Defiance Drone & Modern Warfare ETF surpasses $200 million in assets

The Defiance Drone & Modern Warfare ETF (JEDI) has surpassed $200 million in assets under management (AUM) as of August 21, 2026. This milestone follows a rapid growth period where the fund's assets doubled in just four months after previously crossing the $100 million mark in April 2026.

The growth follows the fund's recent decision to provide indirect exposure to Shield AI, a privately held defense autonomy company known for its Hivemind AI pilot technology. JEDI achieves this exposure through an interest in a single-asset special purpose vehicle (SPV), rather than direct ownership of private shares. Under a prospectus update from July 2026, the fund is permitted to allocate up to 15% of its net assets to non-publicly traded companies that qualify for the BITA Drone & Modern Warfare Select Index.

While the inclusion of private defense technology firms offers broader market access to autonomous systems and military AI, it introduces specific risks. These include potential illiquidity of SPV interests, valuation complexities based on fair value, and the possibility of increased tracking error relative to the underlying index.