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REX Drone ETF (DRNZ) ETF Analysis

The REX Drone ETF (DRNZ) offers focused exposure to the global drone and unmanned aerial vehicle (UAV) industry, encompassing both defense and commercial applications. With assets under management of $0.08 billion and an expense ratio of 0.65%, DRNZ seeks to invest in companies deriving significant revenue from drone technologies. A key differentiator is its targeted approach to the drone economy, providing investors with a specialized investment vehicle in this emerging sector.

REX Drone ETF (DRNZ) ETF — Price, Holdings & Analysis

The REX Drone ETF (DRNZ) offers focused exposure to the global drone and unmanned aerial vehicle (UAV) industry, encompassing both defense and commercial applications. With assets under management of $0.08 billion and an expense ratio of 0.65%, DRNZ seeks to invest in companies deriving significant revenue from drone technologies. A key differentiator is its targeted approach to the drone economy, providing investors with a specialized investment vehicle in this emerging sector.

ETF Overview

The fund offers targeted exposure to the global drone and unmanned aerial vehicle (UAV) economy, spanning both defense and commercial applications. It seeks to invest at least 80% of its assets in companies deriving major revenue from drones/UAV-enabling technologies.
The REX Drone ETF (DRNZ) aims to capture the growth potential of the global drone and unmanned aerial vehicle (UAV) economy. DRNZ invests at least 80% of its assets in companies that generate a significant portion of their revenue from the drone industry, covering both defense and commercial applications. This targeted approach allows investors to gain specific exposure to the drone market, which includes manufacturers, service providers, and technology developers. The fund's top holdings reflect this focus, with significant allocations to companies like Ondas Inc (11.42%), AeroVironment Inc (9.99%), and Droneshield Ltd (9.91%). These companies are involved in various aspects of the drone ecosystem, from drone manufacturing and software to counter-drone technology. The fund's country exposure is heavily weighted towards 'Other' at 98.3%, with a small allocation to Japan at 1.7%. This indicates a focus on companies operating outside of major markets, potentially capturing niche players in the drone industry. DRNZ provides a way for investors to participate in the growth of the drone market without investing in individual companies, offering diversification within this specific sector.

Risk Metrics

Investing in the REX Drone ETF (DRNZ) involves specific risks related to its concentrated investment strategy. The fund's focus on the drone industry means that its performance is closely tied to the growth and development of this sector, making it vulnerable to industry-specific downturns or technological disruptions. The fund's top holdings represent a significant portion of its assets, with Ondas Inc, AeroVironment Inc, and Droneshield Ltd accounting for over 30% of the portfolio. This concentration increases the impact of any negative news or performance issues related to these companies. The expense ratio of 0.65% is higher than some broader market ETFs, which can create a drag on returns, especially in periods of lower performance. With a 3-year Beta of 0.00, the fund's volatility is not yet established relative to the broader market, but its specialized focus suggests it may exhibit higher volatility than more diversified equity ETFs. Investors should be aware of these concentration and sector-specific risks before investing in DRNZ.

Expense Ratio

0.65%

Top Holdings

Sector Allocation

  • Other: 98.3%
  • Japan: 1.7%

Dividend Yield

0.00%
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Risk Metrics

  • Beta: 0.00

Questions & Answers

What is DRNZ and what does it track?

The REX Drone ETF (DRNZ) is an exchange-traded fund that provides targeted exposure to the global drone and unmanned aerial vehicle (UAV) economy. Launched in 2025, DRNZ seeks to invest at least 80% of its assets in companies that derive a significant portion of their revenue from the drone industry, encompassing both defense and commercial applications. The fund's holdings include companies involved in drone manufacturing, software development, and related services. As of 2026-03-15, DRNZ has $0.08 billion in assets under management and a NAV of $27.26.

What is the expense ratio for DRNZ?

The expense ratio for the REX Drone ETF (DRNZ) is 0.65%. This means that for every $10,000 invested in the fund, $65 is used to cover the fund's operating expenses annually. While there isn't a direct category average readily available for drone-specific ETFs, the expense ratio is higher than broader US Equity ETFs, where the average can range from 0.10% to 0.50%. this may be worth researching expense ratio when evaluating the potential returns of DRNZ.

What are the top holdings in DRNZ?

As of 2026-03-15, the top holdings in the REX Drone ETF (DRNZ) are Ondas Inc (ONDS) at 11.42%, AeroVironment Inc (AVAV) at 9.99%, and Droneshield Ltd (DRO.AX) at 9.91%. Other significant holdings include Next Vision Stabilized Systems Ltd (NXSN.TA) at 8.19% and Elsight Ltd (ELS.AX) at 6.16%. These companies represent a significant portion of the fund's assets and are key players in the drone and unmanned aerial vehicle industry. These holdings reflect the fund's strategy of investing in companies that derive a significant portion of their revenue from the drone industry.

Is DRNZ a good long-term investment?

Evaluating DRNZ as a long-term investment requires careful consideration of its specific focus and the potential growth of the drone industry. DRNZ offers targeted exposure to a niche sector, which can provide high growth potential but also carries inherent risks. The fund's expense ratio of 0.65% should be factored into long-term return expectations. Past performance does not guarantee future results. Investors should assess their risk tolerance and investment goals before considering DRNZ as a long-term investment.

How does DRNZ compare to similar ETFs?

DRNZ is relatively unique in its specific focus on the drone industry, making direct comparisons to other ETFs challenging. While other technology or aerospace and defense ETFs may have some overlap in holdings, DRNZ offers a more concentrated exposure to the drone market. With AUM of $0.08 billion, DRNZ is smaller than many broad-based ETFs, which can impact liquidity and trading costs. The expense ratio of 0.65% is also higher than many broader market ETFs, which could affect long-term performance relative to lower-cost alternatives. these may be worth researching factors when comparing DRNZ to other investment options.

Does DRNZ pay dividends?

As of 2026-03-15, the REX Drone ETF (DRNZ) has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders. The fund's focus is on capital appreciation through investments in the drone industry, rather than generating income through dividends. Investors seeking income-generating investments may want to consider other ETFs with higher dividend yields.