What Is the DRNZ ETF? Returns, Expense Ratio, Holdings and Alternative ETFs at a Glance
The REX Drone ETF (DRNZ) is a thematic ETF that invests in companies across the unmanned aircraft and drone ecosystem. It is a useful reference for investors who want exposure to the growth outlook of the defense and commercial drone industries and to related stocks in a single product, and it can be compared with aerospace and defense ETFs.
SubscribeWhat Is the REX Drone ETF?
This is a thematic ETF that provides concentrated exposure to the drone and unmanned systems industry. It holds companies across the drone value chain, including unmanned aerial vehicle manufacturers, defense drones, commercial unmanned systems, and related component, sensor and software companies, and aims to capture the performance of the theme.
It is a useful reference for investors interested in the long-term growth of the drone and unmanned systems theme who prefer diversified thematic exposure over a single stock.
It is an actively managed ETF operated by REX Shares.
How Does the REX Drone ETF Invest?
| Item | Details |
|---|---|
| Theme Tracked | Drone and unmanned systems industry |
| Management Style | Active (selected by professional managers) |
| Rebalancing Frequency | Regular rebalancing |
| Dividend Frequency | Growth-focused (limited distributions) |
| Issuer | REX Shares |
| Expense Ratio | 0.65% |
By selecting and holding companies in the drone and unmanned systems value chain, the fund provides exposure to the growth of the theme. It spans a variety of sub-sectors, including defense drones, commercial unmanned aircraft, and related components, sensors and software, and the strategy relies on the managers' stock selection to ensure the portfolio is representative of the theme.
- Concentrated exposure to the drone and unmanned systems theme
- Diversified holdings across the value chain
REX Drone ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) are $100.1M, and the expense ratio is 0.65% per year.
Given the nature of thematic ETFs, fund inflows and volatility can both rise along with growth expectations for the related industry.
REX Drone ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeInterest in the drone theme tends to rise and fall with defense demand and expectations for the spread of commercial unmanned systems. Because of its thematic concentration, the fund tends to react sensitively to individual news items and policy changes, so its volatility is relatively high.
Thematic ETFs tend to attract inflows when market attention is focused on them and see outflows when interest cools. Fund flows and trading activity can pick up when drone industry policy or geopolitical issues come to the fore.
REX Drone ETF Pros and Cons
Its strength is the ability to gain diversified exposure to the drone theme in one step, while its weaknesses are the volatility that comes with thematic concentration and the risks of an early-stage industry.
💪 Key Strengths
⚠️ Points to Watch
REX Drone ETF Alternatives and Related Products
The drone theme partly overlaps with the defense and aerospace industries, so investors looking to broaden into a wider defense theme can also consider ITA, the iShares aerospace and defense ETF, and PPA from Invesco. SHLD, which focuses on defense technology, is another alternative. These funds have broader exposure across aerospace and defense beyond drones, so they differ in thematic concentration and diversification, and it is best to compare them according to your objectives.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 TRFK | Pacer Data and Digital Revolution ETF | $84.80 | -7.6% | $1.1B | 0.49% | 0.03% | +16.8% |
 PPH | VanEck Pharmaceutical ETF | $119.33 | +2.1% | $1.1B | 0.36% | 1.79% | +29.2% |
 NXTG | First Trust Indxx NextG ETF | $145.12 | -3.0% | $547.7M | 0.70% | 1.36% | +32.3% |
 CLOU | Global X Cloud Computing ETF | $28.02 | -4.2% | $413.4M | 0.68% | - | +18.4% |
 WQTM | WisdomTree Quantum Computing Fund | $26.33 | -6.0% | $309.5M | 0.45% | - | -11.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 AVAV | AeroVironment Inc | 0.21% | $126.11 | -6.5% | $6.4B | - | - |
 ONDS | Ondas Inc | 0.24% | $6.32 | -8.1% | $3.7B | 70.7 | - |
 RCAT | Red Cat Holdings Inc | 0.12% | $4.63 | -8.3% | $707.1M | - | - |
 UMAC | Unusual Machines Inc | 0.10% | $15.53 | -10.1% | $806.2M | - | - |
 EH | EHang Holdings Ltd ADR | 0.05% | $3.59 | -2.2% | $202.1M | - | - |
REX Drone ETF Investor Checkpoints
These are the points to review before investing in DRNZ. Thematic ETFs carry concentration risk along with growth potential, so it is advisable to check costs, volatility and holdings in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Cumulative costs of a thematic, active ETF | Higher than core ETFs |
| 📊 Thematic Concentration | Volatility from concentration in the drone industry | Concentrated exposure |
| 🌐 Holdings | Composition of the defense and commercial drone value chain | Needs verification |
| 💱 Exchange Rate | Impact on returns when converted to Korean won | Not currency hedged |
Because of its thematic concentration and early-stage industry characteristics, volatility is high, and sharp rises and falls can occur depending on related policy and geopolitical issues. It is advisable to manage the position size appropriately within your overall portfolio.
It is a useful reference for investors who want long-term exposure to the drone and unmanned systems theme. However, because thematic concentration volatility is high, those who want broader defense exposure should compare it with ITA, PPA and SHLD before deciding.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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