WDEF - ETF AI Analysis
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WisdomTree Europe Defense Fund (WDEF)
Rating:58Neutral
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)
AUM94.65M
RegionEurope
Expense Ratio0.45%
Beta1.15
IssuerWisdomTree
Inception DateJul 17, 2025
Dividend Yield0.07%
Asset ClassEquity
Index TrackedWisdomTree Europe Defence Index - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume43,364
30 Day Avg. Volume50,047
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
37.12Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering35
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 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 |
|---|---|---|---|---|---|---|
| Thales | 10.29% | $9.38M | €47.17B | -9.79% | 73 Outperform | |
| BAE Systems | 9.68% | $8.82M | £56.53B | 6.20% | 61 Neutral | |
| Rheinmetall | 8.70% | $7.93M | €57.41B | -31.57% | 63 Neutral | |
| Airbus Group SE | 5.35% | $4.88M | $158.47B | 8.70% | 68 Neutral | |
| Leonardo Spa | 5.13% | $4.68M | €30.00B | 0.25% | 60 Neutral | |
| Rolls-Royce Holdings | 4.91% | $4.48M | £102.44B | 46.29% | 71 Outperform | |
| SAFRAN SA | 4.85% | $4.42M | €117.78B | 9.10% | 67 Neutral | |
| HENSOLDT AG | 4.80% | $4.37M | €10.14B | 9.71% | 68 Neutral | |
| Saab AB | 4.78% | $4.36M | kr282.73B | 13.95% | 70 Outperform | |
| Dassault Aviation | 4.34% | $3.96M | €22.01B | -7.71% | 71 Outperform |
WDEF Technical Analysis
Neutral
―
Price Trends
30.82
Negative
31.97
Negative
31.00
Negative
Market Momentum
-0.57
Negative
50.40
Neutral
92.74
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For WDEF, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 29.40, equal to the 50-day MA of 30.82, and equal to the 200-day MA of 31.00, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 92.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WDEF.
WDEF Peer Comparison
Comparison Results
Performance Comparison
WDEF
WisdomTree Europe Defense Fund
29.88
-0.60
-1.97%
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
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ARMH
Arm Holdings PLC ADRhedged
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STHH
STMicroelectronics NV ADRhedged
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―
―
ASMH
ASML Holding NV ADRhedged
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HSBH
HSBC Holdings plc 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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