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SHLD - ETF AI Analysis

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SHLD

Global X Defense Tech ETF (SHLD)

Rating:64Neutral
Price Target:
SHLD, the Global X Defense Tech ETF, has a solid overall rating that reflects its focus on major defense leaders with strong financial performance and healthy backlogs, led by key holdings like General Dynamics, Northrop Grumman, RTX, and Lockheed Martin, which support a positive long-term outlook. The rating is held back somewhat by holdings such as Leonardo Spa and Rheinmetall, where bearish technical trends and valuation concerns introduce more risk. The main risk factor for the ETF is its concentrated exposure to the defense and defense-tech sector, which ties performance closely to government spending and geopolitical developments.
Positive Factors
Large, Established Defense Holdings
The fund’s biggest positions include well-known defense companies that have shown generally strong or steady performance, helping support the ETF’s returns.
Global Diversification
Holdings spread across the U.S., Europe, and several other countries help reduce the risk of being tied to the economic or political conditions of a single region.
Focused Industry Exposure
A heavy tilt toward industrial and defense-related businesses gives investors targeted exposure to the defense technology theme rather than a broad, mixed portfolio.
Negative Factors
Recent Weak Performance
The ETF has shown weak performance over the past year-to-date and recent months, which may concern investors looking for stronger momentum.
High Concentration in Top Holdings
A small group of companies makes up a large share of the portfolio, increasing the impact that any one stock’s downturn can have on the fund.
Moderate Expense Ratio
The fund’s expense ratio is not especially low, meaning fees may take a noticeable bite out of long-term returns compared with cheaper ETFs.

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

SHLD Summary

Global X Defense Tech ETF (SHLD) is a fund that follows the Global X Defense Tech Index, focusing on companies tied to defense and advanced technology. It holds well-known names like Lockheed Martin and RTX, along with firms in cybersecurity, aerospace, and defense hardware. Investors might consider SHLD if they want growth potential from defense spending and diversification across major defense contractors and tech-focused defense firms around the world. A key risk is that it is heavily concentrated in defense and related tech stocks, so its value can rise or fall sharply with changes in defense budgets, geopolitics, and the broader stock market.
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 powered by a core of U.S. defense heavyweights, with Lockheed Martin, RTX, and General Dynamics doing most of the lifting as their shares keep rising on strong backlogs and contract wins. Northrop Grumman is more mixed, losing some steam lately, while Palantir’s slide has been a noticeable drag despite its AI buzz. European names like BAE Systems, Thales, and Leonardo add global flavor but show choppier momentum. Overall, this is a tightly focused aerospace and defense play, leaning heavily on big Western contractors and defense tech innovators.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
RTX10.04%$715.20M$294.59B35.89%
74
Outperform
General Dynamics9.31%$663.53M$106.33B22.03%
80
Outperform
Lockheed Martin8.85%$630.76M$134.16B35.95%
70
Outperform
Northrop Grumman8.04%$572.62M$78.02B-6.59%
76
Outperform
Palantir Technologies7.33%$522.69M$296.14B-22.45%
74
Outperform
BAE Systems4.59%$327.42M£59.34B14.07%
61
Neutral
L3Harris Technologies4.47%$318.20M$56.86B8.54%
70
Neutral
Rheinmetall3.97%$283.01M€50.71B-33.39%
63
Neutral
Thales3.82%$272.54M€51.24B3.28%
73
Outperform
Leonardo Spa3.71%$264.51M€31.09B12.29%
60
Neutral

SHLD Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
62.52
Positive
100DMA
66.69
Negative
200DMA
67.84
Negative
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SHLD, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 61.91, equal to the 50-day MA of 62.52, and equal to the 200-day MA of 67.84, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHLD.

SHLD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.88B0.50%
64
Neutral
$8.09B0.39%
64
Neutral
$7.20B0.65%
68
Neutral
$5.63B0.75%
53
Neutral
$4.25B0.55%
64
Neutral
$1.42B0.39%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SHLD
Global X Defense Tech ETF
62.77
1.23
2.00%
IXN
iShares Global Tech ETF
COPX
Global X Copper Miners ETF
ARKK
Ark Innovation Etf
IDEF
iShares Defense Industrials Active ETF
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.
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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