On Monday, U.S. Global Investors expanded its fund library with the release of the U.S. Global Technology and Aerospace & Defense ETF (WAR).
WAR is an actively managed fund that seeks to generate exposure to the aerospace, advanced technology, and defense sectors. The fund operates with a net expense ratio of 0.60%.
As the fund’s title implies, WAR’s portfolio largely consists of technology, defense, and aerospace companies. Additionally, much of the fund’s technology portfolio will be concentrated in the semiconductor industry.
When it comes to choosing assets to include in its portfolio, WAR mixes internal research with a blend of quantitative and fundamental analysis. The fund may invest in companies across the cap spectrum.
This ETF may invest in companies within or outside the United States. This foreign exposure may include companies based in emerging markets as well. Per the fund prospectus, WAR may have notable exposure to companies within the United States, Europe, Canada, Australia, and Turkey, though that may change from time to time.
Opportunities in Defense Spending
“We believe this could be a pivotal moment for aerospace and defense investing,” added Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors. “With rising global defense spending, increased geopolitical tensions and the rapid adoption of emerging technologies like artificial intelligence (AI) and cybersecurity, the WAR ETF seeks to capture innovation and growth in these critical industries. WAR offers investors a way to access companies benefiting from multi-year defense investment trends and technological advancements.”
Traders that invested in defense companies were likely to see good results in 2024, and the current geopolitical climate may enable these companies to grow further in the new year. WAR’s actively led portfolio team may be able to help investors capitalize on global companies that are leading the way in aerospace and defense innovation.
U.S. Global Investors possesses extensive experience in providing targeted sector exposure through the ETF wrapper. One of the largest U.S. Global ETFs, the U.S. Global Jets ETF (JETS ), has well over $1.1 billion in assets under management.
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