NATO - ETF AI Analysis

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Themes Transatlantic Defense ETF (NATO)

Rating:68Neutral

Price Target:―

The Themes Transatlantic Defense ETF (NATO) has a solid overall rating, reflecting its focus on strong-performing companies in the aerospace and defense sectors. Holdings like RTX and Honeywell International contribute positively to the fund's rating due to their robust financial performance, strategic investments, and optimistic growth outlooks. However, weaker holdings such as Boeing, which struggles with poor profitability and operational inefficiencies, slightly weigh down the overall score. Investors should note the ETF's concentration in aerospace and defense, which could pose risks if the sector faces challenges.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, such as GE Aerospace and Rolls-Royce, have delivered strong year-to-date performance, driving overall returns.

Focused Sector Exposure

The ETF's heavy allocation to the Industrials sector aligns with its defense theme, benefiting from consistent demand in this industry.

Reasonable Expense Ratio

With a relatively low expense ratio of 0.35%, the ETF offers cost-efficient exposure to its specialized theme.

Negative Factors

Over-Concentration in Industrials

The ETF is heavily concentrated in the Industrials sector, which could make it vulnerable if this industry faces challenges.

Underperforming Holding

Honeywell International, one of the top holdings, has shown negative year-to-date performance, slightly dragging on the fund's overall returns.

Limited Geographic Diversification

The ETF is predominantly focused on U.S. companies, with over 74% exposure, reducing its ability to benefit from broader global market trends.

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

AUM58.37M

RegionGlobal

Expense Ratio0.35%

Beta0.85

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. Volume12,027

30 Day Avg. Volume19,707

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

44.33

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering75

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

NATO Summary

The Themes Transatlantic Defense ETF (Ticker: NATO) is an investment fund that focuses on companies in the Aerospace and Defense industry across North America and Europe. It includes well-known names like Boeing and Lockheed Martin, which are leaders in developing advanced aircraft and defense systems. This ETF follows the Solactive Transatlantic Aerospace and Defense Index, making it a good choice for investors interested in the industrial sector and the growing demand for defense technologies. It offers diversification within a niche sector that benefits from consistent government spending and technological innovation. However, new investors should be aware that the ETF’s performance can be affected by geopolitical tensions or changes in defense budgets.

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

The NATO ETF is heavily concentrated in the Aerospace & Defense sector, with global giants like Airbus and GE Aerospace driving steady performance thanks to robust revenue growth and strategic initiatives. Rolls-Royce has been a standout, rising on improved margins and strategic moves, while Boeing and Honeywell have been lagging, weighed down by financial challenges and bearish momentum. The fund’s global exposure taps into transatlantic defense collaboration, but its reliance on industrial heavyweights means mixed results as some names struggle to navigate valuation concerns and supply chain pressures.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RTX	RTX	8.97%	$5.25M	$239.54B	54.19%	74 Outperform
GE	GE Aerospace	8.39%	$4.91M	$316.24B	81.54%	72 Outperform
BA	Boeing	7.31%	$4.28M	$160.04B	18.67%	54 Neutral
EADSF	Airbus Group SE	6.40%	$3.74M	$180.47B	37.98%	68 Neutral
RR	Rolls-Royce Holdings	5.91%	$3.46M	£92.13B	102.24%	71 Outperform
HON	Honeywell International	5.88%	$3.44M	$122.95B	-16.33%	77 Outperform
SAF	SAFRAN SA	4.61%	$2.70M	€121.40B	39.76%	67 Neutral
LMT	Lockheed Martin	4.45%	$2.60M	$111.13B	-1.47%	70 Outperform
NOC	Northrop Grumman	4.10%	$2.40M	$81.32B	19.31%	76 Outperform
RHM	Rheinmetall	4.05%	$2.37M	€74.14B	150.78%	58 Neutral

NATO Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

37.53

Negative

100DMA

37.24

Positive

200DMA

34.55

Positive

Market Momentum

MACD

-0.08

Negative

RSI

56.03

Neutral

STOCH

84.32

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 36.34, equal to the 50-day MA of 37.53, and equal to the 200-day MA of 34.55, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.32 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
NATO	―	―	$58.37M	0.35%	―
FFND	―	―	$94.57M	1.00%	―
IBLC	―	―	$94.11M	0.47%	―
WDGF	―	―	$3.76M	0.45%	―
SHPP	―	―	$3.63M	0.60%	―
SUPL	―	―	$1.02M	0.58%	―

Performance Comparison

NATO

Themes Transatlantic Defense ETF

37.32

11.36

43.76%

FFND

Future Fund Active ETF

―

IBLC

iShares Blockchain and Tech ETF

―

WDGF

WisdomTree Global Defense Fund

―

SHPP

Pacer Industrials and Logistics ETF

―

SUPL

ProShares Supply Chain Logistics 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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