New Defense ETF DUTY Targets Modern Warfare and Gives Back to U.S. Veterans

Inside the Strategy

The U.S. Defense ETF seeks to track the Solactive U.S. Defense Index, targeting U.S.-listed companies that derive at least 50% of their revenues from defense-related activities.

The index is built around four key pillars of the defense ecosystem:

• Military systems and platforms
• Defense technology
• Logistics and mission support
• Cybersecurity and digital infrastructure

This approach blends traditional defense contractors with next-generation players, reflecting how modern warfare is increasingly driven by software, data, and cyber capabilities.

Notably, the strategy allocates up to 25% to cybersecurity companies, underscoring the growing importance of digital defense in national security frameworks.

Portfolio Snapshot

As of launch, the portfolio includes 49 holdings and is anchored by a mix of established defense leaders and emerging technology players.

Top holdings include Palantir Technologies (PLTR, 9.22%), L3Harris Technologies (LHX, 8.30%), Lockheed Martin (LMT, 8.12%), Northrop Grumman (NOC, 8.10%), General Dynamics (GD, 8.03%), Teledyne Technologies (TDY, 4.37%), Rocket Lab (RKLB, 4.29%), Curtiss-Wright (CW, 3.96%), Palo Alto Networks (PANW, 3.30%), and CrowdStrike Holdings (CRWD, 3.25%).

With a 0.45% management fee, DUTY offers a rules-based approach to accessing one of the most strategically important sectors in today’s market.

Why Defense. Why Now

Defense spending is increasingly viewed as structural, not cyclical.

Rising geopolitical tensions, accelerated military modernization, and the growing threat of cyber warfare are reshaping how governments allocate capital. This shift is driving sustained demand across both physical and digital defense capabilities.

DUTY translates these macro trends into a focused equity exposure tied directly to the companies building the next generation of defense infrastructure.

A Broader Definition of Defense

One of the ETF’s key differentiators is its expanded view of the defense ecosystem.

Beyond traditional contractors, the fund includes companies involved in simulation, mission support, and cybersecurity, areas that are becoming essential to modern military readiness.

This broader exposure allows investors to participate not just in defense spending, but in the innovation layer powering it.

Rob Oliver, Founder and CEO of Aura ETFs, highlighted the firm’s philosophy at launch:

“The ETF industry is innovating faster than ever, with increasingly complex strategies launching each year. But many investors and advisors are looking for ETFs that have a clearly defined role in portfolios. Aura was founded to build strategies designed with that discipline in mind.”

Investing with Purpose

Beyond its investment strategy, DUTY incorporates a social commitment aligned with its theme.

Aura ETFs plans to donate 10% of the fund’s management fee revenue to charitable organizations supporting U.S. military veterans, tying the fund’s success to a broader mission within the defense community.

About Aura ETFs

Aura ETFs Inc. is an ETF sponsor building a global platform centered on innovative thematic and income-oriented strategies. The firm focuses on creating ETFs with clear portfolio roles, disciplined construction, and measurable outcomes. By combining industry investment expertise with scalable ETF design, Aura seeks to deliver differentiated exposures and dependable solutions tailored to long-term investors. The launch of DUTY marks the firm’s debut ETF and the first step in developing its broader thematic investment platform. More information is available at www.aura-etfs.com.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.