You Can Do Better Than Rocket Labs With This 1 ETF

2 hours ago 2

Patrick Sanders, The Motley Fool

Sun, January 25, 2026 astatine 3:05 PM CST 5 min read

One of the top-performing names successful the banal marketplace successful the past 2 years has been Rocket Lab (NASDAQ: RKLB). The company, which provides motorboat services, rockets, abstraction vehicles, and outer equipment, is an emerging unit successful U.S. and planetary abstraction programs. Rocket Lab banal jumped 360% successful 2024 and 174% successful 2025. A $10,000 concern 3 abbreviated years agone would person turned into $186,880 contiguous -- that's life-changing wealth for galore people.

Rocket Lab is simply a large sanction for anyone who is looking to put successful a abstraction stock. But arsenic overmuch arsenic I similar Rocket Lab stock, I deliberation a amended bargain contiguous is the Defiance Drone and Modern Warfare ETF (NYSEMKT: JEDI). This money has Rocket Lab arsenic a apical holding, and it besides provides vulnerability to respective different absorbing companies successful related industries.

A rocket blasting off.

Image source: Getty Images.

The Defiance Drone and Modern Warfare ETF, is operated by Defiance ETFs, which focuses connected thematic exchange-traded funds. ETFs travel successful each sorts of flavors and colors -- immoderate are scale funds that way the S&P 500 or 1 of its sectors, and others are thematic ETFs that way an manufacture oregon concept. The JEDI ETF falls successful the second category.

The JEDI ETF includes companies that make subject drones, AI-driven warfare and defence technology, abstraction products (including abstraction weaponry), subject robotics, and subject cybersecurity. The stocks successful the ETF person astatine slightest 50% of their gross from those sources.

Of note, nary banal tin person much than a 10% weighting of the full index. That prevents immoderate azygous sanction from getting excessively overmuch vulnerability successful the ETF. As of this writing, the JEDI ETF held 26 stocks, with Rocket Lab being the apical holding. The apical 10 stocks successful the money relationship for 64% of the ETF's weight.

Rank/Company

ETF Weight

One-Year Performance

1. Rocket Lab

8.66%

180.8%

2. Kratos Defense & Security Solutions

7.29%

242.4%

3. L3harris Technologies

6.83%

56.1%

4. RTX

6.73%

57.1%

5. Saab AB

6.45%

282%

6. Thales SA

6.06%

94.7%

7. Palantir Technologies

5.79%

126.3%

8. Elbit Systems

5.78%

131.8%

9. AeroVironment

5.53%

80.1%

10. Leidos

5.39%

20.1%

Data source: Defiance ETFs


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