What Is the KDEF ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The PLUS Korea Defense Industry Index ETF (KDEF) is a non-diversified thematic ETF that concentrates its investments in listed companies closely tied to South Korea's defense industry. This guide covers the outlook, expense ratio, holdings, and alternative ETFs to help inform your investment decisions.
SubscribeWhat Is the PLUS Korea Defense Industry Index ETF?
The fund tracks the Korea Defense Industry Index and builds its portfolio from listed companies closely tied to South Korea's defense industry. It is a non-diversified fund that invests a substantial portion of its net assets in the index's constituent stocks.
It suits investors who want concentrated exposure to the growth theme of the Korean defense industry.
The ETF is passively managed (index tracking) and is operated by Exchange Traded Concepts.
How Do You Invest in the PLUS Korea Defense Industry Index ETF?
| Item | Details |
|---|---|
| Tracked Index | Korea Defense Industry Index |
| Rebalancing Frequency | Periodic rebalancing |
| Management Style | Passive (index tracking) |
| Dividend Frequency | Limited dividend history available |
| Total Expense Ratio | 0.65% |
The fund has a non-diversified structure that holds listed companies with a high degree of exposure to South Korea's defense industry at their index weights. It invests most of its net assets in the index's constituents to pursue concentrated exposure to the defense theme.
- US-listed, yet provides access to the Korean defense theme
- Non-diversified structure results in high concentration in related stocks
PLUS Korea Defense Industry Index ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $85.9M, and the total expense ratio is 0.65% per year.
PLUS Korea Defense Industry Index ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReflecting the external policy environment and expectations around defense budgets, volatility across the related theme tends to be high. In the short term, the fund reacts sensitively to news about policy and export contracts.
Investor interest in the defense theme continues, and as a newer thematic ETF, the fund operates in an environment where fund flows are relatively volatile. Given its regional and sector-specific nature, it tends to be driven more by theme-related news flow than by the broader market.
PLUS Korea Defense Industry Index ETF Pros and Cons
Its concentrated exposure to the Korean defense theme is a strength, but individual stock risk from the non-diversified structure and currency fluctuations are drawbacks.
💪 Key Strengths
⚠️ Points to Watch
PLUS Korea Defense Industry Index ETF Alternatives and Related Products
The IXN, IXJ, EUFN, PICK, and IXC ETFs in the comparison table are all global sector ETFs whose regional and thematic focus differs from KDEF, so they serve as category references rather than direct comparisons. KMCA, a Korean manufacturing theme ETF from the same issuer, is an option if you want to diversify across Korean industries beyond defense. For exposure to the broader US defense industry, US defense ETFs such as ITA, PPA, and XAR are alternatives, and EWY is another choice if you want diversified exposure to the overall Korean market.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IXN | iShares Global Tech ETF | $134.69 | -5.1% | $9.4B | 0.37% | 0.25% | +22.7% |
 IXJ | iShares Global Healthcare ETF | $112.66 | +0.8% | $4.6B | 0.38% | 1.28% | +23.4% |
 IXC | iShares Global Energy ETF | $64.19 | +1.5% | $3.4B | 0.37% | 2.45% | +54.5% |
 EUFN | iShares MSCI Europe Financials ETF | $37.69 | -1.3% | $3.0B | 0.48% | 4.39% | +10.9% |
 PICK | iShares MSCI Global Metals & Mining Producers ETF | $54.79 | -2.6% | $2.2B | 0.39% | 2.41% | +17.6% |
PLUS Korea Defense Industry Index ETF Investor Checkpoints
Here are the points to review before investing in KDEF. As a theme-concentrated ETF, its structural features should be checked in advance. Given its non-diversified nature, it requires a different approach to risk management than a typical core ETF.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Annual fee applies |
| 🎯 Concentration | Trends in top holding weights under the non-diversified structure | Concentrated in the defense theme |
| 💱 Currency | Impact of exchange rate moves on won-denominated assets | No currency hedge applied |
| 📰 Policy Sensitivity | News flow on defense budgets and export contracts | Policy variables remain |
Individual stock concentration from the non-diversified structure, along with volatility driven by geopolitical and policy variables, are the main short-term risk factors. As a thematic ETF, its share price can react sensitively to related news.
It is a suitable choice for investors seeking concentrated exposure to the Korean defense theme, and those who want diversification are advised to adjust their weighting alongside alternatives such as KMCA and EWY.
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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