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WDEF - ETF AI Analysis

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WDEF

WisdomTree Europe Defense Fund (WDEF)

Rating:57Neutral
Price Target:
WDEF, the WisdomTree Europe Defense Fund, has a solid but not top-tier rating, mainly driven by strong, established defense names like Thales and Saab, which benefit from robust financial performance, healthy order backlogs, and positive earnings commentary. However, several key holdings such as Rheinmetall, BAE Systems, Leonardo, and Airbus face bearish technical trends and signs of possible overvaluation, which weigh on the fund’s overall appeal. The main risk factor is that many of its core positions share similar issues—high valuations and recent technical weakness—within the same defense-focused sector, increasing the impact if sentiment toward this area turns negative.
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)

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 tightly hitched to Europe’s defense engine, with heavyweight positions in Thales, BAE Systems, and Rheinmetall steering returns. Thales and BAE have been relatively steady to rising over the year, helping to prop up the fund, while Rheinmetall has lost altitude recently and is holding performance back. Mid-sized stakes in Leonardo, Saab, and HENSOLDT add more defense firepower but show mixed, often lagging, momentum. With most top names clustered in European industrials and aerospace, this ETF is a focused bet on Europe’s defense build-out rather than a broad global mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Thales9.96%$8.48M€47.84B-1.30%
73
Outperform
BAE Systems9.70%$8.26M£59.22B23.73%
61
Neutral
Rheinmetall9.53%$8.12M€61.26B0.52%
63
Neutral
Leonardo Spa5.10%$4.34M€30.31B20.15%
60
Neutral
Saab AB5.08%$4.33Mkr304.74B33.94%
70
Outperform
Airbus Group SE4.86%$4.14M$152.99B18.35%
68
Neutral
HENSOLDT AG4.71%$4.01M€8.43B18.00%
68
Neutral
SAFRAN SA4.48%$3.81M€112.57B17.55%
67
Neutral
Rolls-Royce Holdings4.42%$3.76M£94.80B52.14%
71
Outperform
Dassault Aviation4.22%$3.59M€22.94B-2.02%
71
Outperform

WDEF Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
32.07
Negative
100DMA
31.92
Negative
200DMA
Market Momentum
MACD
-0.61
Positive
RSI
42.37
Neutral
STOCH
21.70
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 31.54, equal to the 50-day MA of 32.07, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.70 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$87.26M0.45%
57
Neutral
$5.00M0.19%
74
Outperform
$4.30M0.19%
70
Outperform
$3.93M0.19%
69
Neutral
$2.94M0.19%
80
Outperform
$2.13M0.19%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WDEF
WisdomTree Europe Defense Fund
30.23
-0.25
-0.82%
HSBH
HSBC Holdings plc ADRhedged
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
ARMH
Arm Holdings PLC ADRhedged
ASMH
ASML Holding NV ADRhedged
BPH
BP p.l.c. ADRhedged
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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