FOWF

FOWF tracks an index of large- and mid-cap companies involved in critical technology defense for the US and its allies. To qualify, companies must be linked to these sectors, pose a low geopolitical risk from a NATO perspective, and have active US Department of Defense (DOD) contracts. A division of the US DOD defines the sectors and may include quantum science, future-generation wireless technology, advanced materials, trusted AI and autonomy, integrated network systems of systems, microelectrics, space technology, advanced computing and software, human-machine interfaces, directed energy, hypersonics and integrated sensing and cyber. Defense spending data are contract revenues reported from the System for Award Management. A proprietary model measures the entanglement between companies that are adversarial to NATO countries. Holdings are weighted based on defense spending. Individual weights are capped at 7.5%. The index is rebalanced and reconstituted quarterly.