Core Insights - Defiance ETFs has launched the Defiance Drone & Modern Warfare ETF (NYSE:JEDI) to capitalize on the transformation in defense and infrastructure driven by drones and AI autonomy [1][3] - JEDI focuses on innovative companies rather than traditional defense primes, targeting those generating significant revenue from military drones, unmanned systems, and AI-driven technologies [2][4] Industry Trends - Drones are increasingly central to next-generation technology, integrating AI, robotics, and aerospace, with applications extending beyond defense to sectors like agriculture and energy [3][4] - Geopolitical factors and innovation are driving demand for domestic drone manufacturing in the U.S., with commercial applications growing in areas such as precision farming and real-time infrastructure monitoring [3][4] ETF Structure and Strategy - JEDI's portfolio includes a mix of U.S. firms and international innovators, balancing growth-oriented startups with established manufacturers to provide both innovation exposure and revenue visibility [4][5] - The ETF is designed to mitigate volatility through diversification across hardware, software, and applications, while including cash-flow positive companies for stability [5] Market Outlook - The drone industry is expected to experience double-digit growth over the next three to five years, with drones becoming as ubiquitous as satellites in defense and delivery vans in commerce [6] - JEDI will rebalance quarterly to maintain exposure to emerging players in the drone and AI sectors, ensuring alignment with rapid technological advancements [7]