XDEF - ETF AI Analysis
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Xtrackers Europe Defense Technologies ETF (XDEF)
Rating:60Neutral
Price Target:―
Positive Factors
Leading Defense Names in Top Holdings
The ETF’s largest positions include several well-known defense and aerospace companies, some of which have shown strong gains this year and help support overall returns.
Broad European Defense Exposure
Holdings spread across major European markets like the UK, France, Germany, Italy, Sweden, and Spain provide regional diversification within the defense theme.
Focused Industrial Exposure
A large share of the portfolio is in industrial companies tied directly to defense and aerospace, which keeps the fund closely aligned with its stated investment theme.
Negative Factors
Weak Recent Overall Performance
The ETF has delivered negative results so far this year and over the last three months, showing that the strategy has struggled in the recent market environment.
Mixed Results Among Top Holdings
Several of the largest positions have lagged this year, which can drag on the fund’s performance even though a few holdings have done well.
High Concentration in Industrials
With nearly all assets tied to industrial and related companies, the fund is vulnerable if the defense and aerospace industry faces a downturn.
XDEF vs. SPDR S&P 500 ETF (SPY)
AUM4.48M
RegionEurope
Expense Ratio0.35%
Beta1.57
IssuerXtrackers
Inception DateFeb 19, 2026
Dividend Yield1.43%
Asset ClassEquity
Index TrackedSTOXX Europe Total Market Defence Space and Cybersecurity Innovation 50-25 Index - USD - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume1,143
30 Day Avg. Volume1,414
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
26.56Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering34
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XDEF Summary
Xtrackers Europe Defense Technologies ETF (XDEF) is a fund that follows the STOXX Europe Total Market Defence Space and Cybersecurity Innovation Index. It invests in European companies involved in defense, aerospace, space technology, and cybersecurity. Well-known holdings include Rolls-Royce Holdings and Airbus Group. Someone might consider this ETF to tap into long-term growth in military modernization, space infrastructure, and cyber defense, while also getting diversification across several European countries. A key risk is that it is heavily focused on the defense sector, so its value can swing with government budgets, geopolitical tensions, and overall market moves.
How much will it cost me?This ETF has an expense ratio of 0.35%, which means you’ll pay about $3.50 per year for every $1,000 invested. That’s a bit higher than the cost of a typical broad, passively managed index ETF because this fund focuses on a specialized sector (European defense, space, and cybersecurity), which usually comes with slightly higher management and index licensing costs.
What would affect this ETF?Future performance of this Europe-focused defense ETF could benefit from higher NATO and government defense budgets, ongoing military modernization, and growing demand for aerospace, space, and cybersecurity services that support companies like Rolls-Royce, Airbus, and BAE Systems. On the other hand, cuts to defense spending, shifts in political attitudes toward arms and security, stricter export or industry regulations, and economic or currency weakness in Europe could hurt these industrial and defense-related holdings.
XDEF Top 10 Holdings
XDEF is essentially a Europe-focused bet on aerospace and defense, with a heavy tilt toward big contractors and engine makers. Rolls-Royce, Safran, and BAE Systems have been steady to rising, helping power the fund, while Airbus and MTU Aero Engines are more mixed, occasionally losing altitude despite solid fundamentals. Rheinmetall and Melrose have been clear laggards lately, acting as a drag on returns. With most names tied to UK, French, German, and broader European defense budgets, the ETF’s story is tightly linked to Europe’s evolving security and spending landscape.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Rolls-Royce Holdings | 8.91% | $400.29K | £122.32B | 37.77% | 71 Outperform | |
| Airbus Group SE | 8.68% | $389.91K | $183.64B | 17.85% | 68 Neutral | |
| SAFRAN SA | 8.63% | $387.40K | €141.08B | 20.73% | 67 Neutral | |
| BAE Systems | 8.20% | $368.31K | £61.36B | 14.65% | 61 Neutral | |
| Rheinmetall | 7.04% | $316.10K | €53.19B | -33.24% | 63 Neutral | |
| MTU Aero Engines | 5.01% | $224.79K | €19.49B | -1.25% | 76 Outperform | |
| Saab AB | 4.73% | $212.59K | kr322.48B | 14.70% | 70 Outperform | |
| Thales | 4.38% | $196.63K | €50.54B | 6.54% | 73 Outperform | |
| Leonardo Spa | 4.34% | $195.07K | €31.70B | 19.90% | 60 Neutral | |
| Babcock International | 4.19% | $188.15K | £5.52B | 12.38% | 67 Neutral |
XDEF Technical Analysis
Positive
―
Price Trends
21.57
Positive
21.93
Positive
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XDEF, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 21.71, equal to the 50-day MA of 21.57, and equal to the 200-day MA of ―, 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 XDEF.
XDEF Peer Comparison
Comparison Results
Performance Comparison
XDEF
Xtrackers Europe Defense Technologies ETF
22.72
-2.11
-8.50%
WDEF
WisdomTree Europe Defense Fund
―
―
―
ASMH
ASML Holding NV ADRhedged
―
―
―
ARMH
Arm Holdings PLC ADRhedged
―
―
―
HSBH
HSBC Holdings plc ADRhedged
―
―
―
NVOH
Novo Nordisk A/S (B Shares) 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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