WDEF - ETF AI Analysis

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WisdomTree Europe Defense Fund (WDEF)

Rating:62Neutral

Price Target:―

The WisdomTree Europe Defense Fund (WDEF) has a balanced overall rating, reflecting both its strengths and some challenges among its holdings. Top contributors like Thales and Saab AB stand out due to their strong financial performance and positive earnings call sentiment, which highlight robust growth and operational efficiency. However, holdings such as Rheinmetall and Leonardo Spa face bearish technical trends and valuation concerns, which slightly weigh on the fund's overall rating. A key risk factor is the potential overvaluation and bearish momentum observed in several holdings, which could impact short-term performance.

Positive Factors

Strong Top Holdings

Several key holdings, such as Rheinmetall and Saab AB, have shown strong year-to-date performance, supporting the ETF’s overall returns.

Focused Geographic Exposure

The ETF is heavily invested in European markets, providing targeted exposure to defense companies in countries like the UK, France, and Germany.

Reasonable Expense Ratio

The fund’s expense ratio of 0.45% is competitive for a specialized ETF, helping investors retain more of their returns.

Negative Factors

Sector Over-Concentration

With over 90% of assets in the Industrials sector, the ETF is highly exposed to risks specific to this industry.

Weak Short-Term Performance

The ETF has experienced a decline in the past month, which may concern investors seeking steady returns.

Limited U.S. Exposure

The fund has minimal exposure to U.S. companies, which could limit diversification and resilience against global market shifts.

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

AUM40.55M

RegionEurope

Expense Ratio0.45%

Beta1.02

IssuerWisdomTree

Inception DateJul 17, 2025

Dividend Yield0.06%

Asset ClassEquity

Index TrackedWisdomTree Europe Defence Index - Benchmark TR Net

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume38,355

30 Day Avg. Volume20,621

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

34.38

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering31

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

WDEF Summary

The WisdomTree Europe Defense Fund (WDEF) is an ETF that focuses on European companies in the Aerospace & Defense sector. It tracks the WisdomTree Europe Defence Index, which includes businesses that earn at least 10% of their revenue from defense-related activities. Some well-known companies in this fund are BAE Systems and Thales. Investors might consider WDEF for its potential growth tied to the defense industry's innovation and increasing geopolitical importance, as well as for diversification into European industrial leaders. However, new investors should be aware that the fund’s performance is closely tied to the defense sector, which can be sensitive to changes in government spending and global politics.

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

The WisdomTree Europe Defense Fund (WDEF) is heavily concentrated in the Aerospace & Defense sector, with industrial giants like Thales, BAE Systems, and Rheinmetall leading the charge. While Rolls-Royce and Leonardo Spa have been rising steadily, thanks to strong earnings and strategic initiatives, others like BAE Systems and Rheinmetall are lagging due to bearish technical trends and valuation concerns. The fund’s European focus provides exposure to a region increasingly prioritizing defense spending, but mixed performance among its top holdings suggests a bumpy ride for investors seeking consistent growth.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
HO	Thales	10.79%	$4.51M	€54.67B	83.49%	73 Outperform
BA	BAE Systems	10.43%	$4.36M	£59.91B	87.32%	61 Neutral
RHM	Rheinmetall	9.78%	$4.09M	€87.17B	192.19%	63 Neutral
SAAB.B	Saab AB	7.43%	$3.11M	kr364.76B	202.28%	70 Outperform
LDO	Leonardo Spa	7.24%	$3.03M	€33.64B	110.24%	60 Neutral
RR	Rolls-Royce Holdings	4.67%	$1.96M	£108.65B	142.15%	71 Outperform
BAB	Babcock International	4.67%	$1.95M	£7.32B	201.02%	67 Neutral
SAF	SAFRAN SA	4.59%	$1.92M	€130.56B	43.36%	67 Neutral
EADSF	Airbus Group SE	4.56%	$1.91M	$198.48B	54.98%	68 Neutral
AM	Dassault Aviation	4.52%	$1.89M	€24.10B	49.74%	71 Outperform

WDEF Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

29.46

Positive

100DMA

30.31

Positive

200DMA

Market Momentum

MACD

1.25

Negative

RSI

83.46

Negative

STOCH

97.27

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For WDEF, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 30.22, equal to the 50-day MA of 29.46, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 1.25 indicates Negative momentum. The RSI at 83.46 is Negative, neither overbought nor oversold. The STOCH value of 97.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WDEF.

WDEF Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
WDEF	―	―	$40.55M	0.45%	―
PBEU	―	―	$19.39M	0.13%	―
HSBH	―	―	$6.20M	0.19%	―
NVOH	―	―	$4.02M	0.19%	―
SHEH	―	―	$2.06M	0.19%	―
AZNH	―	―	$1.67M	0.19%	―

Performance Comparison

WDEF

WisdomTree Europe Defense Fund

34.55

4.07

13.35%

PBEU

Portfolio Building Block European Banks Index ETF

―

HSBH

HSBC Holdings plc ADRhedged

―

NVOH

Novo Nordisk A/S (B Shares) ADRhedged

―

SHEH

Shell plc ADRhedged

―

AZNH

AstraZeneca PLC 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.

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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