Copyright Benzinga
REX Shares has taken investors to new heights, literally, with the launch of the REX Drone ETF (NASDAQ:DRNZ), billed as the first pure play fund offering dedicated exposure to the global drone and unmanned aerial vehicle (UAV) economy. • DRNZ stock is showing exceptional strength. Review the technical setup here. The new fund looks to capture both defense and commercial drone applications, giving investors a focused way to take part in one of the fastest-evolving technology frontiers. Unlike traditional aerospace or defense ETFs, DRNZ zeroes in exclusively on the companies fueling the rise of drones across industries, from military reconnaissance and logistics to agriculture, infrastructure inspection and AI-enabled automation. Tracking the VettaFi Drone Index (VDRONE), DRNZ follows global companies obtaining a significant portion of their revenue from drone-related businesses. The index's methodology favors "pure play" drone companies — those that derive at least 50% of their revenues from drones or related enabling technologies — while also allocating to diversified aerospace and defense firms with established UAV programs. The ETF comes with an expense ratio of 0.65% and looks to fully replicate the holdings within the index. At the end of October, the underlying index had heavy exposure to the industrial sector and Asian markets, underpinning the international nature of the drone ecosystem. With increasing commercial use and government applications, industry projections have the global drone market more than doubling over the next decade. To investors, DRNZ offers a first-of-its-kind gateway into a market that is increasingly taking flight — both literally and figuratively. The launch comes just over a month after Defiance launched its own bet on drones and AI-driven autonomy with the Defiance Drone & Modern Warfare ETF (NYSE:JEDI). Nonetheless, JEDI spreads out its exposure to the overall defense and modern-warfare market, which drones are a part of, while DRNZ is a pure play in drones. With this launch, REX continues to expand its suite of thematic and alternative ETFs. The issuer already manages products like the REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI), which has accrued over $550 million in assets. Read Next: Franklin Templeton Bets On Muni Market Momentum With 5 New Tax-Exempt ETFs Photo: Barillo_Images via Shutterstock
