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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, reflecting a mix of strong European defense leaders and some valuation and technical risks. Major holdings like Thales and Rolls-Royce support the fund’s quality with strong financial performance, positive earnings calls, and strategic growth, while companies such as Rheinmetall and Airbus face bearish technical trends, high valuations, or cash flow challenges that temper the overall score and highlight the risk of owning several stocks that may be overvalued or under short-term pressure.
Positive Factors
Strong AUM Base
The fund manages a solid pool of assets, suggesting it has attracted meaningful investor interest and liquidity.
Leading Defense Names in Top Holdings
Several of the largest positions, such as BAE Systems, Saab, Leonardo, Rolls-Royce, Airbus, and SAFRAN, have shown strong or steady performance, helping support the ETF’s returns.
Broad European Country Diversification
Holdings spread across the UK, France, Germany, Italy, Sweden, Spain, the Netherlands, and some U.S. exposure help reduce the impact of problems in any single European market.
Negative Factors
Recent Weak Overall Performance
The ETF’s returns over the year to date and the last three months have been negative, signaling recent weakness in the strategy.
Heavy Concentration in a Few Defense Stocks
A small group of companies makes up a large share of the portfolio, which increases the risk if any of these key holdings run into trouble.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

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

WDEF Summary

WDEF, the WisdomTree Europe Defense Fund, is an ETF that follows the WisdomTree Europe Defence Index, focusing on European aerospace and defense companies. It holds well-known names like BAE Systems and Airbus, along with other firms that earn at least 10% of their revenue from defense-related activities. Investors might consider WDEF if they want targeted exposure to Europe’s defense industry, which could benefit from rising defense budgets and long-term growth in military technology. However, this fund is concentrated in defense and industrial stocks, so its value can go up and down sharply with changes in geopolitics, government spending, and the broader stock market.
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 essentially a bet on Europe’s defense muscle, with heavyweights like BAE Systems and Thales setting the tone. Both have been rising recently, helping to pull the fund higher even as their longer-term trends look more mixed. Rheinmetall, once a star, has been lagging this year and can feel like a brake on performance. On the brighter side, Saab and HENSOLDT have been climbing steadily, adding fresh momentum. With most exposure in European industrial and aerospace names, this ETF is tightly tied to Europe’s defense story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
BAE Systems10.18%$9.76M£59.19B16.52%
61
Neutral
Thales10.02%$9.60M€50.43B3.28%
73
Outperform
Rheinmetall9.17%$8.79M€53.81B-34.78%
63
Neutral
Saab AB5.51%$5.28Mkr323.40B10.34%
70
Outperform
Leonardo Spa5.48%$5.26M€30.90B13.45%
60
Neutral
Airbus Group SE5.22%$5.00M$190.21B14.46%
68
Neutral
SAFRAN SA5.01%$4.81M€141.67B17.44%
67
Neutral
Rolls-Royce Holdings4.84%$4.64M£115.00B40.07%
71
Outperform
HENSOLDT AG4.67%$4.48M€9.77B-12.61%
68
Neutral
4.22%$4.05M

WDEF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.83
Positive
100DMA
29.93
Positive
200DMA
30.54
Negative
Market Momentum
MACD
RSI
STOCH
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 28.76, equal to the 50-day MA of 28.83, and equal to the 200-day MA of 30.54, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$96.79M0.45%
57
Neutral
$6.01M0.19%
78
Outperform
$4.83M0.19%
67
Neutral
$4.50M0.19%
71
Outperform
$4.44M0.35%
60
Neutral
$3.39M0.19%
55
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WDEF
WisdomTree Europe Defense Fund
30.38
1.12
3.83%
ASMH
ASML Holding NV ADRhedged
ARMH
Arm Holdings PLC ADRhedged
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
XDEF
Xtrackers Europe Defense Technologies ETF
STHH
STMicroelectronics NV 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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