DUTY ETF is a passive product that tracks the performance of the Solactive U.S. Defense Index. It focuses on companies whose revenue base is directly tied to the defense industry, giving investors one-step access to the themes of defense manufacturing and information security demand.

It suits long-term investors who want to reduce the burden of picking individual companies and who can tolerate the volatility of the U.S. defense and cybersecurity themes.

It is a passive (index-tracking) ETF managed by Ora ETF.

This product follows an index built around companies with a revenue base linked to defense businesses. Because it covers not only traditional defense manufacturing but also areas tied to digital security and defense technology demand, the performance of a particular sub-sector can affect overall results.

• An index that covers both the defense industry and cybersecurity-related areas
• A manager policy of donating part of its operating profits to organizations that support military veterans

Assets under management (AUM) stand at $3.6M, and the total expense ratio (Expense Ratio) is 0.45% per year.

DUTY ETF has a short track record since inception, so there is limited data for assessing its trading conditions and index tracking results across different market phases. It is therefore necessary to look beyond fees alone and also check trading convenience, construction rules, and theme concentration.

The performance of the defense theme can be affected by the government procurement environment, technology demand, geopolitical variables, and individual companies' order flows. Because this product has a limited long-term performance history for comparison, it is more appropriate to first review the index's inclusion principles and the nature of its theme exposure than to focus on short-term moves.

Defense and cybersecurity are areas sensitive to policy and technological change, so related fund flows can also shift as market expectations change. Thematic products can be more heavily influenced by sector news and trading conditions than broad market products, so liquidity and bid-ask conditions should be checked separately before buying.

One advantage is that you can gain exposure to the defense and information security themes through a single product, but you should also consider the limited track record and distribution history, as well as sector concentration risk.

XLI ETF, shown in the table, broadens its scope to industrials as a whole, so its exposure differs from DUTY ETF, which targets only the defense theme. ITA ETF and PPA ETF are comparison candidates centered on aerospace and defense, while AIRR ETF covers the broader theme of an American industrial revival. XAR ETF is built differently even within the same defense industry, so it is worth comparing inclusion rules and sector concentration together.

When considering DUTY ETF, you should check the index construction rules, trading convenience, and distribution policy, separately from your expectations for the defense theme itself. For products with a limited track record in particular, it is important to review disclosure materials and actual trading conditions.

Defense industry policy, the government procurement environment, and shifts in technology demand can affect earnings expectations and share prices of the included companies. In addition, even when the broader market is stable, theme-concentrated products can see greater volatility from sector news and changes in orders, and for investors who hold Korean won, exchange rate fluctuations are a separate risk.

DUTY ETF can be considered by those who want index-based access to the themes of the U.S. defense industry and information security. However, given the lack of distribution history, the limited track record, and the theme concentration, it is advisable to compare exposure scope and trading conditions against XLI ETF, ITA ETF, PPA ETF, AIRR ETF, and XAR ETF before making a decision.