Behind the Ticker: DRNZ & REX Shares

Why It Matters

DRNZ gives investors a pure‑play exposure to the fast‑growing drone industry, while Rex’s crypto ETFs demonstrate how regulatory agility can unlock new yield opportunities, reshaping portfolio construction for modern investors.

Key Takeaways

• Rex’s drone ETF (DRNZ) offers pure-play UAV exposure globally.
• Index screens require ≥50% revenue from drones, cap $100M minimum.
• Fund balances pure-play (15% max) and diversified (5% max) holdings.
• Rex pioneers crypto products with SEC‑approved 40‑act staking ETFs.
• Anticipated 10‑15 year drone market growth of low‑mid teens percent.

Summary

Behind the Ticker’s latest episode spotlights Rex’s innovative product suite, from its pioneering crypto ETFs to the newly launched DRNZ drone exchange‑traded fund. Host Brad Roth interviews Bill, a former hedge‑fund equity researcher turned Rex research chief, who explains how the firm leverages deep fundamental analysis to create niche, high‑conviction offerings for retail and institutional investors. The conversation delves into the DRNZ index construction: companies must derive at least half of revenue from drones or UAV‑enabling technology, meet a $100 million market‑cap floor, and are weighted with caps of 15 % for pure‑play names and 5 % for diversified exposure. Partnering with Vetify, Rex ensures global coverage, with roughly half of holdings in North America and significant exposure to Australia, Europe and China. The fund’s periodic rebalancing captures rapid news‑driven price swings while avoiding concentration risk. Bill also highlights Rex’s crypto achievements, noting the firm’s first‑to‑market spot Solana and XRP staking ETFs filed under a 40‑act wrapper that issues 1099s instead of K‑1s. He emphasizes the regulatory diligence of Rex’s legal team in securing SEC approval, positioning the firm as a leader in crypto‑linked income products. For investors, the DRNZ ETF offers a direct play on a sector projected to grow at low‑mid‑teens annual rates over the next decade, driven by defense, industrial, delivery and emerging transportation use cases. Combined with Rex’s broader suite of leveraged, income‑focused and crypto products, the firm presents a diversified, forward‑looking platform for capitalizing on emerging technology trends.

Original Description

In this episode of Behind the Ticker, host Brad Roth of Thor Funds sits down with Bill Birmingham from REX Shares to dive into the DRNZ ETF, the market's only pure-play drone and unmanned aerial vehicle (UAV) fund.

They explore how REX sources emerging exposures, the generational shift in defense technology, and the massive commercial opportunities stretching far beyond the military-industrial complex.

Highlights Include:

How REX Shares stays close to retail flow to identify edge, and why their unique 40 Act crypto funds offer tax-efficient 1099 treatment (plus staking).

Why traditional funds dilute the disruptive drone technology sector with legacy aerospace holdings, and how DRNZ fills that gap.

A deep dive into the drone ecosystem, including the economics of modern warfare and how low-cost drones are creating a generational shift, as well as the current $3 billion agricultural market, last-mile delivery, eVTOL (air taxis), and the upcoming FAA BVLOS (Beyond Visual Line of Sight) rulemaking.

A look under the hood at DRNZ's modified market cap weighting, which balances pure-play innovators against established names.

Follow along with the conversation at: https://www.etf.com/sections/podcasts/behind-ticker-drnz-and-rex-shares

Learn more about DRNZ & REX Shares: https://www.rexshares.com/