
This investment product typically allocates its capital to the underlying assets that constitute its benchmark index. That index is specifically engineered to reflect the financial results of South Korean enterprises with a strong connection to the defense sector, officially referred to as "Korea Defense Companies." During standard operating periods, the fund is obligated to invest a minimum of 80% of its total net assets—encompassing any borrowed funds utilized for investment—in the constituent securities of this index. It functions as a non-diversified portfolio.
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.
PLUS Korea Defense Industry Index ETF (NYSEARCA:KDEF - Get Free Report) was the recipient of a large growth in short interest in September. As of September 30th, there was short interest totaling 24,661 shares, a growth of 348.2% from the September 15th total of 5,502 shares. Currently, 1.0% of the company's shares are sold short.

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.