Core Insights - Global conflict has surged in 2026, impacting markets and creating volatility, particularly benefiting defense stocks, especially in drone technology [1] - Investors are encouraged to consider defense stocks as a viable investment category due to the rising demand driven by conflict [1] Defense Stocks and ETFs - Defense stocks, particularly drone companies, are experiencing increased demand due to their relevance in modern warfare and potential for new technology applications [1] - The Rex Drone ETF (DRNZ) offers targeted exposure to the drone industry, charging a fee of 65 basis points and focusing on firms that derive at least 50% of their revenues from drone or UAV development [1] - DRNZ has achieved a return of 29.4% over the last three months, driven by key players in the drone sector, such as DroneShield Limited (DRO) [1] - The Global X Defense Tech ETF (SHLD) charges a fee of 50 basis points and has returned 23.38% over the last three months, focusing on firms in big data, augmented reality, robotics, cybersecurity, and fuel systems [1] - The Invesco Aerospace & Defense ETF (PPA) charges 58 basis points and has returned 19.95% over the last three months, targeting major industry leaders like Lockheed Martin Corp. (LMT) [1] - PPA and SHLD provide exposure to drones through established industry leaders rather than pure-play companies [1]