ETFs Holding Guns, Opioids & Prisons

June 22, 2018

Which ETFs Hold Gun Stocks?

Most companies involved in the manufacture and retail of civilian firearms are either privately owned, or their gun-related activity represents a fraction of their revenues. The three publicly traded companies generating the most revenues from guns are:

  • Sturm, Ruger & Co (RGR), 95% of revenues
  • American Outdoor Brands Corp. (AOBC), 68%
  • Vista Outdoor, Inc. (VSTO), 49%

Eighty-two ETFs hold at least one of these three gun stocks in their portfolios. That's almost double the number of funds we found holding gun stocks the last time we checked (read: "ETFs Pressured To Drop Gun Stocks").

 

10 ETFs With Highest Weighting In Gun Stocks
Ticker Fund Allocation Weight Combined Market Value ($M) Which Stock(s)?
CALF Pacer U.S. Small Cap Cash Cows 100 ETF 2.62% 0.27 VSTO, RGR
ITA iShares U.S. Aerospace & Defense ETF 1.72% 102.57 AOBC, RGR
PSCD Invesco S&P SmallCap Consumer Discretionary ETF 1.65% 1.38 VSTO, RGR
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares 1.22% 0.95 AOBC, RGR
SPUN VanEck Vectors Spin-Off ETF 1.02% 0.05 VSTO
SQLV Legg Mason Small-Cap Quality Value ETF 1.01% 0.06 VSTO, RGR
CSB VictoryShares U.S. Small Cap High Div Volatility Wtd ETF 0.80% 0.35 RGR
XSHQ Invesco S&P SmallCap Quality ETF 0.64% 0.02 RGR
SYLD Cambria Shareholder Yield ETF 0.56% 0.76 RGR
CSML IQ Chaikin U.S. Small Cap ETF 0.43% 2.23 VSTO

 

The vast majority of ETFs holding gun stocks are either small-cap funds that hold weapons manufacturers because of their small size; or single-factor funds, such as value or dividend funds, that include weapons makers due to their strong balance sheets. The ETFs with the largest percentage holding is the Pacer U.S. Small Cap Cash Cows 100 ETF (CALF), which holds just 2.62%.

Small-Cap ETFs Dominate

Again, percentages alone can be misleading when trying to understand just how much money is changing hands. Below are the 10 ETFs with the highest amount of assets in gun stocks:

 

10 ETFs With Highest Market Value In Gun Stocks
Ticker Fund Allocation Weight Combined Market Value ($M) Which Stock(s)?
IJR iShares Core S&P Small Cap ETF 0.24% 104.83 VSTO, RGR
ITA iShares U.S. Aerospace & Defense ETF 1.72% 102.57 AOBC, RGR
IWM iShares Russell 2000 ETF 0.11% 54.37 RGR, AOBC, VSTO
IJS iShares S&P Small-Cap 600 Value ETF 0.36% 21.25 VSTO, RGR
VB Vanguard Small-Cap ETF 0.07% 16.72 RGR, AOBC, VSTO
VBR Vanguard Small-Cap Value ETF 0.12% 15.64 RGR, AOBC, VSTO
IWO iShares Russell 2000 Growth ETF 0.14% 14.82 AOBC, RGR
VTI Vanguard Total Stock Market ETF 0.01% 9.25 RGR, AOBC, VSTO
FNDA Schwab Fundamental US Small Co. Index ETF 0.28% 9.25 RGR, AOBC, VSTO
IWN iShares Russell 2000 Value ETF 0.09% 9.21 VSTO

 

Almost all the ETFs with the most money in gun stocks are billion-dollar small-cap and broad-market funds, such as the iShares Core S&P Small Cap ETF (IJR), which holds $105 million in Vista Outdoors and Sturm Ruger. The one thematic fund that makes it onto this list is the iShares U.S. Aerospace & Defense ETF (ITA), which also holds $389 million in detention-related stocks.

Find your next ETF

Reset All