NATO - ETF AI Analysis
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Themes Transatlantic Defense ETF (NATO)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Defense Leaders in Top Holdings
Several major defense and aerospace companies in the top positions have shown strong year-to-date gains, helping support the fund’s overall performance.
Transatlantic Geographic Diversification
Holdings spread across the U.S., U.K., France, Germany, and other NATO-aligned countries reduce reliance on any single national market.
Moderate Expense Ratio
The fund’s expense ratio is reasonably low for a specialized thematic ETF, allowing investors to keep more of their returns.
Negative Factors
Heavy Concentration in Industrials
With most assets in the industrials sector, the ETF is highly sensitive to downturns in defense and aerospace industries.
Mixed Performance Among Top Holdings
Some of the largest positions have shown weak or negative year-to-date performance, which can drag on the fund’s returns.
Recent Short-Term Performance Weakness
The ETF has experienced a recent three-month decline, signaling near-term volatility that investors should be prepared for.
NATO vs. SPDR S&P 500 ETF (SPY)
AUM97.38M
RegionGlobal
Expense Ratio0.35%
Beta0.89
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. Volume41,100
30 Day Avg. Volume35,650
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
47.85Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering76
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NATO Summary
The Themes Transatlantic Defense ETF (ticker: NATO) tracks the Solactive Transatlantic Aerospace and Defense Index, focusing on defense and aerospace companies in North America and Europe. It holds well-known names like Boeing and Lockheed Martin, along with other major contractors that build aircraft, engines, and defense systems. Investors might consider this ETF if they want targeted exposure to the defense industry, which often benefits from steady government spending and long-term contracts, while still getting diversification across many companies and countries. A key risk is that it is heavily tied to the defense sector, so it can rise or fall with changes in military budgets and geopolitical tensions.
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 firmly strapped into the aerospace and defense cockpit, with a transatlantic mix of U.S. heavyweights and European champions driving the story. Honeywell, Howmet, and Rolls-Royce have been the main engines of recent gains, steadily climbing on solid earnings and upbeat outlooks. Lockheed Martin is also pulling its weight, even if supply chain issues occasionally rattle the ride. On the flip side, Boeing and Airbus have been losing altitude, and Northrop Grumman’s recent weakness has added some drag to an otherwise resilient, industrial-heavy portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| GE Aerospace | 8.71% | $8.56M | $342.21B | 30.46% | 72 Outperform | |
| Boeing | 7.46% | $7.33M | $169.84B | -0.73% | 54 Neutral | |
| RTX | 7.35% | $7.22M | $243.74B | 30.12% | 74 Outperform | |
| Rolls-Royce Holdings | 6.47% | $6.36M | £105.40B | 38.44% | 71 Outperform | |
| Honeywell International | 6.26% | $6.15M | $135.58B | -5.79% | 77 Outperform | |
| Lockheed Martin | 5.40% | $5.30M | $120.76B | 8.16% | 70 Outperform | |
| Airbus Group SE | 4.82% | $4.74M | $162.57B | 9.30% | 68 Neutral | |
| Howmet Aerospace | 4.59% | $4.51M | $100.79B | 45.72% | 67 Neutral | |
| SAFRAN SA | 4.42% | $4.34M | €124.45B | 13.53% | 67 Neutral | |
| Northrop Grumman | 3.68% | $3.61M | $77.32B | 10.79% | 76 Outperform |
NATO Technical Analysis
Negative
―
Price Trends
39.37
Negative
40.71
Negative
39.23
Negative
Market Momentum
>-0.01
Positive
48.45
Neutral
14.22
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NATO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 39.23, equal to the 50-day MA of 39.37, and equal to the 200-day MA of 39.23, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATO.
NATO Peer Comparison
Comparison Results
Performance Comparison
NATO
Themes Transatlantic Defense ETF
39.12
5.41
16.05%
HECO
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IBLC
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WDGF
WisdomTree Global Defense Fund
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SUPL
ProShares Supply Chain Logistics ETF
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SHPP
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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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