ETF Evaluator: U.S. Defense ETF () Follow This ETF

U.S. Defense ETF Overview

U.S. Defense ETF (DUTY) is a passively managed Sector Equity Industrials exchange-traded fund (ETF). AURA ETFs launched the ETF in 2026.

The investment seeks to track the performance, before fees and expenses, of the Solactive U.S. Defense Index. The index includes equity securities of companies that generate at least 50% of their revenues from one or more of the following four defense categories that are Defense Systems & Military Platforms, Defense Technology; Defense Logistics, Simulation & Mission Support; and Cybersecurity & Digital Defense Infrastructure. The adviser attempts to invest all, or substantially all, of its assets in the component securities that make up the index. It is non-diversified.

About U.S. Defense ETF (DUTY)

There are 2 members of the management team with an average tenure of 0.32 years: Andrew Hicks (2026) and Kimberly Chan (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Solactive U.S. Defense USD index with a weighting of 100%. U.S. Defense ETF has 52 securities in its portfolio. The top 10 holdings constitute 60.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

U.S. Defense ETF is part of the Equity global asset class and is within the Sector Equity ETF group. U.S. Defense ETF has 3.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.7% There is 3.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). U.S. Defense ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $2 million in total assets, which is below the $1 billion average for the Industrials category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

DUTY Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The U.S. Defense ETF expense ratio is average compared to funds in the Industrials category. U.S. Defense ETF has an expense ratio of 0.45%, which is 12% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. U.S. Defense ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 40% for the Industrials category.

Recently, in the month of July 2026, U.S. Defense ETF returned -0.4%, which earned it a grade of B, as the Industrials category had an average return of -4.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

U.S. Defense ETF has a trailing yield of 0.00%, which is below the 1.11% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

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