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GCAD - ETF AI Analysis

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GCAD

Gabelli Commercial Aerospace & Defense ETF (GCAD)

Rating:67Neutral
Price Target:
GCAD’s rating suggests it is a solid but not top-tier aerospace and defense ETF, supported by strong core holdings like Honeywell, Northrop Grumman, and Textron, which benefit from robust financial performance, healthy backlogs, and positive growth outlooks. These strengths are partly offset by weaker names such as Boeing and Ducommun, where financial challenges, profitability issues, and operational setbacks weigh on the fund. The main risk factor is the ETF’s concentration in the cyclical and government-dependent aerospace and defense sector, which can be sensitive to program delays, budget changes, and valuation pressures.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the year to date and in recent months, indicating solid recent momentum.
Leading Aerospace & Defense Holdings
Several of the largest positions, including well-known aerospace and defense companies, have delivered strong year-to-date performance that supports the fund’s returns.
No Stated Expense Ratio
The fund currently shows a zero expense ratio, which means investors are not seeing returns reduced by ongoing management fees based on the provided data.
Negative Factors
Heavy Sector Concentration
With most assets in industrials tied to commercial aerospace and defense, the fund is highly exposed to downturns in this single industry.
Limited Geographic Diversification
The ETF is overwhelmingly invested in U.S. companies, offering very little exposure to other regions.
Small Asset Base
The relatively low assets under management mean the fund is still small, which can sometimes lead to higher trading costs or a greater risk of closure.

GCAD vs. SPDR S&P 500 ETF (SPY)

GCAD Summary

GCAD is the Gabelli Commercial Aerospace & Defense ETF, focused on companies in the aerospace and defense industry rather than tracking a broad market index. It mainly holds U.S. industrial stocks tied to aircraft, defense systems, and related technology. Well-known holdings include Boeing and Lockheed Martin. Someone might invest in GCAD to seek growth from rising air travel, defense spending, and advances in aerospace technology, while still getting diversification across many companies in this niche. A key risk is that it is heavily concentrated in the aerospace and defense sector, so it can rise or fall sharply with that industry.
How much will it cost me?The Gabelli Commercial Aerospace & Defense ETF (GCAD) has an expense ratio of 0.0%, meaning you won’t pay anything in fees annually for every $1,000 invested. This is significantly lower than average because it has no management fees, which is uncommon for ETFs, whether actively or passively managed.
What would affect this ETF?The Gabelli Commercial Aerospace & Defense ETF (GCAD) could benefit from increased global defense spending, advancements in aerospace technology, and growing interest in space exploration, which align with its focus on leading companies like Boeing and Lockheed Martin. However, potential risks include budget cuts in defense spending, regulatory changes, or economic slowdowns that could impact the Industrials sector and its top holdings. The ETF’s strong exposure to U.S.-based companies makes it sensitive to domestic policy and economic conditions.

GCAD Top 10 Holdings

GCAD is a pure play on U.S. aerospace and defense, with the fund’s fate largely tied to a tight cluster of industrial heavyweights. Boeing has been a clear drag, with its ongoing troubles acting like headwinds for the portfolio. In contrast, defense giants Lockheed Martin and Northrop Grumman have been rising, helping to pull performance forward alongside steady contributors like Moog and L3Harris. Honeywell adds a more diversified industrial tilt, but overall this ETF is firmly hitched to the commercial aerospace and defense spending cycle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Boeing6.14%$1.72M$164.92B50.66%
54
Neutral
Albany International5.94%$1.66M$1.50B-11.01%
56
Neutral
Lockheed Martin5.76%$1.61M$144.42B41.58%
70
Outperform
Northrop Grumman5.57%$1.56M$98.00B40.35%
76
Outperform
Moog5.54%$1.55M$9.45B97.52%
73
Outperform
Hexcel4.76%$1.33M$6.07B68.33%
73
Outperform
Textron4.67%$1.31M$15.26B43.90%
75
Outperform
Honeywell International4.11%$1.15M$142.29B22.41%
77
Outperform
Ducommun3.54%$989.66K$2.01B151.21%
58
Neutral
L3Harris Technologies3.44%$962.10K$66.12B76.34%
70
Neutral

GCAD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
52.61
Negative
100DMA
49.65
Positive
200DMA
46.23
Positive
Market Momentum
MACD
-0.72
Negative
RSI
50.10
Neutral
STOCH
85.33
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GCAD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 51.23, equal to the 50-day MA of 52.61, and equal to the 200-day MA of 46.23, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCAD.

GCAD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$27.19M
67
Neutral
$93.12M0.54%
53
Neutral
$80.06M0.85%
66
Neutral
$60.39M1.06%
72
Outperform
$49.73M0.32%
66
Neutral
$7.70M1.00%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GCAD
Gabelli Commercial Aerospace & Defense ETF
51.24
19.21
59.98%
LFSC
F/M Emerald Life Sciences Innovation ETF
CEPI
REX Crypto Equity Premium Income ETF
GPTY
YieldMax AI & Tech Portfolio Option Income ETF
GABF
Gabelli Financial Services Opportunities ETF
HVAC
AdvisorShares HVAC and Industrials ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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