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GDFN - ETF AI Analysis

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GDFN

Tema International Defense Innovation ETF (GDFN)

Rating:57Neutral
Price Target:
GDFN, the Tema International Defense Innovation ETF, has a solid but not top-tier rating, mainly because many of its key holdings combine strong business performance with some valuation and technical risks. Higher-quality positions like Elbit Systems, Saab, Dassault Aviation, and Indra Sistemas support the fund’s rating through robust financial results, healthy order backlogs, and generally positive long-term outlooks, while names such as QinetiQ and Chemring add some drag due to bearish price trends, valuation concerns, and operational or cash flow challenges. The main risk factor is the fund’s concentration in defense-related companies that often look overvalued and show short-term bearish momentum, which can increase volatility and downside risk if market sentiment turns.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the past month, three months, and year to date, indicating solid recent momentum.
Top Holdings Performing Well
Many of the largest positions, such as Avio, Saab, Elbit Systems, and Rocket Lab, have delivered strong year-to-date performance that supports the fund’s returns.
Global Defense Exposure
Holdings spread across the U.S., U.K., Germany, France, Italy, Sweden, Israel, and Spain provide diversified exposure to international defense and aerospace companies.
Negative Factors
High Industry Concentration
With most assets in industrials and a smaller slice in technology, the fund is heavily tied to the defense and aerospace cycle, which can be volatile.
Relatively 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.
Small Asset Base
The ETF manages a relatively small amount of assets, which can sometimes lead to wider trading spreads and less liquidity for investors.

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

GDFN Summary

GDFN is the Tema International Defense Innovation ETF, an actively managed fund focused on aerospace and defense companies outside North America. It invests mainly in industrial and defense firms that may benefit from rising global defense spending and new military technologies. Well-known holdings include BAE Systems in the UK and Rocket Lab USA. An investor might choose this ETF to seek long-term growth and add international defense exposure that’s different from typical U.S.-focused funds. However, it is concentrated in the defense sector, so its value can swing sharply with changes in defense budgets, geopolitics, and market sentiment.
How much will it cost me?The Tema International Defense Innovation ETF (GDFN) has an expense ratio of 0.68%, meaning you’ll pay $6.80 per year for every $1,000 invested. This is higher than the average for ETFs because it is actively managed, focusing on a specialized portfolio of global aerospace and defense companies. Active management typically involves higher costs due to the research and expertise required to select investments.
What would affect this ETF?The ETF's focus on innovative aerospace and defense companies outside North America positions it to benefit from rising global defense spending driven by geopolitical tensions and technological advancements. However, it could face challenges from regulatory changes, economic slowdowns in key international markets, or reduced government budgets for defense in certain regions.

GDFN Top 10 Holdings

GDFN is essentially a bet on non‑U.S. defense champions, with Europe’s aerospace and defense names in the pilot’s seat. Elbit Systems is one of the main engines, rising on strong results even if its price looks a bit stretched. BAE Systems, Saab, and Leonardo are also pulling their weight, showing steady to rising trends despite some technical wobble. On the flip side, Dassault Aviation and Indra look more mixed lately, occasionally losing altitude. Overall, this is a tightly focused industrials play, not a broad global stock basket.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Elbit Systems6.60%$165.51K₪131.40B145.76%
73
Outperform
6.17%$154.76K
BAE Systems4.68%$117.39K£66.60B50.45%
61
Neutral
Saab AB4.56%$114.36Kkr336.72B55.86%
70
Outperform
Leonardo Spa4.50%$112.79K€32.93B37.50%
60
Neutral
Dassault Aviation4.36%$109.39K€25.51B16.26%
71
Outperform
Chemring3.95%$99.21K£1.48B51.31%
63
Neutral
Thales3.92%$98.27K€54.44B10.69%
73
Outperform
QinetiQ3.83%$96.08K£2.48B28.93%
58
Neutral
Babcock International3.76%$94.26K£6.12B79.52%
67
Neutral

GDFN Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
26.94
Negative
100DMA
25.56
Positive
200DMA
Market Momentum
MACD
-0.30
Negative
RSI
49.31
Neutral
STOCH
95.66
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For GDFN, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 26.42, equal to the 50-day MA of 26.94, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 95.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDFN.

GDFN Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.62M0.68%
57
Neutral
$96.30M0.50%
72
Outperform
$95.74M0.65%
68
Neutral
$90.12M1.00%
68
Neutral
$89.01M0.50%
57
Neutral
$87.68M0.75%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GDFN
Tema International Defense Innovation ETF
26.34
0.66
2.57%
FDCF
Fidelity Disruptive Communications ETF
TCAI
Tortoise AI Infrastructure ETF
FFND
Future Fund Active ETF
CSNR
Cohen & Steers Natural Resources Active ETF
AIFD
TCW Artificial Intelligence 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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