GET DAILY SIGNALSAnalyzing the U.S. Defense ETF (DUTY): A Thematic Look at Defense and Cybersecurity Holdings
Key Takeaways
- The U.S. Defense ETF (DUTY) is a recently launched thematic exchange-traded fund that tracks the Solactive US Defense Index, holding roughly 52 companies tied to defense, military technology, space, and cybersecurity.
- Portfolio exposure is split almost evenly between technology (about 50%) and industrials (about 50%), reflecting a blend of next-generation defense software and traditional defense hardware.
- Its largest positions include Palantir Technologies (PLTR), Lockheed Martin (LMT), General Dynamics (GD), Northrop Grumman (NOC), and L3Harris Technologies (LHX).
- Over the past 30 days, DUTY has moved only modestly higher (roughly +1.5%), while over the trailing quarter it has declined about 8%, indicating a range-bound but volatile pattern.
- The fund carries a 0.45% gross expense ratio and uses a replication strategy, investing substantially all of its assets in index components.
- Performance has been shaped by cybersecurity and defense-technology names alongside traditional defense primes, against a backdrop of elevated global defense spending and geopolitical tensions.
- For additional detail on this ticker's valuation levels and technical signals, explore the Price Targets and Forecast pages.
- Discover new opportunities across the market with the Trending AI Robots tool.
Understanding the U.S. Defense ETF (DUTY)
The U.S. Defense ETF seeks to track the performance, before fees and expenses, of the Solactive US Defense Index. The index is composed of equity securities of companies that generate at least 50% of their revenues from defense-related categories, including defense systems and military platforms, defense technology, defense logistics, simulation and mission support, and cybersecurity and digital defense infrastructure. The fund is non-diversified and generally employs a replication strategy, investing substantially all of its assets in the component securities of the index.
Launched in April 2026 by Aura ETFs, DUTY is a passive, thematic product with a gross expense ratio of 0.45%. Its portfolio is concentrated at the top: the ten largest holdings account for a majority of assets, with Palantir Technologies (PLTR) near a 10% weighting followed by defense primes Lockheed Martin (LMT), General Dynamics (GD), Northrop Grumman (NOC), and L3Harris Technologies (LHX). The sector mix is roughly evenly divided between technology and industrials, giving the fund meaningful exposure to both software-driven cybersecurity firms and capital-intensive defense contractors. This structure means the fund's behavior reflects a blend of growth-oriented technology valuations and steadier, contract-driven defense cash flows. I also checked this using Tickeron’s AI Screener to see how the holdings align with broader industry trends.
Industry and Thematic Landscape
The broader defense and security market is being shaped by several structural forces. Sustained geopolitical tensions and rising cybersecurity threats have supported multi-year government commitments to defense procurement and modernization, while initiatives aimed at reshoring advanced technology manufacturing have reinforced investment in domestic supply chains. At the same time, defense budgets are subject to political and fiscal cycles, meaning that spending growth is not guaranteed and can fluctuate with policy priorities.
Within this environment, cybersecurity and software-centric defense names have historically traded at premium valuations, making them more sensitive to changes in interest rates and risk appetite. Traditional defense primes, by contrast, tend to generate steadier revenue from long-dated government contracts. Monetary policy and inflation expectations matter for both groups: higher rates pressure growth-stock valuations, while persistent inflation can affect contractor margins and budget purchasing power. These cross-currents help explain why a diversified defense-theme ETF can appear range-bound even when the underlying industry fundamentals remain constructive. From what I see, this balance is worth watching closely as rates and budgets evolve.
Performance and Positioning Snapshot
DUTY's recent price action has been more volatile than its modest headline move suggests. Over the trailing 30 days, the fund's adjusted closing price rose roughly 1.5%, but within that window it rallied toward the upper end of its recent range before pulling back. Over the trailing quarter, the fund declined approximately 8%, reflecting a broader consolidation after the initial post-launch trading period.
This pattern is consistent with the fund's dual technology-industrial composition. Software-focused cybersecurity and data-analytics holdings can drive sharp short-term swings when sentiment shifts, while the steady contribution of defense primes tends to dampen the overall move. The fund's relatively small asset base is also characteristic of a newly launched thematic product, and low or uneven trading volume can amplify intraday and short-term volatility relative to larger, more established funds. One thing that stands out here is how the mix of holdings influences day-to-day swings.
2026 Outlook and Key Factors to Monitor
Looking ahead, several structural factors are likely to influence DUTY. Government defense budgets and procurement cycles remain central, as multi-year appropriations and modernization programs directly affect the revenue of both primes and emerging defense-technology suppliers. Interest-rate policy is another key variable: sustained higher rates tend to weigh on growth-oriented cybersecurity and software valuations, while a more accommodative path could support multiple expansion across the technology sleeve.
Inflation and supply-chain dynamics will continue to shape contractor margins, while geopolitical developments can rapidly shift sentiment and near-term spending priorities. The earnings trajectory of the fund's largest holdings, particularly within cybersecurity and data analytics, will also be important given their outsized weightings. Finally, as a young thematic product, DUTY's ability to attract assets and tighten trading spreads will influence its long-term viability as an efficient vehicle for defense exposure. Investors should monitor these themes as part of a broader assessment of sector rotation and risk appetite rather than relying on short-term price moves. I’m watching this closely as policy and market conditions shift.
Using Tickeron’s AI Screener for Defense Themes
In my own analysis of thematic funds like this one, Tickeron’s AI Screener has proven useful for quickly scanning defense and cybersecurity names against technical and fundamental filters. It surfaces comparable holdings and trends across sectors without the need for manual review, helping refine ideas around exposure and positioning in a structured way.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
I’m a trader and independent researcher. My interest lies at the intersection of financial markets, algorithms, and capital management. I develop data-driven tools and strategies and study algorithmic approaches to market analysis. I help turn complex market data into clear insights and practical systems. I believe technology should support, not replace, investment thinking
DUTY's RSI Oscillator recovers from oversold territory
The RSI Indicator for DUTY moved out of oversold territory on November 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 2 similar instances when the indicator left oversold territory. In 2 of the 2 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 6 of 6 cases where DUTY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
Following a +5.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where DUTY advanced for three days, in 27 of 30 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
DUTY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 5 of 5 cases where DUTY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DUTY as a result. In 6 of 6 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 90%.
The Moving Average Convergence Divergence Histogram (MACD) for DUTY turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 3 similar instances when the indicator turned negative. In 3 of the 3 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
DUTY moved below its 50-day moving average on November 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DUTY crossed bearishly below the 50-day moving average on November 12, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 3 of 4 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DUTY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 73%.
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