REX Shares, the US-based exchange-traded fund specialist known for its alternative and thematic strategies, has launched what it calls the world’s first pureplay Drone ETF, offering investors targeted exposure to the fast-growing global drone and unmanned aerial vehicle (UAV) economy.
The fund, listed on Nasdaq under the ticker DRNZ, is designed to track companies driving growth across both defence and commercial drone applications. It provides a focused alternative to traditional aerospace or defence ETFs, many of which have only limited exposure to UAV technologies despite their increasing role in logistics, agriculture and infrastructure monitoring.
The launch comes amid a surge of investor interest in automation, robotics and military technology, themes that have outperformed broader equity indices in recent years. The global drone market, estimated at around $30bn in 2024, is forecast to more than double by the mid-2030s as adoption accelerates across government, industrial and consumer sectors.
Drone ETF benchmarked to VettaFin Drone Index
The REX Drone ETF is benchmarked to the VettaFi Drone Index (VDRONE), which tracks a global universe of companies deriving a meaningful share of revenues from drone-related businesses. The index includes both “pureplay” firms (those earning at least half their revenue directly from drone production or enabling technologies) and diversified aerospace and defence companies with established UAV programmes.
The ETF aims to capture the breadth of the drone economy, from military reconnaissance and surveillance to commercial delivery networks, agricultural imaging and AI-enabled industrial inspection. The technology’s rapid maturation has shifted drones from niche defence tools to essential assets for automation and data collection.
Greg King, founder and chief executive of REX, said the new ETF seeks to give investors authentic, concentrated access to an emerging technological revolution reshaping sectors from logistics to environmental monitoring. The firm believes drones will play a central role in the evolution of supply chains, climate data gathering and precision agriculture as both hardware and AI capabilities advance.
Early opportunity to buy structural growth story
For investors, DRNZ represents an early opportunity to tap into this structural growth trend through a diversified portfolio of global innovators rather than a handful of high-profile defence contractors. The ETF will include holdings across North America, Europe and Asia, reflecting the globalisation of drone manufacturing and regulatory momentum behind civilian UAV adoption.
The launch extends REX’s reputation for niche and first-to-market exchange-traded products. The firm, based in Connecticut, has introduced a range of unconventional strategies including the first US-listed Solana ETF with on-chain staking rewards, leveraged single-stock ETFs tied to technology and cryptocurrency names such as Nvidia, Tesla and Bitcoin, and a series of option-based income products.
With DRNZ, REX is betting that drones, long associated with warfare, will increasingly define the next phase of industrial automation and aerial data infrastructure, offering investors exposure to one of the most dynamic corners of the technology economy.
