At a glance
WAR charges 0.6% a year, above the 0.23% average of the 6 funds most like it (the most expensive of 7). It has $41.3M in assets, the 7th largest of that group; it paid 10.15% of its price in distributions over the past 12 months, annual. Over the past year it returned +24.6% with distributions reinvested (S&P 500: +11.5%), 2nd of those 7 funds. Its ten largest positions make up 61.0% of the fund, out of 28 in all.
The short version
U.S. Global Technology and Aerospace & Defense ETF (WAR) is an actively managed fund from U.S. Global Investors. It picked 28 stocks in computer chips and defense as of June 30, 2026, from Astera Labs and Micron to Axon and Sweden's Mildef. It puts heavy weight on both industries and trades often, with 394% portfolio turnover. At 0.60% a year, it costs far more than the 0.23% average of similar tech funds.
Price history
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WAR +24.6% 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 | |
|---|---|---|---|---|---|---|
| WAR official prospectus, to Dec 31, 2025 | — | +29.73% | — | — | — | — |
| WAR price data to Oct 27, 2026 | +26.0% | +24.6% | — | — | — | +35.1% |
- Over the year to Oct 27, 2026, WAR returned +24.6%, 2nd of 7 among similar funds.
- The deepest fall in its price history was 21.7% (Jun 30, 2026 to Jul 29, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +26.0% | — |
| 2025 | — | +31.86% |
| 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 Jun 30, 2026, the fund held 28 securities; the ten largest made up 60.96% of assets. It also reported 8.72% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Astera Labs Inc | 9.45% | |
| Axon Enterprise Inc | 8.71% | |
| Micron Technology Inc | 8.54% | |
| Mildef Group AB | 7.17% | |
| DroneShield Ltd | 5.01% | |
| Intuitive Machines Inc | 4.95% | |
| Teradyne Inc | 4.93% | |
| Electro Optic Systems Holdings | 4.09% | |
| Rolls-Royce Holdings PLC | 4.06% | |
| Lattice Semiconductor Corp | 4.05% | |
| BE Semiconductor Industries NV | 3.82% | |
| Karman Holdings Inc | 3.69% | |
| NVIDIA Corp | 3.64% | |
| Theon International PLC | 3.50% | |
| Crowdstrike Holdings Inc | 3.33% |
By country
United States 70.34%Australia 9.1%Sweden 7.17%Netherlands 5.26%United Kingdom 4.06%By asset type
Stocks 99.43%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $11.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +24.62%, +19.10%, -2.46%.
How it works
WAR does not track an index. Its adviser, U.S. Global Investors, picks stocks it believes may benefit from products, services or technology tied to national defense. That includes aerospace, physical security and cybersecurity, as countries prepare for or respond to conflicts. Under normal conditions, at least 80% of net assets go into technology companies and aerospace and defense companies. A company qualifies if at least half its income, sales or assets come from those activities. Most of the tech exposure is expected to come from semiconductor (computer chip) makers. The fund keeps more than 25% of assets in each of the chip and defense industries.
Picks rest on the adviser's own research plus quantitative (data-driven) and fundamental analysis. The prospectus gives no fixed weighting rule or rebalancing schedule. The fund can own companies of any size, in the U.S. or abroad, including emerging markets and American Depositary Receipts (U.S.-listed certificates for foreign shares). As of June 30, 2026, about 70% was in U.S. stocks. Most of the rest was in Australia, Sweden, the Netherlands, the U.K. and Cyprus.
The fund is non-diversified, so a few stocks can carry a lot of weight. The top 10 made up about 61% of assets. Turnover of 394% means it replaced its holdings several times over in a year. The 80% policy can change with 60 days' notice.
What it really costs
- WAR charges 0.6% a year, versus an average of 0.23% for the similar funds below (7th of 7, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| WAR | $61 | $192 | $335 | $750 |
In a retirement portfolio
WAR is a concentrated, actively traded bet on chip and defense stocks that has swung about twice as much as the market, so it fits a small slice of a portfolio rather than the center of it.
