Defiance Drone and Modern Warfare ETF

JEDI

Market cap $158M

The Defiance Drone and Modern Warfare ETF has high-beta exposure to modern defense and drone sectors, distinct from traditional defense ETFs. JEDI's unique weighting favors small, highly traded stocks, resulting in concentrated holdings and elevated volatility compared to sector peers. Recent catalysts, including a historic +50% U.S. defense budget request and Middle East conflict, have driven strong inflows and momentum into JEDI.

Shares of Unusual Machines surged nearly 50% after The Wall Street Journal reported the Pentagon is pursuing a funding deal with the drone company. Donald Trump Jr. is a shareholder of Unusual Machines and an advisory board member.

Red Cat Holdings Inc (NASDAQ:RCAT) shares are trading higher Thursday morning amid a sector-wide rally has been ignited by reports that the Trump administration is exploring Pentagon funding packages, including loans and equity stakes, for drone firms.

FORT LAUDERDALE, Fla., April 27, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs, a leading thematic and next-generation ETF issuer, today announced that the Defiance Drone & Modern Warfare ETF (NYSE Arca: JEDI) has surpassed $100 million in assets under management (as of 04/20/2026), reaching this milestone in less than seven months since its inception on September 25, 2025.

The Defiance Drone and Modern Warfare ETF offers targeted exposure to next-generation warfare technology, such as unmanned vehicles, as part of the defense modernization trends. JEDI is rated Buy, driven by robust US defense spending, a $1.5T 2027 budget outlook, and multi-year growth in munitions and advanced systems. Top holdings like RDW and ONDS are positioned for substantial growth via contracts in spacecraft infrastructure, UASs, and private defense networks.

Since the start of Operation Epic Fury at the end of February, Brent crude oil prices have risen as high as $150 a barrel as the Strait of Hormuz has been effectively closed by Iran.  Panic over supply is driving energy prices higher, and consumers are experiencing it at the pump with soaring gasoline prices.

Key Takeaways: Defense ETFs now hold $42 billion in assets with $9 billion in inflows this year amid rising geopolitical tensions. Eight out of nine new defense ETF launches since 2025 have been global or international offerings.

The defense industry is transforming into one of the most interesting areas of the market, particularly for investors seeking a stable growth alternative to higher-beta sectors like technology.

Drone-focused ETFs like JEDI gain traction as the Middle East conflict boosts demand for UAV makers, highlighting a shift in defense investing strategies.

Why should oil and gas companies drill? Prices have been — and still are — too low for them to bother.