NATO - ETF AI Analysis
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Themes Transatlantic Defense ETF (NATO)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating strong recent momentum.
Leading Defense and Aerospace Holdings
Many of the top positions in major defense and aerospace companies have delivered strong year-to-date results, helping drive the fund’s returns.
Focused Transatlantic Exposure
Holdings spread across the U.S., U.K., and key European countries give investors targeted exposure to major NATO-region defense markets.
Negative Factors
High Sector Concentration
With almost all assets in industrials, the fund is heavily tied to one sector, increasing the impact of any downturn in defense and aerospace.
Moderate Expense Ratio
The fund’s fee is not especially low, which can slightly reduce long-term returns compared with cheaper ETFs.
Concentration in Top Holdings
A meaningful share of assets is in a small group of large defense contractors, which raises the risk if any of these companies run into problems.
NATO vs. SPDR S&P 500 ETF (SPY)
AUM102.03M
RegionGlobal
Expense Ratio0.35%
Beta0.87
IssuerThemes
Inception DateOct 11, 2024
Dividend YieldN/A
Asset ClassEquity
Index TrackedSolactive Transatlantic Aerospace and Defense Index - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume44,607
30 Day Avg. Volume38,088
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
48.09Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering77
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NATO Summary
The Themes Transatlantic Defense ETF (NATO) tracks the Solactive Transatlantic Aerospace and Defense Index, focusing on defense and aerospace companies across the U.S. and Europe. It holds well-known names like Boeing and Lockheed Martin, along with other major defense and aircraft makers. Investors might consider this ETF if they want targeted exposure to the defense industry, which often benefits from steady government spending and long-term military contracts. However, this fund is heavily concentrated in industrial and defense stocks, so its value can swing with changes in defense budgets, geopolitics, and overall market conditions.
How much will it cost me?The Themes Transatlantic Defense ETF (NATO) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is actively managed to focus on a specific niche, the Aerospace & Defense sector, requiring more research and specialized management.
What would affect this ETF?The NATO ETF could benefit from increased government defense spending and heightened geopolitical tensions, which often drive demand for advanced aerospace and defense technologies. However, it may face challenges from regulatory changes, budget cuts in defense spending, or economic slowdowns that could impact the industrial sector globally.
NATO Top 10 Holdings
This ETF is a pure play on transatlantic aerospace and defense, with performance powered by a tight group of U.S. and European heavyweights. Lockheed Martin, Honeywell, Northrop Grumman, and Howmet are all rising and acting as the fund’s engine, helped by steady demand and big backlogs. GE Aerospace and Rolls-Royce are also pulling their weight with solid momentum. On the flip side, Airbus is losing altitude and Boeing remains choppy, occasionally dragging on returns. Overall, it’s a concentrated industrials bet spread across North America and Europe.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| RTX | 8.82% | $9.00M | $272.93B | 56.05% | 74 Outperform | |
| GE Aerospace | 7.42% | $7.57M | $316.84B | 50.45% | 72 Outperform | |
| Boeing | 7.02% | $7.17M | $165.57B | 30.48% | 54 Neutral | |
| Rolls-Royce Holdings | 5.98% | $6.10M | £104.92B | 58.04% | 71 Outperform | |
| Lockheed Martin | 5.86% | $5.98M | $146.41B | 37.98% | 70 Outperform | |
| SAFRAN SA | 5.36% | $5.47M | €127.12B | 20.59% | 67 Neutral | |
| Honeywell International | 5.31% | $5.42M | $147.11B | 10.34% | 77 Outperform | |
| Airbus Group SE | 4.99% | $5.09M | $154.63B | 4.94% | 68 Neutral | |
| Northrop Grumman | 4.82% | $4.92M | $102.76B | 50.25% | 76 Outperform | |
| Howmet Aerospace | 4.34% | $4.43M | $96.32B | 87.32% | 67 Neutral |
NATO Technical Analysis
Neutral
―
Price Trends
42.39
Negative
39.83
Positive
38.05
Positive
Market Momentum
-0.20
Positive
42.61
Neutral
21.96
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NATO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 42.82, equal to the 50-day MA of 42.39, and equal to the 200-day MA of 38.05, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 21.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NATO.
NATO Peer Comparison
Comparison Results
Performance Comparison
NATO
Themes Transatlantic Defense ETF
41.37
11.77
39.76%
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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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