WAR adds focused exposure to chips and defense, but with a lot of volatility. Over the year to Oct 27, 2026, its annualized volatility was 35.2%. Its beta of 2.08 suggests it moved about twice as much as the market. The fund launched Dec 30, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its deepest drop, 21.7%, ran from June 30 to July 29, 2026, and it had not fully recovered as of Oct 27, 2026. Someone who has to sell in a bad stretch could end up selling near a low. The trailing 12-month yield was 10.15%, paid annually. That payout may not repeat for a fund whose goal is growth. Costs are 0.60% a year, or $61 in the first year on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small, deliberate bet on both semiconductor and defense stocks in one actively managed fund.
- People comfortable owning 28 stocks, with the top 10 holding about 61% of assets as of June 30, 2026.
- Those who want foreign defense names like Mildef, DroneShield and Electro Optic Systems alongside U.S. holdings such as Axon and Micron.
Look elsewhere if
- Cost-focused investors: its 0.60% expense ratio was the highest of seven comparable funds, against a 0.23% average and 0.08% for XLK.
- Anyone who needs steady values: volatility was 35.2%, and the fund fell 21.7% between June 30 and July 29, 2026.
- Investors who want a long track record: the fund launched Dec 30, 2024, and has not yet gone through a bear market.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| WAR this fund | — | 0.6% | $41.3M | +24.6% | — |
| SOXX iShares Semiconductor ETF | 20% | 0.35% | $47.82B | +48.5% | +44.1% |
| XLK Technology Select Sector SPDR Fund | 16% | 0.08% | $123.91B | +20.1% | +4.0% |
| IGM iShares Expanded Tech Sector ETF | 15% | 0.41% | $10.71B | +21.3% | +38.6% |
| VGT Vanguard Information Technology ETF | 14% | 0.09% | $170.66B | +19.7% | +33.3% |
| FTEC Fidelity MSCI Information Technology Index … | 13% | 0.084% | $19.85B | +15.4% | +30.0% |
| IYW iShares U.S. Technology ETF | 13% | 0.39% | $23.58B | +13.9% | +30.4% |
Questions investors ask
Is WAR ETF good for retirement?
It works more like a small, higher-risk side holding than a core retirement fund. WAR holds 28 chip and defense stocks. It had a beta of 2.08 and volatility of 35.2% over the year to Oct 27, 2026. It has only existed since Dec 30, 2024, so it has never been through a bear market. Its 0.60% expense ratio is also well above the 0.23% average of similar funds.
What stocks are in the WAR ETF?
WAR held 28 stocks as of June 30, 2026, mostly semiconductor and defense companies. The largest were Astera Labs (9.4%), Axon Enterprise (8.7%), Micron Technology (8.5%), Mildef Group (7.2%) and DroneShield (5.0%). Other holdings included Rolls-Royce, NVIDIA and CrowdStrike. About 70% of assets were in U.S. companies. Most of the rest were in Australia, Sweden, the Netherlands, the U.K. and Cyprus.
Why is WAR's dividend yield so high?
WAR's trailing 12-month yield was 10.15% as of Oct 27, 2026, from annual distributions of about $2.95 per share. That is unusual, because the fund's goal is capital growth, not income. Funds that trade heavily (WAR's turnover was 394%) can pass realized trading gains on to shareholders. Those payouts can vary a lot from year to year. In a taxable account, distributions may be taxed even if they are reinvested.
WAR vs SOXX: what's the difference?
SOXX, the iShares Semiconductor ETF, shares the most holdings with WAR, but the overlap is only about 20%. SOXX focuses on chip stocks and costs 0.35%. WAR adds defense, space and cybersecurity companies, is actively managed, and charges 0.60%. SOXX returned 54.9% over the year to Oct 30, 2026. WAR returned 24.6% over the year to Oct 27, 2026. SOXX also had about $47.8 billion in net assets, against WAR's $41 million.
What is the expense ratio of WAR ETF?
WAR's expense ratio is 0.60%, all of it management fee, with no fee waiver, according to its prospectus filed April 24, 2026. In the SEC's standard example ($10,000 invested, 5% annual return), total costs come to $61 after one year, $192 after three, $335 after five and $750 after ten. That made it the most expensive of seven comparable funds, whose average was 0.23%.