MISL - ETF AI Analysis

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First Trust Indxx Aerospace & Defense ETF (MISL)

Rating:69Neutral

Price Target:―

The First Trust Indxx Aerospace & Defense ETF (MISL) has a solid overall rating, reflecting its strong holdings in companies like General Dynamics (GD) and GE Aerospace (GE), which contribute positively through robust financial performance, strong order backlogs, and raised guidance. However, the ETF's rating is tempered by weaker holdings such as Boeing (BA), which faces financial challenges and bearish technical indicators. A key risk factor for this ETF is its concentration in the aerospace and defense sector, which could expose it to industry-specific risks.

Positive Factors

Strong Top Holdings

Several key holdings, such as Rocket Lab USA and AST SpaceMobile, have delivered strong year-to-date performance, boosting the ETF's returns.

Sector Focus on Industrials

The ETF's heavy exposure to the aerospace and defense sector aligns with a historically resilient industry during periods of geopolitical uncertainty.

Healthy Year-to-Date Performance

The fund has shown steady growth year-to-date, indicating positive momentum for investors.

Negative Factors

High Concentration in U.S. Market

The ETF is almost entirely focused on U.S. companies, limiting diversification across global markets.

Overweight in Industrials

Nearly 89% of the portfolio is concentrated in the industrials sector, increasing vulnerability to sector-specific risks.

Relatively High Expense Ratio

The ETF's expense ratio is higher than many passive funds, which could reduce net returns for long-term investors.

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

AUM213.29M

RegionNorth America

Expense Ratio0.60%

Beta0.86

IssuerFirst Trust

Inception DateOct 25, 2022

Dividend Yield0.76%

Asset ClassEquity

Index TrackedIndxx US Aerospace & Defense Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume18,368

30 Day Avg. Volume20,635

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

48.37

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering40

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

MISL Summary

The First Trust Indxx Aerospace & Defense ETF (ticker: MISL) is an investment fund that focuses on companies in the aerospace and defense industries. It tracks the Indxx Aerospace & Defense Index, which includes major players like Boeing and Lockheed Martin, as well as emerging innovators in aviation, space exploration, and defense technology. This ETF could be appealing for investors looking to benefit from growth in global security and cutting-edge aerospace advancements. However, it’s important to note that its performance is closely tied to the aerospace and defense sector, which can be affected by government spending and geopolitical events.

How much will it cost me?The expense ratio for the First Trust Indxx Aerospace & Defense ETF (MISL) is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on a specialized sector, requiring more research and management effort.

What would affect this ETF?The MISL ETF, focused on aerospace and defense, could benefit from increased government spending on defense and advancements in space exploration, which may drive growth for its top holdings like Boeing and Lockheed Martin. However, it may face challenges from potential defense budget cuts, geopolitical tensions, or regulatory changes impacting the sector. Additionally, economic slowdowns could negatively affect demand for aerospace innovation and technology.

MISL Top 10 Holdings

The First Trust Indxx Aerospace & Defense ETF (MISL) is heavily concentrated in U.S. industrials, with aerospace and defense giants like RTX, General Dynamics, and GE Aerospace driving much of its performance. GE Aerospace is a standout, rising steadily thanks to strong revenue growth and raised guidance, while RTX and General Dynamics show mixed momentum, balancing solid backlogs with valuation concerns. On the flip side, Boeing is dragging the fund, struggling with financial challenges despite a robust order book. Overall, the ETF’s focus on innovation and defense positions it well, though some names face turbulence.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RTX	RTX	9.13%	$19.47M	$230.81B	43.05%	75 Outperform
GD	General Dynamics	8.57%	$18.27M	$92.13B	20.94%	80 Outperform
GE	GE Aerospace	8.42%	$17.95M	$309.52B	58.96%	77 Outperform
LMT	Lockheed Martin	7.49%	$15.97M	$104.69B	-13.95%	70 Outperform
BA	Boeing	7.24%	$15.44M	$138.67B	19.71%	44 Neutral
HWM	Howmet Aerospace	4.63%	$9.87M	$81.89B	70.78%	77 Outperform
TDG	Transdigm Group	4.43%	$9.44M	$76.17B	8.26%	69 Neutral
HEI	HEICO	4.29%	$9.14M	$38.02B	10.92%	74 Outperform
LHX	L3Harris Technologies	3.95%	$8.43M	$51.69B	12.14%	70 Neutral
NOC	Northrop Grumman	3.82%	$8.14M	$81.27B	16.43%	75 Outperform

MISL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

41.73

Negative

100DMA

40.25

Positive

200DMA

36.22

Positive

Market Momentum

MACD

-0.58

Positive

RSI

44.39

Neutral

STOCH

53.73

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MISL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 41.11, equal to the 50-day MA of 41.73, and equal to the 200-day MA of 36.22, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 53.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MISL.

MISL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MISL	―	―	$213.29M	0.60%	―
IYT	―	―	$719.34M	0.38%	―
RSPN	―	―	$663.75M	0.40%	―
PRN	―	―	$347.52M	0.60%	―
PKB	―	―	$276.48M	0.57%	―
RSHO	―	―	$169.89M	0.75%	―

Performance Comparison

MISL

First Trust Indxx Aerospace & Defense ETF

40.52

8.75

27.54%

IYT

iShares US Transportation ETF

―

RSPN

Invesco S&P 500 Equal Weight Industrials ETF

―

PRN

Invesco DWA Industrials Momentum ETF

―

PKB

Invesco Dynamic Building & Construction ETF

―

RSHO

Tema American Reshoring 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.

Disclaimer

This 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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