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DUTY - ETF AI Analysis

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DUTY

U.S. Defense ETF (DUTY)

Rating:69Neutral
Price Target:
DUTY, the U.S. Defense ETF, has a solid overall rating, suggesting it holds a generally attractive mix of defense and security companies with some risks to watch. Strong holdings like General Dynamics and Northrop Grumman support the fund with robust financial performance, large order backlogs, and positive earnings outlooks, while cybersecurity names such as Palo Alto Networks and Okta add growth potential through strong results and AI-focused strategies. However, weaker spots like Rocket Lab, which faces profitability and cash flow challenges, and several holdings with high valuations and some bearish or mixed technical signals, highlight the main risk: concentrated exposure to defense and security names that can be sensitive to government budgets, valuation swings, and market sentiment.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month and quarter, indicating positive recent momentum.
Leading Defense and Cybersecurity Holdings
Many of the top positions are well-known defense and cybersecurity companies that have delivered strong or steady performance, supporting the fund’s returns.
Focused Sector Exposure
Concentration in technology and industrials tied to defense provides targeted exposure for investors who want to benefit from this specific theme.
Negative Factors
High Sector Concentration
With almost all assets in technology and industrials, the fund is vulnerable if defense or cybersecurity-related sectors face a downturn.
Underperforming Top Holding
One of the larger positions, Palantir Technologies, has shown weak performance, which can drag on overall returns.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market or defense spending environment weakens.

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

DUTY Summary

DUTY is a U.S. Defense ETF that follows the Solactive U.S. Defense Index, focusing on American companies whose main business is defense and national security. It holds well-known names like Lockheed Martin and General Dynamics, along with cybersecurity firms such as Palantir and Palo Alto Networks. This ETF may appeal to investors who want targeted exposure to defense and related technology, potentially benefiting from long-term government defense spending and innovation. However, it is heavily concentrated in the defense and tech sectors, so its value can swing with changes in defense budgets, government contracts, and geopolitical events.
How much will it cost me?This ETF has an expense ratio of 0.45%, which means you’ll pay about $4.50 per year for every $1,000 you invest. That’s higher than the cost of many broad, passively managed index ETFs because this is a more specialized, theme-focused fund targeting U.S. defense companies.
What would affect this ETF?This ETF could benefit if U.S. defense spending rises, geopolitical tensions stay elevated, or the government increases investment in advanced technologies like cybersecurity and aerospace, which would likely support major holdings such as Lockheed Martin, Northrop Grumman, and Palantir. On the other hand, it could be hurt by cuts to the U.S. defense budget, changes in government priorities or regulations, reduced military conflicts, or a broad market downturn that hits industrial and technology stocks, especially given its concentrated focus on U.S. defense companies.

DUTY Top 10 Holdings

DUTY is flying on two engines: traditional defense giants and fast-growing cyber names. Lockheed Martin and General Dynamics have been steady climbers, giving the fund a solid backbone in classic aerospace and defense contracts, while Northrop Grumman and L3Harris have been more of a drag lately as their shares lose altitude. On the tech side, Fortinet, Okta, and CrowdStrike are rising, but Palantir has been stumbling, tempering the upside. Overall, this is a tightly focused U.S. play, heavily concentrated in defense and cybersecurity rather than broad global markets.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Lockheed Martin8.39%$233.66K$134.49B38.41%
70
Outperform
General Dynamics8.29%$230.85K$103.74B23.39%
80
Outperform
Northrop Grumman7.07%$196.82K$77.07B-7.50%
76
Outperform
L3Harris Technologies6.51%$181.36K$51.59B-0.43%
70
Neutral
Palantir Technologies6.37%$177.28K$295.01B-20.23%
74
Outperform
Palo Alto Networks5.06%$141.02K$270.44B91.94%
73
Outperform
Fortinet5.03%$140.06K$118.82B66.34%
71
Outperform
Okta4.83%$134.38K$24.67B49.20%
75
Outperform
CrowdStrike Holdings4.58%$127.43K$194.34B70.92%
67
Neutral
Teledyne Technologies4.29%$119.45K$30.39B20.36%
71
Outperform

DUTY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
25.85
Negative
100DMA
200DMA
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DUTY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 25.79, equal to the 50-day MA of 25.85, 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 DUTY.

DUTY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.78M0.45%
69
Neutral
$60.99M0.40%
71
Outperform
$44.87M0.10%
63
Neutral
$14.22M1.00%
70
Outperform
$6.50M0.65%
70
Neutral
$3.85M0.40%
63
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DUTY
U.S. Defense ETF
25.70
1.52
6.29%
MADE
iShares U.S. Manufacturing ETF
GCAD
Gabelli Commercial Aerospace & Defense ETF
HVAC
AdvisorShares HVAC and Industrials ETF
TSSD
Truth Social American Security & Defense ETF
FLDZ
RiverNorth Volition America Patriot ETF
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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