NATO - ETF AI Analysis

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Themes Transatlantic Defense ETF (NATO)

Rating:68Neutral

Price Target:―

NATO, the Themes Transatlantic Defense ETF, has a solid overall rating, mainly because many of its largest holdings—like Honeywell, RTX, GE Aerospace, and Lockheed Martin—show strong financial performance, positive earnings outlooks, and strategic growth plans that support future stability. However, weaker names such as Boeing, which faces financial challenges and program delays, and holdings with valuation or technical concerns like Airbus and Rheinmetall, prevent the fund from scoring even higher. The main risk is its concentration in the defense and aerospace sector, which can make the ETF sensitive to industry-specific issues such as supply chain disruptions, government spending changes, and valuation swings.

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)

AUM80.95M

RegionGlobal

Expense Ratio0.35%

Beta0.86

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. Volume37,262

30 Day Avg. Volume25,530

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

47.18

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 (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 largely steered by a handful of industrial heavyweights. Rising names like Lockheed Martin, Rheinmetall, Northrop Grumman, and Boeing are giving the fund a strong tailwind, helped by steady contributions from RTX and Honeywell. GE Aerospace is more of a steady engine than a rocket, while Airbus and Rolls-Royce show mixed momentum as supply chain and cash flow issues occasionally rattle the cockpit. Geographically, it’s a U.S.–Europe duet, tightly focused on one powerful theme: defense.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
RTX	RTX	9.09%	$7.42M	$263.78B	58.53%	74 Outperform
GE	GE Aerospace	7.71%	$6.30M	$323.39B	50.72%	72 Outperform
BA	Boeing	7.37%	$6.02M	$185.30B	29.76%	54 Neutral
HON	Honeywell International	6.23%	$5.09M	$149.42B	5.85%	77 Outperform
RR	Rolls-Royce Holdings	6.04%	$4.93M	£102.67B	130.58%	71 Outperform
EADSF	Airbus Group SE	5.59%	$4.57M	$175.88B	32.84%	68 Neutral
LMT	Lockheed Martin	5.16%	$4.22M	$138.68B	33.98%	70 Outperform
NOC	Northrop Grumman	4.49%	$3.67M	$97.89B	46.03%	76 Outperform
SAF	SAFRAN SA	4.26%	$3.48M	€123.73B	25.14%	67 Neutral
RHM	Rheinmetall	3.87%	$3.16M	€77.06B	120.22%	63 Neutral

NATO Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

39.23

Positive

100DMA

38.61

Positive

200DMA

36.45

Positive

Market Momentum

MACD

0.63

Positive

RSI

47.46

Neutral

STOCH

20.54

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 42.32, equal to the 50-day MA of 39.23, and equal to the 200-day MA of 36.45, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 20.54 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
NATO	―	―	$80.95M	0.35%	―
VEGI	―	―	$99.76M	0.39%	―
SPTE	―	―	$99.48M	0.55%	―
WDGF	―	―	$6.87M	0.45%	―
SHPP	―	―	$3.70M	0.60%	―
SUPL	―	―	$1.06M	0.58%	―

Performance Comparison

NATO

Themes Transatlantic Defense ETF

41.00

14.62

55.42%

VEGI

iShares MSCI Global Agriculture Producers ETF

―

SPTE

SP Funds S&P Global Technology 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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