WAR ETF: aerospace, defense, and technology exposure

What the WAR ETF Is and What It Owns

The WAR ETF is an actively managed fund on the New York Stock Exchange (NYSE) that pairs defense manufacturers with foundational enterprise hardware. U.S. Global Investors designed the portfolio around what its leadership identifies as an intersection between national defense rebuilding and technological modernization.

According to Frank Holmes, Chief Executive Officer (CEO) and Chief Investment Officer (CIO) of U.S. Global Investors, modern defense spending directs capital toward drones, satellites, Artificial Intelligence (AI), and cybersecurity.

The portfolio structure reflects this dual objective directly. In its September 30, 2026 sector breakdown, U.S. Global Investors reported an asset distribution of 50 percent in aerospace and defense, 30 percent in semiconductors, 10 percent in cybersecurity, and 10 percent in data centers.

While the fund overview page also mentions homeland security as an area of focus, the four primary sectors form the operational core of the holdings. U.S. Global Investors selects names using what it calls its Smart Beta 2.0 quantamental process. This workflow identifies macro themes shaped by government policy, screens candidate firms for profitability, volatility, and liquidity, and completes selection through fundamental research.

Investors researching defense ETFs must recognize that WAR ETF holds substantial technology exposure alongside military suppliers. It is not an unmixed defense fund, and it is not a pure drone basket.

Holdings Concentration in the WAR ETF Portfolio

The top holdings in WAR ETF demonstrate a clear balance between pure defense contractors and commercial semiconductor producers. As of October 23, 2026, the fund managed $32,071,640 in net assets across 1,150,000 shares outstanding. Its largest single equity holding was Micron Technology at 7.39 percent of net assets, followed by AXT Inc at 6.13 percent and NVIDIA at 4.16 percent. Combined, these three semiconductor positions account for 17.68 percent of fund assets.

The direct drone and counter-drone names are just as prominent. AeroVironment stood as the second-largest holding at 7.28 percent, while DroneShield ranked third at 7.03 percent. Together, these two direct counter-unmanned and drone positions make up 14.31 percent of net assets. Axon Enterprise accounted for 5.42 percent, Cloudflare represented 4.75 percent, National Presto Industries stood at 4.37 percent, and Innovative Solutions and Support stood at 4.17 percent.

Further down the roster, the fund held Palantir at 3.57 percent, Karman Holdings at 3.48 percent, CrowdStrike at 2.54 percent, and a cash-like position of 4.20 percent in the First American Government Obligations Fund.

Overall fund valuation metrics published as of September 30, 2026, showed a weighted average market capitalization of $364.35 billion, a price-to-earnings ratio of 67.69, a price-to-book ratio of 6.53, and a return on equity of 9.94 percent. Because holdings adjust continually under active management, check the current positions on the official U.S. Global Investors WAR page.

WAR ETF vs Other Defense and Drone ETFs

Comparing WAR ETF against other defense and drone funds highlights fundamental differences in mandate, selection rules, and active oversight.

Lima Stock Exchange Listing for Peruvian Investors

In October 2026, U.S. Global Investors listed WAR on the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), establishing Peru as the first market outside the United States where the fund is publicly available.

WAR represents the fourth fund from U.S. Global Investors introduced to the Peruvian market. It follows JETS (listed in Lima December 2020), GOAU (November 2024), and SEA. In its cross-listing announcement, the manager cited data from the Stockholm International Peace Research Institute (SIPRI) noting that global military spending reached $2.89 trillion in 2025.

That total marked the eleventh straight year of expansion, reaching 2.5 percent of global gross domestic product, which represents the highest defense share of worldwide economic output recorded since 2009.

How to Check the WAR ETF Before Using It

Review the complete portfolio roster on the issuer site to determine whether the blend of defense contractors and semiconductor makers in the WAR ETF matches your target asset allocation.

Takeaway: on the issuer data we read (holdings as of October 23, 2026), WAR suits a reader who wants defense names mixed with AI-hardware and cybersecurity holdings in one actively managed fund, and it does not suit a reader who wants a drone-only basket; if the semiconductor half duplicates what you already own, a drone ETF or a broad aerospace and defense ETF fits better.

• Confirm whether the 50 percent technology sleeve creates duplicate exposure if you already own mega-cap technology or semiconductor funds holding firms like NVIDIA and Micron Technology.
• Examine the international portfolio share, noting that WAR ETF purchases developed-market foreign equities such as DroneShield in Australia, Rheinmetall in Germany, and Saab AB, as the fund holds foreign securities.
• Check secondary market liquidity, share volume, and deviations between trading prices and Net Asset Value (NAV), as the fund managed $32,071,640 across 1,150,000 shares on October 23, 2026, and shares may trade at a premium or discount to NAV.
• Assess your specific thesis against peer funds using the defense ETF comparison tool, especially if your objective requires a dedicated defense aerospace basket such as the ITA ETF or pure defense tech like the SHLD ETF.
• Compare fee structures across thematic products, weighing the 0.60 percent active fee of WAR against alternatives like JEDI ETF at 0.69 percent.
• Review whether broader defense industry budget allocations tracked in our US defense budget guide align with the fund's heavy reliance on government procurement contracts.