HANetf will launch Europe's first pureplay drones UCITS ETF in 2026, providing investors with exposure to companies that drive the expansion of unmanned aerial systems (UAS).
The exchange-traded fund (ETF) will target companies across three growth pillars: military, civil government and commercial adoption. HANetf noted that unmanned systems are now central to modern military doctrine, civil government and public safety (border surveillance, disaster response, infrastructure monitoring, emergency services), and commercial and industrial applications.
Military UAS spending is projected to reach $216.5bn over the next decade. The US has launched a $1bn ‘Drone Dominance’ initiative, Germany aims to field more than 8,000 unmanned systems by 2029 and the UK has committed an additional £2bn to its drone capabilities.
Meanwhile, the civil UAS market is forecast to grow from $10.1bn in 2024 to $20.6bn by 2033. This represents a compound annual growth rate of 6.8%.
The commercial UAS market is expected to reach $9.5bn by 2028, as applications are anticipated to grow faster than military demand over the coming decade. Commercial drone applications span construction, industrial inspection, agriculture and logistics.
Tom Bailey, head of research at HANetf, said: “Over the past few years, drones have come to dominate the battlefield in Ukraine and global defence spending is changing to reflect this. But defence is only one of the three growth pillars. Governments are increasingly deploying drones for disaster relief, border security and infrastructure monitoring.
“At the same time, as hardware costs fall and autonomy improves, commercial applications are expanding rapidly. Commercial drone use is expected to grow faster than military demand over the coming decade, with adoption accelerating across construction, industrial inspection, agriculture and logistics, where drones offer detailed surveillance and lower-cost transportation solutions.”
HANetf will announce index details and listing venues in due course. The index underpinning the ETF will use a pureplay methodology to avoid dilution from diversified aerospace companies.