MISL - ETF AI Analysis
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First Trust Indxx Aerospace & Defense ETF (MISL)
MISL, the First Trust Indxx Aerospace & Defense ETF, has a solid overall rating driven mainly by strong, well-established defense and aerospace names like General Dynamics, Northrop Grumman, RTX, GE Aerospace, and Lockheed Martin, which benefit from robust backlogs, positive earnings, and strategic growth initiatives. However, weaker areas such as Boeing’s ongoing financial and operational challenges, along with valuation concerns across several holdings, and the fund’s heavy concentration in the aerospace and defense sector, add risk and help explain why the rating is not higher.
MISL vs. SPDR S&P 500 ETF (SPY)
- AUM
- 691.98M
- Region
- North America
- Expense Ratio
- 0.65%
- Beta
- 1.04
- Issuer
- First Trust
- Inception Date
- Oct 25, 2022
- Dividend Yield
- 0.39%
- Asset Class
- Equity
- Index Tracked
- Indxx US Aerospace & Defense Index - Benchmark TR Gross
MISL Summary
MISL is an ETF that focuses on the aerospace and defense industry, following the Indxx US Aerospace & Defense Index. It holds a mix of well-known companies like Boeing and Lockheed Martin, along with other firms involved in aviation, space technology, and defense systems. Investors might consider MISL if they want targeted exposure to a sector tied to global security and long-term innovation, rather than owning individual stocks. However, this fund is concentrated in one industry, so its value can rise or fall sharply with changes in defense spending, government policies, or market sentiment toward this sector.
How much will it cost me?
This ETF has an expense ratio of 0.65%, which means you’ll pay about $6.50 per year for every $1,000 invested. That’s higher than the average ETF because it’s a specialized, sector-focused fund that requires more research and management than a broad, low-cost index fund.
What would affect this ETF?
MISL could benefit from increased government defense spending, growing demand for air travel and space exploration, and continued innovation from major U.S. aerospace and technology names like Boeing, RTX, SpaceX, and Palantir. On the downside, cuts to defense budgets, safety or regulatory issues affecting aerospace companies, higher interest rates that pressure industrial and tech stocks, or a slowdown in the U.S. economy could weigh on the ETF’s future performance.
MISL Top 10 Holdings
MISL is a pure play on U.S. aerospace and defense, with most of its firepower concentrated in industrial heavyweights and a dash of defense tech. Lockheed Martin and Northrop Grumman have been rising, acting like steady engines for the fund, while Palantir’s strong, AI-driven momentum adds a high-growth twist. On the other side, Boeing is clearly lagging, and GE Aerospace and SpaceX have shown more mixed, stop-and-go performance. Overall, the ETF leans heavily into defense contractors, with U.S.-centric exposure and a few tech names spicing up returns.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 RTX | RTX | 8.62% | $58.07M | $269.62B | 12.61% | 74Outperform |
 GE | GE Aerospace | 7.86% | $52.93M | $311.87B | -2.88% | 72Outperform |
 PLTR | Palantir Technologies | 7.07% | $47.60M | $442.43B | -5.37% | 74Outperform |
 BA | Boeing | 7.23% | $48.71M | $135.94B | -14.26% | 54Neutral |
 SPCX | SpaceX | 6.65% | $44.79M | $1.83T | -16.30% | ―― |
 LMT | Lockheed Martin | 5.02% | $33.78M | $147.14B | 30.06% | 70Outperform |
 LHX | L3Harris Technologies | 4.70% | $31.66M | $51.69B | -6.18% | 70Neutral |
 NOC | Northrop Grumman | 4.65% | $31.34M | $79.21B | -3.64% | 76Outperform |
 GD | General Dynamics | 4.51% | $30.40M | $100.81B | 8.10% | 80Outperform |
 TDG | Transdigm Group | 4.15% | $27.97M | $63.39B | -12.20% | 69Neutral |
MISL Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MISL, the sentiment is Negative. The current price of 41.54 is below the 20-day moving average (MA) of 41.59, below the 50-day MA of 42.49, and below the 200-day MA of 45.49, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 79.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MISL.
MISL Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| MISL | $41.54 | $44.00(5.92% Upside) | $691.98M | 0.65% | 61Neutral |
 RSPN | $60.55 | $71.11(17.43% Upside) | $853.52M | 0.40% | 70Outperform |
 FXR | $86.96 | $103.77(19.33% Upside) | $710.60M | 0.60% | 69Neutral |
 PRN | $193.49 | $232.90(20.37% Upside) | $310.88M | 0.60% | 68Neutral |
 PKB | $89.67 | $113.17(26.21% Upside) | $261.75M | 0.57% | 70Outperform |
 WELD | $49.93 | $65.90(31.98% Upside) | $252.50M | 0.75% | 74Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MISL | First Trust Indxx Aerospace & Defense ETF | 41.54 | -1.14 | -2.67% | |
| RSPN | Invesco S&P 500 Equal Weight Industrials ETF | 60.55 | 5.47 | 9.94% | |
| FXR | First Trust Industrials/Producer Durables AlphaDEX Fund | 86.96 | 10.00 | 12.99% | |
| PRN | Invesco DWA Industrials Momentum ETF | 193.49 | 9.79 | 5.33% | |
| PKB | Invesco Dynamic Building & Construction ETF | 89.67 | -5.79 | -6.06% | |
| WELD | Tema U.S. Manufacturing & Reshoring ETF | 49.93 | 6.25 | 14.30% |
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.