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The fund normally invests in securities comprising the index. The index is designed to track the performance of South Korean companies that have demonstrated high relevance to defense (“Korea Defense Companies”). Under normal circumstances, the fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities comprising the index. The fund is non-diversified.
Is KDEF's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
The PLUS Korea Defense Industry Index ETF is a unique international aerospace and defense fund. The ETF seems relatively cheap compared to other industrial ETFs, given the solid fundamentals of the portfolio's underlying holdings. However, the fund's hyper-specific niche does cause it to face some idiosyncratic risks.
Investors are focusing on AI developments in North Asia. China is coming out of more than three years of deflation measured by the producer price index.
Key Takeaways: Defense ETFs now hold $42 billion in assets with $9 billion in inflows this year amid rising geopolitical tensions. Eight out of nine new defense ETF launches since 2025 have been global or international offerings.
VettaFi explores how defense ETFs have expanded beyond traditional contractors into international, space, and drone investment opportunities.
PLUS Korea Defense Industry Index ETF (KDEF) has outperformed peers, tripling in price since inception and delivering 1.5-1.9x higher returns than unleveraged Korean ETFs. KDEF targets South Korean defense stocks poised to benefit from rising global military spending, leveraging advanced manufacturing and rapid order fulfillment capabilities. Despite strong growth prospects, KDEF trades at a significant valuation premium (24x earnings, 10.1x cash flow) versus diversified peer EWY, with higher volatility and liquidity risks.