At a glance
FOWF charges 0.49% a year, above the 0.4% average of the 6 funds most like it (the 4th cheapest of 7). It has $15.8M in assets, the 7th largest of that group; it paid 0.17% of its price in distributions over the past 12 months, quarterly. Its ten largest positions make up 46.9% of the fund, out of 91 in all.
The short version
Pacer Solactive Whitney Future of Warfare ETF (FOWF) is an index fund of developed-market companies with U.S. Defense Department contracts in priority areas such as artificial intelligence, space and cyber, led by RTX, Lockheed Martin and General Dynamics. Its index also penalizes companies with ties to China, Russia, North Korea or Iran. It charges 0.49% a year and held just $15.8 million as of July 31, 2026, the smallest among similar defense ETFs.
Price history
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FOWF — over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FOWF official prospectus, to Dec 31, 2025 | — | +25.35% | — | — | — | — |
| FOWF price data to Oct 27, 2026 | +3.9% | — | — | — | — | — |
- The deepest fall in its price history was 10.4% (Aug 14, 2026 to Oct 7, 2026), not yet recovered.
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jul 31, 2026, the fund held 91 securities; the ten largest made up 46.93% of assets.
| Holding | Weight | |
|---|---|---|
| RTX Corp | 8.65% | |
| Lockheed Martin Corp | 7.96% | |
| General Dynamics Corp | 7.89% | |
| Boeing Co | 6.68% | |
| Northrop Grumman Corp | 5.08% | |
| BAE Systems PLC | 3.65% | |
| L3Harris Technologies Inc | 2.00% | |
| Dell Technologies Inc | 1.96% | |
| Leidos Holdings Inc | 1.73% | |
| Snowflake Inc | 1.32% | |
| Datadog Inc | 1.25% | |
| Palo Alto Networks Inc | 1.14% | |
| Honeywell International Inc | 1.12% | |
| Palantir Technologies Inc | 1.11% | |
| Crowdstrike Holdings Inc | 1.05% |
By country
United States 77.15%United Kingdom 7.38%France 3.82%Canada 3.28%Germany 1.84%By asset type
Stocks 99.93%By sector
Sectors of the companies held, for the 71.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $2K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.85%, -3.09%, +4.49%.
How it works
FOWF is an index fund: it aims to match the total return of the Solactive Whitney Future of Warfare Index, before fees, rather than relying on a manager's picks. Solactive AG maintains the index rules, and J.H. Whitney Data Services selects companies under them. The starting pool is the Solactive GBS Developed Markets Large & Mid Cap USD Index: the largest companies making up about 85% of developed-market stock value.
To qualify, a company must work in one of the U.S. Department of Defense's Critical Technology Defense Sectors, such as quantum science, artificial intelligence (AI) and autonomy, and space technology. It must also hold an active Defense Department contract for the fiscal year. Each company is also scored on its ties to "high-risk" countries (China, Russia, North Korea and Iran) versus NATO members. The score looks at its shareholders, where it is incorporated, where its revenue, assets, customers and suppliers are, its board links, and its joint ventures and alliances. Only companies with a high enough combined score get in, and contract size also counts.
In practice, big defense contractors dominate. As of July 31, 2026, RTX (8.7%), Lockheed Martin (8.0%) and General Dynamics (7.9%) led 91 holdings, and the top 10 made up 46.9%. The fund owns stocks directly, with no derivatives. Turnover, the share of the portfolio traded in a year, was 39%.
What it really costs
- FOWF charges 0.49% a year, versus an average of 0.4% for the similar funds below (4th of 7, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FOWF | $50 | $157 | $274 | $616 |
In a retirement portfolio
It is a concentrated bet on defense contractors and defense-related technology, with a short record and a very small asset base.
FOWF could add targeted exposure to defense spending by the U.S. and allies, but its record is short. It launched December 17, 2024, so it missed the 2008 financial crisis, the 2020 COVID crash and the 2022 bear market. It returned 29.1% in 2025, its only full calendar year, and its weakest quarter lost 0.66%. Between June 9 and October 27, 2026, its deepest drop was 10.4%, from August 14 to October 7, and it had not recovered by October 27. Withdrawals in such a slump lock in losses.
