MIAMI, Aug. 11, 2026 (GLOBE NEWSWIRE) — Defiance ETFs today announced that the Defiance Drone & Modern Warfare ETF (NYSE: JEDI) has obtained exposure to Shield AI, a privately held defense technology company, making JEDI the first U.S.-listed ETF to offer investors exposure to the company.

The position follows the July 27, 2026 prospectus supplement, effective August 6, 2026, which added a secondary investment objective permitting the Fund to seek exposure to companies that the Adviser believes would have qualified for inclusion in the BITA Drone & Modern Warfare Select Index except that their securities are not publicly traded.

Why Shield AI

Founded in 2015 and headquartered in San Diego, Shield AI builds autonomy software and aircraft for defense applications, with offices and facilities across the United States, Europe, the Middle East, and Asia-Pacific.

  • Hivemind autonomy. Shield AI’s AI pilot software enables aircraft to operate without GPS or communications links, in environments where both are jammed or denied. The company has described Hivemind as continuously deployed in real-world operational environments since 2018.
  • V-BAT aircraft. The MQ-35 V-BAT is a single-engine ducted-fan vertical takeoff and landing unmanned aircraft system that launches and recovers from a hover, requiring no runway or launch infrastructure. In July 2024, the U.S. Coast Guard awarded Shield AI a $198 million contract for maritime unmanned aircraft system services, among the largest contractor-owned, contractor-operated deployments for maritime intelligence, surveillance, and reconnaissance. V-BAT has also been procured by allied militaries including the Netherlands Ministry of Defence.
  • X-BAT development. Shield AI is developing X-BAT, an autonomous vertical takeoff and landing combat aircraft. On July 20, 2026, Shield AI and GE Aerospace announced completion of integration, actuation, and engine light-off testing of an Axisymmetric Vectoring Exhaust Nozzle for the aircraft’s F110-GE-129E engine, which the companies described as a milestone on the path to vertical flight.
  • Institutional backing. In March 2026, Shield AI announced a $2 billion raise at a $12.7 billion post-money valuation, comprising $1.5 billion in Series G equity led by Advent International and co-led by the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative, plus $500 million in preferred equity from funds managed by Blackstone.
  • Air Force CCA production award. In June 2026, the U.S. Air Force awarded Shield AI a production contract to implement Hivemind as mission autonomy software for the Collaborative Combat Aircraft program, under an architecture that treats autonomy as a capability separate from the airframe. Hivemind is currently flying aboard Anduril’s YFQ-44A as part of the program’s ongoing development efforts. Shield AI is one of three companies continuing to compete to provide CCA autonomy, alongside Anduril and RTX subsidiary Collins Aerospace.

Why It Matters

“Shield AI is exactly the kind of company JEDI was built to capture, and until now the only way to access it was through a private placement with a lock-up and a minimum most investors will never meet,” said Sylvia Jablonski, Chief Investment Officer of Defiance ETFs. “This is the first time that exposure has existed inside an ETF, with a single ticker, daily holdings transparency, and intraday liquidity at the share level. Autonomy is the layer that determines whether the rest of the modern warfare stack actually works, and Shield AI has been operating it in the field since 2018. The fact that the company hasn’t listed shouldn’t be the reason our shareholders miss it.”

  • Access. Private market exposure has traditionally been limited to institutional and accredited investors through vehicles with lock-ups and performance fees. The ETF structure makes this exposure available to all investors through a single ticker.
  • Discipline. Private company exposure, together with all other illiquid investments, is limited to no more than 15% of the Fund’s net assets, consistent with SEC liquidity risk management rules for open-end funds. The Adviser does not currently expect aggregate private holdings to exceed approximately 5% of net assets at the time of purchase.
  • Transparency. The SPV interest appears in the Fund’s daily holdings file. Investors can see the position and its fair value, rather than waiting for a quarterly report.

How the Exposure Is Held

The Fund obtains its Shield AI exposure indirectly. The Fund holds an interest in a single-asset special purpose vehicle (SPV) sponsored by an unaffiliated third party, and that SPV holds the Shield AI securities. The Fund does not hold Shield AI shares directly, and shareholders do not hold Shield AI shares.

The Fund participates as a passive investor. The SPV interest is treated as an illiquid investment under Rule 22e-4 under the Investment Company Act of 1940, is carried at fair value in accordance with procedures adopted pursuant to Rule 2a-5, and appears in the Fund’s daily holdings file alongside every other position.

What Is Not Changing

JEDI’s primary investment objective remains to seek to track the total return performance, before fees and expenses, of the BITA Drone & Modern Warfare Select Index, and under normal circumstances the Fund invests at least 80% of its net assets in drone and modern warfare companies. The Fund’s management fee remains 0.69%. The Fund continues to trade on NYSE under the ticker JEDI, publishes full holdings daily, and shares remain fully tradable intraday.

As previously disclosed, the Fund’s fee table has been restated to reflect estimated Acquired Fund Fees and Expenses of approximately 0.30%, representing a one-time upfront access fee associated with an investment through an SPV, resulting in estimated Total Annual Fund Operating Expenses of 0.99%. Because the access fee is a one-time, non-recurring charge expected to be incurred only in the year of investment, ongoing expenses in later years are expected to be lower.

Additional information regarding the revised investment objective, principal investment strategies, and associated risks is available in the Fund’s prospectus, as supplemented, at www.defianceetfs.com.

