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WDEF - ETF AI Analysis
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WisdomTree Europe Defense Fund (WDEF)
Rating:62Neutral
Price Target:
$33.00
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)
AUM28.05M
RegionEurope
Expense Ratio0.45%
Beta0.98
IssuerWisdomTree
Inception DateJul 17, 2025
Dividend YieldN/A
Asset ClassEquity
Index TrackedWisdomTree Europe Defence Index - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume21,458
30 Day Avg. Volume22,119
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
33.58Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering33
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 and Rheinmetall leading the charge. Thales has been steady, benefiting from strong financial performance, while Rheinmetall’s recent dip reflects bearish technical trends despite solid fundamentals. BAE Systems and Saab AB are lagging, weighed down by valuation concerns and weak momentum. On the brighter side, Airbus and Safran are rising, supported by robust operational efficiency and positive sentiment. With its focus on European defense, the fund’s performance hinges on geopolitical dynamics and sector innovation.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Thales | 10.97% | $3.09M | €51.93B | 67.85% | 73 Outperform | |
| BAE Systems | 10.07% | $2.84M | £54.99B | 50.15% | 68 Neutral | |
| Rheinmetall | 9.81% | $2.77M | €80.06B | 254.12% | 60 Neutral | |
| Leonardo Spa | 6.96% | $1.96M | €29.76B | 135.64% | 66 Neutral | |
| Saab AB | 5.88% | $1.66M | kr275.76B | 121.10% | 75 Outperform | |
| Airbus Group SE | 4.79% | $1.35M | $191.50B | 59.60% | 76 Outperform | |
| SAFRAN SA | 4.78% | $1.35M | €127.23B | 45.45% | 67 Neutral | |
| Rolls-Royce Holdings | 4.49% | $1.26M | £96.40B | 109.38% | 71 Outperform | |
| HENSOLDT AG | 4.45% | $1.25M | €11.09B | 201.29% | 65 Neutral | |
| Dassault Aviation | 4.37% | $1.23M | €21.86B | 47.22% | 69 Neutral |
WDEF Technical Analysis
Positive
―
Price Trends
31.13
Positive
Market Momentum
-0.13
Positive
48.27
Neutral
80.70
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 31.99, equal to the 50-day MA of 31.13, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 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
Performance Comparison
WDEF
WisdomTree Europe Defense Fund
31.42
0.92
3.02%
EUAD
Select STOXX Europe Aerospace & Defense ETF
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HSBH
HSBC Holdings plc ADRhedged
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SHEH
Shell plc ADRhedged
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―
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
―
―
―
AZNH
AstraZeneca 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.
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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