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NATO - ETF AI Analysis
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Themes Transatlantic Defense ETF (NATO)
Rating:69Neutral
Price Target:
$41.00
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)
AUM58.43M
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. Volume20,678
30 Day Avg. Volume22,574
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
43.34Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering81
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 | 9.11% | $5.32M | $230.81B | 42.73% | 75 Outperform | |
| GE Aerospace | 8.62% | $5.03M | $309.52B | 58.96% | 77 Outperform | |
| Airbus Group SE | 6.78% | $3.96M | $184.89B | 60.16% | 76 Outperform | |
| Boeing | 6.50% | $3.79M | $138.67B | 18.81% | 44 Neutral | |
| Honeywell International | 6.00% | $3.50M | $121.28B | -17.09% | 79 Outperform | |
| Rolls-Royce Holdings | 5.70% | $3.32M | £87.80B | 102.15% | 71 Outperform | |
| SAFRAN SA | 4.60% | $2.68M | €119.32B | 30.57% | 67 Neutral | |
| Lockheed Martin | 4.38% | $2.55M | $104.69B | -13.50% | 70 Outperform | |
| Northrop Grumman | 4.26% | $2.49M | $81.27B | 15.79% | 75 Outperform | |
| Howmet Aerospace | 4.21% | $2.46M | $81.89B | 70.78% | 77 Outperform |
NATO Technical Analysis
Neutral
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Price Trends
38.04
Negative
37.23
Negative
33.93
Positive
Market Momentum
-0.69
Positive
33.24
Neutral
18.27
Positive
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 37.28, equal to the 50-day MA of 38.04, and equal to the 200-day MA of 33.93, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 18.27 is Positive, 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
35.89
9.43
35.64%
FDCF
Fidelity Disruptive Communications ETF
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CANC
Tema Oncology ETF
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SHPP
Pacer Industrials and Logistics ETF
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WDGF
WisdomTree Global Defense Fund
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SUPL
ProShares Supply Chain Logistics ETF
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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.
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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