ETFs

Investor interest in aerospace and defense is growing, fueled by expanding space exploration and evolving defense technologies. ETFs are increasingly targeting the space economy and defense tech, with thematic funds outperforming traditional aerospace ETFs amidst geopolitical tensions. Experts anticipate sustained investor enthusiasm due to technological advancements, government commitments, and the anticipated SpaceX IPO, while acknowledging supply chain and raw material constraints.

Horizon announced three new NYSE‑listed ETFs—International Equity (FRGN), Small/Mid‑Cap Core Equity (SMOX), and International Managed Risk (SFTX)—expanding its lineup to twelve products launched in 2025. All employ an active‑quantitative hybrid with multi‑factor screening (value, momentum, quality, volatility, sentiment) and use put‑spread options for risk‑adjusted returns. SFTX also shifts assets to Treasuries or cash during volatility spikes via its Risk Assist® framework. The offerings target advisors seeking goal‑based solutions for international exposure, small‑cap growth, or managed‑risk strategies, reflecting a broader shift toward active‑beta ETFs.