SHLD - ETF AI Analysis

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Global X Defense Tech ETF (SHLD)

Rating:64Neutral

Price Target:―

SHLD, the Global X Defense Tech ETF, has a solid overall rating driven mainly by strong core holdings like General Dynamics, RTX, and Northrop Grumman, which benefit from robust financial performance, healthy backlogs, and positive earnings outlooks. Some holdings such as BAE Systems and Leonardo Spa face bearish technical trends and potential overvaluation, which may weigh on the fund’s rating, and investors should also note the key risk that the ETF is heavily concentrated in the defense and defense-technology sector, making it sensitive to industry-specific and government-related developments.

Positive Factors

Strong Recent Performance

The ETF has shown strong gains over the past month, three months, and year to date, indicating solid recent momentum.

Leading Defense Companies in Top Holdings

Many of the largest positions, such as major U.S. and European defense contractors, have delivered strong or steady performance, helping support the fund’s returns.

Global Diversification Within Defense

Holdings spread across the U.S. and several European and other countries help reduce the risk of being tied to the economic or political conditions of a single market.

Negative Factors

High Sector Concentration in Industrials

With most of the portfolio in industrials and a smaller slice in technology, the fund is heavily exposed to the defense and aerospace cycle rather than the broader market.

Meaningful Single-Stock and Theme Concentration

A handful of large defense names make up a significant share of the ETF, so setbacks at these companies or in the defense industry could weigh heavily on performance.

Moderate Expense Ratio

The fund’s fee is higher than many broad market index ETFs, which slightly reduces the net return investors keep over time.

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

AUM8.13B

RegionGlobal

Expense Ratio0.50%

Beta0.71

IssuerGlobal X

Inception DateSep 11, 2023

Dividend Yield0.47%

Asset ClassEquity

Index TrackedGlobal X Defense Tech Index - Benchmark TR Net

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,452,353

30 Day Avg. Volume1,915,996

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

82.61

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering42

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SHLD Summary

The Global X Defense Tech ETF (SHLD) tracks the Global X Defense Tech Index, focusing on companies involved in defense technology, aerospace, cybersecurity, and related tools used by militaries and governments. It holds well-known names like Lockheed Martin and RTX, giving investors a way to invest in defense and advanced tech in one fund, with stocks from the U.S. and several European countries. Someone might consider SHLD for potential long-term growth tied to defense spending and innovation. A key risk is that it is heavily concentrated in defense and tech, so its price can swing sharply with changes in government budgets or global tensions.

How much will it cost me?The Global X Defense Tech ETF (SHLD) has an expense ratio of 0.5%, which means you’ll pay $5 per year for every $1,000 invested. This is higher than average because it is actively managed to focus on a niche sector like defense technology, requiring more research and specialized management.

What would affect this ETF?The Global X Defense Tech ETF (SHLD) could benefit from increased government spending on defense and advancements in technologies like artificial intelligence and cybersecurity, which are key areas of focus for its top holdings. However, it may face challenges from geopolitical tensions, regulatory changes, or reduced defense budgets in certain regions, which could negatively impact its performance. Its global exposure and reliance on the industrials and technology sectors make it sensitive to broader economic conditions and sector-specific trends.

SHLD Top 10 Holdings

SHLD is essentially a bet on global defense heavyweights, with U.S. giants like Lockheed Martin, RTX, and Northrop Grumman doing much of the lifting as their shares keep rising on strong backlogs and upbeat outlooks. European names such as BAE Systems, Leonardo, and Thales are also pulling their weight, reflecting solid demand across NATO and allied markets. The main drag is Palantir, where the story-rich AI and data angle hasn’t translated into recent stock momentum, leaving this otherwise tightly focused aerospace-and-defense portfolio with one noticeable weak link.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LMT	Lockheed Martin	9.23%	$742.61M	$149.43B	38.89%	70 Outperform
RTX	RTX	7.87%	$633.27M	$278.20B	61.77%	74 Outperform
GD	General Dynamics	7.01%	$564.03M	$95.68B	36.09%	80 Outperform
RHM	Rheinmetall	6.28%	$505.75M	€70.54B	21.90%	63 Neutral
PLTR	Palantir Technologies	6.17%	$496.79M	$362.58B	81.23%	74 Outperform
NOC	Northrop Grumman	4.90%	$394.72M	$104.05B	54.32%	76 Outperform
LHX	L3Harris Technologies	4.83%	$389.10M	$68.04B	70.36%	70 Neutral
BA	BAE Systems	4.74%	$381.57M	£64.95B	51.56%	61 Neutral
LDO	Leonardo Spa	4.33%	$348.90M	€34.76B	39.20%	60 Neutral
SAAB.B	Saab AB	3.96%	$319.16M	kr355.08B	69.90%	70 Outperform

SHLD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

74.20

Positive

100DMA

69.50

Positive

200DMA

65.79

Positive

Market Momentum

MACD

0.91

Negative

RSI

51.94

Neutral

STOCH

67.76

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SHLD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 74.93, equal to the 50-day MA of 74.20, and equal to the 200-day MA of 65.79, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 67.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHLD.

SHLD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SHLD	―	―	$8.13B	0.50%	64 Neutral
CIBR	―	―	$9.97B	0.58%	71 Outperform
BAI	―	―	$8.48B	0.55%	61 Neutral
GRID	―	―	$7.74B	0.56%	63 Neutral
GUNR	―	―	$7.23B	0.46%	59 Neutral
EXI	―	―	$1.21B	0.39%	69 Neutral

Performance Comparison

SHLD

Global X Defense Tech ETF

75.64

29.77

64.90%

CIBR

First Trust NASDAQ Cybersecurity ETF

―

BAI

iShares A.I. Innovation and Tech Active ETF

―

GRID

First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index

―

GUNR

FlexShares Morningstar Global Upstream Natural Resources Index Fund

―

EXI

iShares Global Industrials 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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