms that derive at least 20% of revenue from drones or UAVs, or are defense companies with dedicated drone R&D programs.
The results in a portfolio of 38 global stocks. Top holdings currently include AeroVironment Inc. (14%), DroneShield (10.6%), Ondas Holdings (10.1%), EHang Holdings (9.8%), and Red Cat Holdings (5.6%).
“Drones are no longer just a defense story—they’re transforming logistics, agriculture, and industry at large,” said Greg King, founder and CEO of REX Shares. “This ETF is designed to give investors authentic, targeted exposure to a technology that’s reshaping how we move goods, monitor infrastructure, and think about automation.”
While defense remains a key part of the drone ecosystem, DRNZ’s exposure extends well beyond military applications. REX cited industry forecasts projecting that the global drone market will double over the next decade as adoption accelerates across both private and public sectors.
The ETF charges 0.65% in expenses.
DRNZ enters a market that recently saw the debut of another drone-related ETF: the Defiance Drone & Modern Warfare ETF (JEDI), which launched in September and has gathered $24 million in assets.
That fund, which carries a 0.69% expense ratio, tracks the BITA Drone & Modern Warfare Select Index, a benchmark with a broader mandate encompassing drones as well as advanced military technologies.
Each index constituent must derive at least 50% of its total revenue from one or more of the following areas: military drones, AI-driven warfare, unmanned systems, electronic warfare, intelligence and reconnaissance, space warfare, military cybersecurity, and robotics.
Top holdings in JEDI currently include Palantir (7.8%), AeroVironment (7.3%), Rocket Lab (7.3%), RTX Corp. (6.7%), and Thales (6.3%).
JEDI is more of a defense and modern-warfare play in which drones are just one part, while DRNZ is a purer play on the growth of drones themselves, both within and beyond military and government use.
