The prospect of a surge in demand is causing more and more investors to look at drone specialists. In the last few months, the share prices of a number of traditional arms and technology companies with drone exposure have been rising sharply. Oceaneering International, for instance, a US supplier of autonomous underwater vehicles and robots for oil/gas and defence applications, has seen its market value climb by three quarters within the space of a year. General Dynamics, also a world-leading arms and aerospace group, has posted a substantial 27% increase over a 12-month period. Business is going well for General Dynamics: the US conglomerate reported a rise in sales of a good tenth for the first quarter and subsequently raised its full-year profit forecast. In this environment TechnipFMC, which specialises in deep-sea and subsea structures for the energy sector, including unmanned underwater vehicles (UUVs) and drones for inspection, also benefited from increased investor interest. The last two of these companies occupy the top 3 positions in the Leonteq Drone Index.<\/p>\n\n
The third heavyweight in the pick is Teledyne, a US tech company which is known primarily for its high-resolution sensors, camera systems and defence electronics. Teledyne recently posted much higher sales on the back of strong demand for surveillance and defence technology and, like General Dynamics, raised its profit forecast for the current financial year. The company now expects adjusted earnings per share of between USD 23.85 and USD 24.15 for 2026, with the midpoint of the new forecast range 18 cents above analysts\u2019 expectations. Teledynes subsidiary FLIR, for example, supplies the compact \u2018Black Hornet\u2019 reconnaissance drones, which are used by many armed forces.<\/p>\n\n
Alongside these three global players, which between them account for almost one third of the index, other specialist firms, such as the fore-mentioned Oceaneering International and also Joby Aviation, also contribute to the index's performance. The latter is broadening its focus on the drone market with a further business model. Only founded in 2009, California-based Joby is associated less with traditional drones than with the related market of Advanced Air Mobility. The company develops electric aircraft which, like drones, can take off and land vertically and are intended to operate as an air taxi service with four passenger seats. Joby is thus addressing the civil sector of unmanned and highly automated aviation, which encompasses urban mobility, new airport shuttle services and, in the long term, autonomous fleets. In March Joby tested a model nearing series readiness and is continuing to work towards its FAA certification. Flight operations are set to begin in Dubai, where two of the four landing sites are already under construction, before the end of this year. The company is also planning to manufacture four aircraft a month in production facilities in the USA from as early as next year.<\/p>\n\n\n
To allow investors to share specifically in the boom in the drone industry, Leonteq recently launched a new tracker certificate on the Leonteq Drones Index. The certificate has an indefinite term, is quoted in Swiss francs and is traded on the SIX Swiss Exchange on each trading day. The product fully tracks the performance of the underlying, which bundles world-leading companies with a strong focus on drones, less an annual fee of 0.60%. The tracker certificate thus enables investors to capitalise directly from the overall potential of the drone market. There are 21 stocks in the selection at present. The index uses a weighting algorithm which is based on the free-float market capitalisation and sets an upper limit of 10% on the weighting and a lower limit of at least 0.5%. The tracker therefore offers investors a transparent and low-cost way of sharing in the structural growth of the market for drones.<\/p>\n\n\n
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