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NATO - ETF AI Analysis

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NATO

Themes Transatlantic Defense ETF (NATO)

Rating:68Neutral
Price Target:
NATO, the Themes Transatlantic Defense ETF, has a solid overall rating driven mainly by strong, diversified aerospace and defense leaders like Honeywell, Northrop Grumman, RTX, and GE, which show healthy financial performance and positive outlooks. However, holdings such as Boeing and Airbus, which face financial challenges, valuation concerns, and operational or supply chain issues, weigh on the fund’s rating. The main risk factor is its concentrated exposure to the transatlantic aerospace and defense sector, which can be sensitive to government budgets, geopolitical events, and industry-specific disruptions.
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)

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 global aerospace and defense, with most of its firepower in big U.S. and European contractors. Lockheed Martin, Northrop Grumman, and BAE Systems are doing the heavy lifting, with their shares rising on strong backlogs and steady defense spending. RTX and Honeywell are also helping, though their momentum is a bit more measured. On the flip side, GE Aerospace, Boeing, Airbus, and Safran have been lagging, so weakness in commercial aviation is acting like a headwind against the fund’s otherwise sturdy defense engine.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
RTX8.64%$9.41M$272.74B57.15%
74
Outperform
GE Aerospace7.51%$8.19M$328.30B69.73%
72
Outperform
Boeing7.17%$7.82M$172.93B38.76%
54
Neutral
Rolls-Royce Holdings6.28%$6.84M£106.43B85.92%
71
Outperform
Lockheed Martin5.60%$6.11M$143.54B29.23%
70
Outperform
SAFRAN SA5.53%$6.03M€130.62B53.20%
67
Neutral
Airbus Group SE5.24%$5.71M$156.48B28.55%
68
Neutral
Honeywell International5.18%$5.65M$149.41B18.38%
77
Outperform
Howmet Aerospace4.51%$4.92M$101.86B101.06%
67
Neutral
Northrop Grumman4.44%$4.84M$95.62B26.17%
76
Outperform

NATO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
41.50
Negative
100DMA
40.10
Positive
200DMA
38.54
Positive
Market Momentum
MACD
-0.32
Negative
RSI
50.94
Neutral
STOCH
89.18
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NATO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 39.89, equal to the 50-day MA of 41.50, and equal to the 200-day MA of 38.54, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 89.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NATO.

NATO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$110.02M0.35%
68
Neutral
$994.91M0.70%
59
Neutral
$909.83M0.75%
72
Outperform
$877.63M0.60%
64
Neutral
$868.57M0.40%
63
Neutral
$774.52M0.75%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NATO
Themes Transatlantic Defense ETF
40.67
11.82
40.97%
BLOK
Amplify Transformational Data Sharing Etf
IVES
Dan IVES Wedbush AI Revolution ETF
JETS
U.S. Global Jets ETF
GII
SPDR S&P Global Infrastructure ETF
ARKX
ARK Space Exploration & Innovation 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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