Income is minimal: dividends over the past 12 months equaled a 0.17% yield as of October 27, 2026, paid quarterly. It costs 0.49% a year, or $50 in year one on $10,000 in the SEC's standard example (5% yearly returns). Past results don't predict the future, and a plan needs to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small stake in defense contractors such as RTX, Lockheed Martin and General Dynamics beside a broad core fund.
- Those who value an index that requires active Defense Department contracts and scores companies on ties to China, Russia, North Korea and Iran.
- Investors who want traditional contractors plus software firms such as Palantir, CrowdStrike and Snowflake in one 91-stock fund (as of July 31, 2026).
Look elsewhere if
- Retirees seeking income: dividends over the past year equaled a 0.17% yield as of October 27, 2026.
- Cost-focused investors: at 0.49%, it costs more than the iShares U.S. Aerospace & Defense ETF (ITA, 0.40%) and Themes Transatlantic Defense ETF (NATO, 0.35%).
- Anyone wanting a long record or a large fund: it launched in December 2024 and held $15.8 million as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FOWF this fund | — | 0.49% | $15.8M | — | — |
| SHLD Global X Defense Tech ETF | 41% | 0.5% | $7.24B | -6.9% | +36.9% |
| NATO Themes Transatlantic Defense ETF | 41% | 0.35% | $100.7M | -7.3% | — |
| PPA Invesco Aerospace & Defense ETF | 40% | 0.57% | $8.26B | -1.3% | +26.1% |
| MISL First Trust Indxx Aerospace & Defense ETF | 32% | 0.6% | $801.9M | -5.2% | +23.9% |
| ITA iShares U.S. Aerospace & Defense ETF | 31% | 0.4% | $14.44B | -0.3% | +24.8% |
| GCAD Gabelli Commercial Aerospace and Defense ETF | 27% | 0% | $43.7M | +6.2% | +29.7% |
Questions investors ask
What does FOWF invest in?
FOWF invests in developed-market companies with U.S. Department of Defense contracts in priority technologies. It held 91 stocks as of July 31, 2026. Big defense contractors dominate: RTX (8.7%), Lockheed Martin (8.0%), General Dynamics (7.9%), Boeing (6.7%) and Northrop Grumman (5.1%) led, and the top 10 made up 46.9% of assets. Software and cybersecurity firms such as Palantir and CrowdStrike held about 1% each. About 77% was in U.S. companies, with the UK next at 7.4%.
What's the difference between FOWF and SHLD?
The main difference is size, not cost. FOWF charges 0.49% a year and the Global X Defense Tech ETF (SHLD) charges 0.50%, and about 41% of their holdings overlap. But SHLD held about $7.2 billion as of August 31, 2026, versus $15.8 million for FOWF as of July 31, 2026. Smaller funds can trade with wider bid-ask spreads, the gap between what traders pay and what they receive. FOWF's index also scores companies on their ties to China, Russia, North Korea and Iran.
What is FOWF's expense ratio?
FOWF's expense ratio, the yearly fee taken from fund assets, is 0.49%, all of it the management fee, per the prospectus filed February 27, 2026. The SEC's standard example assumes $10,000 invested, 5% yearly returns and shares redeemed at the end of each period. On that basis, costs total $50 after one year, $157 after three, $274 after five and $616 after 10. That ranks fourth-lowest of seven comparable defense ETFs, including FOWF: cheaper than PPA (0.57%) and MISL (0.60%), pricier than ITA (0.40%) and NATO (0.35%).
Does FOWF pay dividends?
Yes, but very little. FOWF pays quarterly. Its trailing 12-month yield, meaning dividends paid over the past year divided by the share price, was 0.17% as of October 27, 2026, or about $0.06 per share. The index picks companies for their defense technology work, Defense Department contracts and geopolitical risk scores, not for dividends. Anyone needing steady income from a portfolio would have to rely on other holdings, and dividend-focused funds are worth comparing for that role.
How has FOWF performed?
FOWF returned 29.12% in 2025, its first full calendar year, according to its prospectus. Its strongest quarter gained 15.94% (ended June 30, 2025) and its weakest lost 0.66% (ended December 31, 2025). It later had a sharper drop. Between June 9 and October 27, 2026, its deepest decline was 10.4%, from August 14 to October 7, and it had not regained that peak by October 27. It returned 0.5% over the three months to October 27, 2026. Past returns don't predict future results.