MISL - ETF AI Analysis

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First Trust Indxx Aerospace & Defense ETF (MISL)

Rating:68Neutral

Price Target:―

MISL, the First Trust Indxx Aerospace & Defense ETF, earns a solid overall rating largely because many of its biggest positions—like General Dynamics, RTX, GE Aerospace, and Northrop Grumman—show strong financial performance, healthy backlogs, and positive earnings outlooks that support long-term growth. However, weaker holdings such as Boeing and AST SpaceMobile, which face profitability, leverage, and operational challenges, weigh on the fund, and investors should also note the main risk that the ETF is heavily concentrated in the aerospace and defense sector, making it sensitive to industry-specific and government-related developments.

Positive Factors

Strong Recent Performance

The ETF has shown strong gains so far this year and over recent months, indicating solid momentum in its aerospace and defense holdings.

Leading Defense Companies in Top Holdings

Major positions in well-known defense contractors like Lockheed Martin, Boeing, and RTX have delivered generally strong results, helping support the fund’s overall performance.

Meaningful Fund Size

With over a billion dollars in assets, the ETF is a sizable fund, which can help with trading liquidity and long-term viability.

Negative Factors

High Sector Concentration

The portfolio is heavily focused on industrials and aerospace and defense, so it may be more sensitive to downturns or policy changes affecting this single industry.

Almost Entirely U.S.-Focused

With nearly all assets in U.S. companies, the fund offers little geographic diversification and is highly tied to the U.S. market and defense spending environment.

Above-Average Expense Ratio

The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of staying with investors.

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

AUM1.48B

RegionNorth America

Expense Ratio0.60%

Beta0.86

IssuerFirst Trust

Inception DateOct 25, 2022

Dividend Yield0.64%

Asset ClassEquity

Index TrackedIndxx US Aerospace & Defense Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume152,735

30 Day Avg. Volume857,803

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

54.19

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering38

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

MISL Summary

MISL is an ETF that follows the Indxx Aerospace & Defense Index, focusing on U.S. companies in aviation, space, and military technology. It holds well-known names like Lockheed Martin and Boeing, along with other firms involved in aircraft, satellites, and defense systems. Someone might invest in MISL to seek growth from long-term spending on defense and space, while getting instant diversification across many companies in this niche. A key risk is that it is heavily concentrated in the aerospace and defense sector, so its price can swing sharply with changes in government budgets, wars, or political decisions.

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

MISL is a pure play on U.S. aerospace and defense, with Industrials giants steering the ship. Lockheed Martin, Boeing, RTX, and General Dynamics are all rising, giving the fund a solid lift as defense spending and backlogs stay robust. GE Aerospace looks more mixed, recently losing a bit of steam and acting as a mild drag. On the higher-growth edge, AST SpaceMobile and Rocket Lab are shooting higher but bring more volatility. Overall, the ETF is tightly focused on defense contractors, with a small tech tilt and little geographic diversification beyond the U.S.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LMT	Lockheed Martin	9.33%	$135.36M	$144.85B	44.42%	70 Outperform
RTX	RTX	8.40%	$121.87M	$262.00B	54.75%	74 Outperform
BA	Boeing	8.12%	$117.77M	$190.52B	31.96%	54 Neutral
GD	General Dynamics	7.89%	$114.41M	$97.02B	40.70%	80 Outperform
GE	GE Aerospace	7.86%	$114.04M	$331.77B	52.02%	72 Outperform
NOC	Northrop Grumman	4.42%	$64.12M	$97.22B	53.39%	76 Outperform
HWM	Howmet Aerospace	4.26%	$61.82M	$90.25B	75.77%	67 Neutral
LHX	L3Harris Technologies	4.08%	$59.23M	$64.55B	74.77%	70 Neutral
ASTS	AST SpaceMobile	4.00%	$58.00M	$35.37B	269.86%	54 Neutral
TDG	Transdigm Group	3.84%	$55.68M	$74.09B	-3.94%	69 Neutral

MISL Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

45.61

Positive

100DMA

43.68

Positive

200DMA

40.19

Positive

Market Momentum

MACD

0.58

Positive

RSI

48.61

Neutral

STOCH

48.47

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MISL, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 49.18, equal to the 50-day MA of 45.61, and equal to the 200-day MA of 40.19, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MISL.

MISL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MISL	―	―	$1.48B	0.60%	―
AIRR	―	―	$8.57B	0.69%	―
PPA	―	―	$7.99B	0.58%	―
VIS	―	―	$7.34B	0.09%	―
XAR	―	―	$5.92B	0.35%	―
IYJ	―	―	$2.26B	0.38%	―

Performance Comparison

MISL

First Trust Indxx Aerospace & Defense ETF

47.59

17.70

59.22%

AIRR

First Trust RBA American Industrial Renaissance ETF

―

PPA

Invesco Aerospace & Defense ETF

―

VIS

Vanguard Industrials ETF

―

XAR

SPDR S&P Aerospace & Defense ETF

―

IYJ

iShares U.S. 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.

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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