Moving into February, advisors and investors can better understand which portfolio strategies and thematic exposures might be well-positioned this year.
One investment theme that enjoyed a particularly prosperous January was the drone and unmanned aerial vehicle (UAV) industry. This can be observed through the performance of the REX Drone ETF (DRNZ). As of January 30, 2026, the fund is up 14.92% year-to-date.
The one-month progress report for DRNZ is certainly impressive. Still, it’s crucial to understand why the drone industry is doing so well as of late. To start, investing in drone and UAV companies provides exposure to sectors beyond the defense industry. However, +defense is certainly a key part of the equation.
The agriculture, infrastructure, and commercial delivery sectors, among others, also employ drones and UAVs. Furthermore, gaining exposure to drone-makers and similar companies can also help portfolios capitalize on the AI craze. Drones and UAVs play a major role in automation.
Individual Stocks Soared in the New Year
Thematic trends are not the only factor working in the favor of DRNZ, either. Many of the key holdings within DRNZ had particularly strong January performances, helping to drive the fund’s returns up even higher.
This includes Red Cat Holdings. The U.S.-based drone provider started the new year on a strong note, ending the month up about 70.24%. High pre-announced sales numbers for Q4 2025 drove the performance, along with a recently-announced FCC ban on sales of foreign-made drones and drone parts.
Red Cat Holdings isn’t the only company within DRNZ’s portfolio that saw strong results in the first month of the year. Battery manufacturer Amprius Technologies also enjoyed a fortuitous January, and was up about 57.67% by the time the month ended. Amprius has brought in great results in part due to its highly advanced battery technology. This offers a number of different applications in the aerospace and electric sectors.
Altogether, the blend of sector-wide momentum and strong individual stock performances is making thematic funds like DRNZ an increasingly captivating option for investors seeking deep growth opportunities. For those looking to diversify while tapping into some of the most compelling individual sectors on the market, thematic ETFs may be the way to go.
For more news, information, and strategy, visit ETFDB.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for DRNZ, for which it receives an index licensing fee. However, DRNZ is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of DRNZ.
