Core Insights - The launch of Drone ETFs by REX Shares and Defiance indicates a growing interest in the aerospace defense sector, which generated $922 billion in global revenue last year [2] - The aerospace defense industry is experiencing significant growth, with some ETFs in this sector up by 40% or more year to date [2] - Global military expenditures reached $2.7 trillion last year, marking a 9.4% increase from 2023, contributing to rising profit margins for companies involved in drone and military technology [3] Industry Overview - The Drone ETF (DRNZ) allocates 80% of its portfolio to companies profiting from drones or unmanned aerial vehicles (UAVs) [2] - The Drone & Modern Warfare ETF (JEDI) focuses on military technology companies and is concentrated in aerospace defense [2] - Major companies in the drone and aerospace sector include Boeing, Lockheed Martin, and RTX Corporation, which have diversified business lines beyond defense [3] Investment Considerations - Analysts suggest that drone ETFs represent a niche within the broader aerospace and defense theme, with potential for high volatility [3] - The iShares U.S. Aerospace & Defense ETF (ITA) is up 46% year to date, Invesco's Aerospace & Defense ETF (PPA) is up 35%, and the Global X Defense Tech ETF (SHLD) is up 79% year to date [4]