About Defiance ETFs

Founded in 2018, Defiance is a leading ETF issuer specializing in thematic, income, and leveraged ETFs. Our first-mover leveraged single-stock ETFs allow investors to take amplified positions in high-growth companies, providing precise leverage exposure without the need to open a margin account.

Media Contact: Brenda Hentschel | bhentschel@gregoryagency.com | 201.705.3758

Important Disclosures

Shield AI is not affiliated with, and does not sponsor, endorse, or promote, Defiance ETFs or the Fund. References to Shield AI are not a recommendation to buy or sell any security. Fund holdings are subject to change and should not be considered investment advice.

Investing involves risk, including possible loss of principal. The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the Fund and may be obtained at www.defianceetfs.com or by calling 833.333.9383. Read them carefully before investing.

The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and / or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.

Defiance ETFs LLC is the Fund’s investment adviser. The Fund’s sub-adviser is Penserra Capital Management LLC.

Past performance is no guarantee of future results. High ratings do not assure favorable performance.

Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.

Private Company / Privately Offered Securities Risk: Securities of private companies are not traded on an exchange and are typically issued without registration under the Securities Act of 1933. Such investments are subject to significant risks, including illiquidity risk, valuation risk (fair value determinations may differ materially from the price at which the security could actually be sold), limited disclosure and lack of certain regulatory protections available to investors in publicly traded securities, exit strategy risk, and the risk of total loss. Private companies may have limited operating histories, unproven business models, and limited access to capital.

Investment Selection Risk (Private Sleeve): The Fund’s investments in privately issued securities are selected by the Adviser in its discretion and are not selected by reference to the Index. Those selection decisions may underperform the Index, other relevant benchmarks, or alternative investments the Adviser could have selected.

Sponsor Dependence Risk: The Fund depends on the SPV sponsor for administration of the SPV, transmission of information rights, the conduct of the SPV’s relationship with the underlying issuer, and implementation of any liquidity event. The SPV sponsor may have interests that diverge from those of the Fund. The bankruptcy, insolvency, or operational failure of an SPV sponsor could materially and adversely affect the Fund’s ability to realize value from its investment.

Liquidity Risk: The Fund’s SPV interest is not traded on any public market, is not redeemable on demand at the option of the Fund, and may be transferred only with the consent of the SPV sponsor. The Fund’s ability to monetize the investment generally depends on the occurrence of a qualifying liquidity event at the underlying issuer, such as an initial public offering, sale, or merger. There is no assurance that any such liquidity event will occur within any particular time frame, on any particular terms, or at all.

Illiquid Investments Risk: The Fund may invest up to 15% of its net assets in illiquid investments. Illiquid investments may be difficult or impossible to sell at the time or price desired, may be sold at a substantial discount to carrying value, and may adversely affect the Fund’s ability to meet redemption requests. Significant redemptions could cause the Fund’s illiquid investments to represent a larger percentage of Fund assets.

Valuation Risk: Private company securities are fair valued in accordance with procedures adopted pursuant to Rule 2a-5 under the Investment Company Act of 1940. Fair valuations involve subjective judgments, and the value assigned may differ from the value that would have been used had a ready market for the security existed. The value at which an investment is ultimately realized may differ, potentially materially, from the most recent fair value determination.

Premium/Discount Risk: The Fund’s SPV interest does not have an observable market price during the trading day and is reflected in the Fund’s daily net asset value at fair value. Market participants may have limited ability to hedge exposure to this portion of the portfolio. As a result, Fund shares may trade at a premium or discount to net asset value to a greater extent, and with greater volatility, than has historically been the case for the Fund.

Tracking Error / Index Divergence Risk: Because the Fund holds an investment that is not a component of the Index, the Fund’s performance is expected to diverge from the performance of the Index. The magnitude of this divergence may be material.

Concentration Risk: A portfolio concentrated in a single industry or country may be subject to a higher degree of risk than a more diversified portfolio.

Foreign Securities Risk: Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets.

Small/Mid-Cap Risk: Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.

Aerospace and Defense Companies Risk: Aerospace and defense companies rely heavily on government demand and contracts, making them sensitive to regulation, budget changes, and spending policies that can significantly affect industry performance.

Drone Companies Risk: Drone companies face risks from changing business cycles, rapid technological change, and government regulation, and may have limited product lines or financial resources. Securities of smaller drone companies tend to be more volatile than those of companies that do not rely heavily on technology.

Non-Diversification Risk: The Fund may invest a larger portion of its assets in fewer issuers than a diversified fund, increasing exposure to the risks of individual companies.

New Fund Risk: The Fund is a recently organized investment company with limited operating history, so prospective investors have a limited track record on which to base their investment decisions.

The ‘BITA Drone & Modern Warfare Select Index’ is the exclusive property of BITA GmbH. BITA® is a trademark of BITA GmbH and has been licensed for use for certain purposes by Defiance ETFs LLC. Products based on the BITA Drone & Modern Warfare Select Index are not sponsored, endorsed, sold or promoted by BITA GmbH, and BITA GmbH makes no representation regarding the advisability of trading in such product(s). It is not possible to invest directly in an index.

Diversification does not ensure a profit nor protect against loss in a declining market.

Commissions may be charged on trades.

Distributed by Foreside Fund Services, LLC.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b29fa70f-cd8a-4462-ac71-573a3e58e6a2


Media gallery

About The Author
Defiance ETFs