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WDEF - ETF AI Analysis
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WisdomTree Europe Defense Fund (WDEF)
Rating:61Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the year and in recent months, indicating solid momentum in its underlying holdings.
Leading Defense Companies in Top Holdings
Many of the largest positions, such as major European defense and aerospace firms, have delivered strong year-to-date performance, helping drive the fund’s returns.
Broad European Country Exposure
Holdings spread across several key European markets like the UK, France, Germany, Italy, and Sweden help reduce reliance on any single country’s economy.
Negative Factors
High Sector Concentration in Industrials
With most assets in industrials, the fund is heavily tied to the defense and aerospace cycle, which can increase volatility if that sector weakens.
Moderate Expense Ratio
The fund’s fee is not especially low, which means costs may take a noticeable bite out of long-term returns compared with cheaper ETFs.
Relatively Small Asset Base
The ETF manages a modest amount of assets, which can sometimes mean lower trading volumes and wider bid-ask spreads for investors.
WDEF vs. SPDR S&P 500 ETF (SPY)
AUM84.07M
RegionEurope
Expense Ratio0.45%
Beta1.04
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. Volume51,167
30 Day Avg. Volume55,672
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
35.97Price 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 follows the WisdomTree Europe Defence Index, focusing on European companies in the aerospace and defense industry. It mainly holds industrial firms from countries like the UK, France, and Germany. Well-known holdings include BAE Systems and Airbus, which make military equipment, aircraft, and related technology. An investor might choose this ETF to tap into potential growth in defense spending and to get targeted exposure to Europe’s defense sector. However, it is heavily concentrated in defense and industrial stocks, so its price can swing with geopolitical events and sector-specific news.
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 pure play on Europe’s defense machine, with a tight cluster of industrial heavyweights steering returns. BAE Systems and Thales are doing much of the heavy lifting, with steadily rising share prices that help anchor the fund. Dassault Aviation, Safran, and Rolls-Royce are also climbing, adding extra thrust to performance. On the flip side, Rheinmetall, Saab, and Babcock have shown more mixed, recently lagging trading action, occasionally acting as a brake. Overall, this is a Europe-focused, defense-heavy bet rather than a broad, diversified equity basket.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| BAE Systems | 11.74% | $9.97M | £66.99B | 48.12% | 61 Neutral | |
| Thales | 10.38% | $8.82M | €52.39B | 8.64% | 73 Outperform | |
| Rheinmetall | 8.19% | $6.96M | €71.94B | 22.28% | 63 Neutral | |
| Leonardo Spa | 8.04% | $6.83M | €36.74B | 45.21% | 60 Neutral | |
| Saab AB | 7.45% | $6.33M | kr366.79B | 84.25% | 70 Outperform | |
| ― | 5.71% | $4.85M | ― | ― | ― | |
| Dassault Aviation | 5.11% | $4.34M | €26.98B | 19.41% | 71 Outperform | |
| Rolls-Royce Holdings | 4.78% | $4.06M | £108.04B | 71.54% | 71 Outperform | |
| SAFRAN SA | 4.52% | $3.84M | €128.45B | 23.91% | 67 Neutral | |
| Babcock International | 4.45% | $3.78M | £6.90B | 91.96% | 67 Neutral |
WDEF Technical Analysis
Negative
―
Price Trends
33.13
Negative
31.22
Positive
Market Momentum
0.03
Positive
49.42
Neutral
65.97
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 33.43, equal to the 50-day MA of 33.13, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.97 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
Performance Comparison
WDEF
WisdomTree Europe Defense Fund
33.07
2.59
8.50%
SHEH
Shell plc ADRhedged
―
―
―
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
―
―
―
HSBH
HSBC 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.
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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