WEPN: NICHOLAS DEFENSE AND RARE EARTH INCOME ETF
What this ETF is trying to do
The Nicholas Defense and Rare Earth Income ETF (WEPN) is designed to provide investors with exposure to defense companies and rare earth materials. Based on its top holdings, it invests in a mix of cybersecurity firms, aerospace and defense companies, and ETFs that track metals and minerals.
What the numbers show
As of September 18, 2026, the share price for WEPN was $42.64.
It is important to note that there is currently no data supplied for year-to-date, one-year, or three-year price and total returns. Because there is not enough verified price history, an erosion score has not been provided.
Income and distribution explanation
This ETF focuses on providing regular cash payments to investors. It usually pays distributions monthly and has made 27 payments over the last 12 months.
The distribution yield is approximately 7.00%. This means that based on the current price, the cash distributions represent about 7% of the share price. However, a high distribution yield alone can be misleading. It tells you how much cash is being paid out, but it does not tell you the total return of the investment.
Top Holdings
The holdings for this ETF can change over time. As of October 4, 2026, the top holdings (which are a partial list) include:
• Palo Alto Networks Inc: 9.85%
• CrowdStrike Holdings Inc Class A: 9.32%
• Invesco DB Base Metals: 6.25%
• Palantir (PLTR): 5.00%
• VanEck Steel ETF: 4.18%
• CACI International Inc Class A: 3.85%
• Axon Enterprise Inc: 3.84%
• RTX Corp: 3.80%
• Abrdn Physical Platinum Shares ETF: 3.53%
• United States Copper Index: 3.22%
NAV Erosion Explanation
NAV erosion happens when the net asset value (the actual value of the fund's holdings) declines over time. Income investors care about principal stability because they want to earn income without losing the original money they invested.
For this ETF, the severe erosion-risk flag is false, meaning the specific screening rules for severe price deterioration were not triggered. However, as mentioned, a full erosion score is unavailable due to insufficient price history.
Pros
• Provides a way to invest in defense and rare earth materials in one fund.
• Offers frequent cash distributions (usually monthly).
• No severe erosion-risk flag is currently present.
Cons
• There is a lack of available historical return data (YTD, 1-year, and 3-year).
• It has an income rating grade of "D."
Beginner takeaway
WEPN is an ETF for people interested in defense and metals who also want monthly cash payments. While the 7% distribution yield looks attractive, remember that yield is not the same as total return. Because there is very little historical performance data available, it is difficult to see how the share price has behaved over the long term.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PALO ALTO NETWORKS INC | PANW | 9.85% |
| 2 | CROWDSTRIKE HOLDINGS INC CLASS A | CRWD | 9.32% |
| 3 | n/a | SPCX | 7.20% |
| 4 | INVESCO DB BASE METALS | DBB | 6.25% |
| 5 | n/a | PLTR | 5.00% |
| 6 | VANECK STEEL ETF | SLX | 4.18% |
| 7 | CACI INTERNATIONAL INC CLASS A | CACI | 3.85% |
| 8 | AXON ENTERPRISE INC | AXON | 3.84% |
| 9 | RTX CORP | RTX | 3.80% |
| 10 | OTHER ASSETS AND LIABILITIES | n/a | 3.64% |