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IDEF - ETF AI Analysis

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IDEF

iShares Defense Industrials Active ETF (IDEF)

Rating:63Neutral
Price Target:
IDEF’s overall rating suggests it is a solid but not top-tier defense-focused ETF, supported by strong core holdings like General Dynamics and Northrop Grumman, which benefit from robust financial performance, healthy backlogs, and positive earnings outlooks. However, weaker names like Boeing, with significant financial challenges and program delays, and several holdings showing bearish technical trends and valuation concerns, weigh on the fund’s rating. The main risk is its concentration in defense and aerospace companies, which makes the ETF sensitive to sector-specific issues such as government spending, supply chain problems, and valuation pressures.
Positive Factors
Large Asset Base
The ETF manages a sizable pool of assets, which can support better liquidity and trading efficiency for investors.
Strong Year-to-Date Performance
The fund has delivered positive returns so far this year, indicating that its strategy has recently been working well.
Leading Defense and Tech Holdings
Several major positions like Lockheed Martin, General Dynamics, Rolls-Royce, Fortinet, BAE Systems, and Thales have shown strong gains, helping drive the ETF’s overall results.
Negative Factors
High Sector Concentration
With most of its assets in industrials and a focus on defense-related companies, the fund is heavily exposed to one main area of the market.
Mixed Performance Among Top Holdings
Some key positions such as Northrop Grumman and Palantir have been weak this year, which can drag on the ETF’s overall performance.
Above-Average Expense Ratio
The fund’s fee is on the higher side for an ETF, which can gradually reduce net returns for long-term investors.

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

IDEF Summary

The iShares Defense Industrials Active ETF (IDEF) is a fund focused on companies tied to the global defense theme, mainly in the industrials sector. It doesn’t track a fixed index; instead, managers actively pick stocks they believe will benefit from rising defense spending around the world. The ETF holds well-known names like Lockheed Martin and Boeing, along with other aerospace, engineering, and defense technology firms. Investors might consider IDEF for potential long-term growth and global diversification within the defense industry. A key risk is that it is heavily concentrated in defense and industrial stocks, so its price can swing with changes in defense budgets and geopolitical events.
How much will it cost me?This ETF has an expense ratio of 0.55%, which means you’ll pay about $5.50 per year for every $1,000 you invest. That’s higher than the average index ETF because this fund is actively managed, with managers choosing defense and industrial stocks rather than just tracking a simple market index.
What would affect this ETF?This ETF could benefit if global tensions stay elevated and governments keep increasing defense budgets, which would likely support major holdings like Lockheed Martin, RTX, and other industrial and technology defense contractors around the world. On the other hand, it could be hurt if peace efforts reduce military spending, if new regulations or political pressure limit arms sales, or if a global economic slowdown or higher interest rates make it harder for industrial companies to win new contracts and invest in growth.

IDEF Top 10 Holdings

IDEF is firmly hitched to the global defense and aerospace engine, with U.S. giants like RTX and General Dynamics providing steady lift as their backlogs and cash flows support the fund. Rolls-Royce has been a standout riser, adding extra thrust from the UK side, while Boeing’s recent rebound is helping repair earlier turbulence. On the tech flank, Fortinet is surging, giving the ETF a growth kicker, but laggards like Northrop Grumman and Palantir are dragging on returns. Overall, it’s a globally diversified but defense-heavy play with a few big names steering performance.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
RTX8.47%$358.28M$249.94B24.70%
74
Outperform
Lockheed Martin7.08%$299.47M$117.81B4.47%
70
Outperform
Rolls-Royce Holdings5.13%$217.04M£117.69B57.84%
71
Outperform
Boeing5.03%$212.58M$175.57B9.70%
54
Neutral
General Dynamics4.52%$191.16M$94.65B21.62%
80
Outperform
Northrop Grumman3.44%$145.56M$74.07B1.53%
76
Outperform
Fortinet3.29%$138.92M$106.04B40.95%
71
Outperform
BAE Systems2.85%$120.61M£54.17B-6.98%
61
Neutral
Airbus Group SE2.52%$106.70M$171.06B14.46%
68
Neutral
GE Aerospace2.51%$106.17M$373.14B43.30%
72
Outperform

IDEF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
32.61
Positive
100DMA
33.67
Negative
200DMA
32.73
Positive
Market Momentum
MACD
-0.24
Negative
RSI
57.03
Neutral
STOCH
61.26
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IDEF, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 31.99, equal to the 50-day MA of 32.61, and equal to the 200-day MA of 32.73, indicating a bullish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDEF.

IDEF Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.11B0.55%
63
Neutral
$6.74B0.75%
53
Neutral
$3.71B0.22%
66
Neutral
$3.09B0.65%
59
Neutral
$2.16B0.75%
64
Neutral
$1.04B1.11%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IDEF
iShares Defense Industrials Active ETF
32.99
5.02
17.95%
ARKK
Ark Innovation Etf
DFGR
Dimensional Global Real Estate ETF
FWD
AB Disruptors ETF
ARKQ
ARK Autonomous Technology & Robotics ETF
EIPI
FT Energy Income Partners Enhanced Income 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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