WDEF - ETF AI Analysis
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WisdomTree Europe Defense Fund (WDEF)
Rating:57Neutral
Price Target:―
Positive Factors
Focused Exposure to European Defense
The fund targets European defense companies, giving investors direct access to a sector that can benefit from increased regional security spending.
Strong Performance from Several Top Holdings
Key positions such as BAE Systems, Leonardo, Saab, and others have shown strong year-to-date gains, helping support the ETF’s overall results.
Broad Country Diversification Within Europe
Holdings spread across major European markets like the UK, France, Germany, Italy, Sweden, Spain, and the Netherlands help reduce the impact of weakness in any single country.
Negative Factors
High Concentration in a Few Stocks
The largest positions each take up a meaningful share of the portfolio, so setbacks in just a handful of companies could significantly affect returns.
Mixed Recent Performance
While the fund is up year-to-date, its recent three-month performance has been weak, suggesting short-term volatility and changing momentum.
Moderate Expense Ratio
The fund’s fee is not especially low, which means a noticeable portion of returns goes toward expenses each year.
WDEF vs. SPDR S&P 500 ETF (SPY)
AUM96.01M
RegionEurope
Expense Ratio0.45%
Beta1.41
IssuerWisdomTree
Inception DateJul 17, 2025
Dividend Yield0.08%
Asset ClassEquity
Index TrackedWisdomTree Europe Defence Index - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume24,543
30 Day Avg. Volume40,641
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
35.65Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering38
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
WDEF Summary
The WisdomTree Europe Defense Fund (WDEF) is an ETF that follows the WisdomTree Europe Defence Index, focusing on European aerospace and defense companies. It holds well-known names like Airbus and BAE Systems, along with other firms that earn a significant share of their revenue from defense-related activities. Investors might consider WDEF if they want targeted exposure to the potential growth of Europe’s defense industry and to diversify beyond U.S.-focused funds. However, this ETF is heavily tied to the defense sector, so its value can rise or fall sharply with changes in military spending, politics, and global conflicts.
How much will it cost me?The WisdomTree Europe Defense Fund (WDEF) has an expense ratio of 0.45%, meaning you’ll pay $4.50 per year for every $1,000 invested. This is slightly higher than average because the fund is specialized and actively managed to focus on the European defense sector, which requires more research and strategy compared to passively managed funds. However, it provides targeted exposure to a unique and growing industry.
What would affect this ETF?The WisdomTree Europe Defense Fund (WDEF) could benefit from increased defense spending across Europe due to heightened geopolitical tensions and the growing demand for advanced military technology, which aligns with the fund's focus on aerospace and defense companies. However, potential risks include regulatory changes or budget cuts in defense spending, as well as economic slowdowns in Europe that could impact industrial growth and innovation within the sector.
WDEF Top 10 Holdings
WDEF is firmly strapped into Europe’s defense cockpit, with big positions in names like Thales, BAE Systems, and Rheinmetall that have recently been lagging and acting as a bit of a headwind. Offsetting some of that turbulence, aerospace players such as Safran, Rolls-Royce, and Airbus have been rising or holding steady, giving the fund a lift. The ETF is highly concentrated in European industrials and aerospace & defense, with little exposure beyond the region, so its fortunes are closely tied to Europe’s defense spending cycle and sentiment toward the sector.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| BAE Systems | 10.11% | $9.83M | £58.10B | 3.45% | 61 Neutral | |
| Thales | 9.73% | $9.47M | €48.95B | -5.36% | 73 Outperform | |
| Rheinmetall | 8.88% | $8.64M | €51.01B | -39.26% | 63 Neutral | |
| Leonardo Spa | 5.54% | $5.39M | €30.21B | 17.80% | 60 Neutral | |
| Saab AB | 5.35% | $5.21M | kr303.55B | 29.04% | 70 Outperform | |
| Rolls-Royce Holdings | 5.23% | $5.09M | £125.66B | 46.52% | 71 Outperform | |
| SAFRAN SA | 5.21% | $5.07M | €148.71B | 30.20% | 67 Neutral | |
| Airbus Group SE | 5.15% | $5.01M | $185.76B | 12.40% | 68 Neutral | |
| ― | 4.61% | $4.48M | ― | ― | ― | |
| HENSOLDT AG | 4.38% | $4.26M | €8.73B | -22.76% | 68 Neutral |
WDEF Technical Analysis
Negative
―
Price Trends
29.05
Negative
30.71
Negative
30.89
Negative
Market Momentum
-0.08
Negative
47.90
Neutral
66.36
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For WDEF, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 28.31, equal to the 50-day MA of 29.05, and equal to the 200-day MA of 30.89, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 66.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDEF.
WDEF Peer Comparison
Comparison Results
Performance Comparison
WDEF
WisdomTree Europe Defense Fund
28.38
-2.10
-6.89%
STHH
STMicroelectronics NV ADRhedged
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ARMH
Arm Holdings PLC ADRhedged
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ASMH
ASML Holding NV ADRhedged
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XDEF
Xtrackers Europe Defense Technologies ETF
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NVOH
Novo Nordisk A/S (B Shares) ADRhedged
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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.
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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