NATO - ETF AI Analysis
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Themes Transatlantic Defense ETF (NATO)
Rating:65Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Many of the largest positions, such as GE Aerospace, Rolls-Royce, Howmet Aerospace, and BAE Systems, have shown strong year-to-date performance, helping support the ETF’s overall returns.
Focused Transatlantic Defense Theme
The fund concentrates on major U.S. and European defense and aerospace companies, giving investors targeted exposure to a sector that can benefit from steady government defense spending.
Moderate Expense Ratio
The ETF’s expense ratio is moderate for a specialized thematic fund, so investors are not paying unusually high ongoing fees for this focused exposure.
Negative Factors
Heavy Concentration in Industrials
With the vast majority of assets in the industrials sector, the fund is highly exposed to sector-specific risks such as changes in defense budgets or aerospace demand.
Single-Stock and Country Concentration
A small group of large holdings and a strong tilt toward U.S. companies mean the ETF is less diversified and more vulnerable if these names or the U.S. market weaken.
Recent Short-Term Weakness
The ETF has experienced a recent one-month decline and includes a notable holding like Boeing that has shown weak year-to-date performance, which can add near-term volatility.
NATO vs. SPDR S&P 500 ETF (SPY)
AUM107.26M
RegionGlobal
Expense Ratio0.35%
Beta0.90
IssuerThemes
Inception DateOct 11, 2024
Dividend YieldN/A
Asset ClassEquity
Index TrackedSolactive Transatlantic Aerospace and Defense Index - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume23,078
30 Day Avg. Volume28,906
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
47.84Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering81
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NATO Summary
The Themes Transatlantic Defense ETF (ticker NATO) is a fund that tracks the Solactive Transatlantic Aerospace and Defense Index. It invests mainly in industrial companies that build planes, jets, missiles, and other defense systems across the U.S. and Europe. Well-known holdings include Boeing and Lockheed Martin, along with other major defense contractors. Someone might invest in this ETF to get diversified exposure to the defense industry, which often benefits from steady government spending and long-term contracts. A key risk is that it is heavily focused on defense and aerospace, so it can rise or fall sharply with changes in military budgets, politics, or global conflicts.
How much will it cost me?The Themes Transatlantic Defense ETF (NATO) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it is actively managed to focus on a specific niche, the Aerospace & Defense sector, requiring more research and specialized management.
What would affect this ETF?The NATO ETF could benefit from increased government defense spending and heightened geopolitical tensions, which often drive demand for advanced aerospace and defense technologies. However, it may face challenges from regulatory changes, budget cuts in defense spending, or economic slowdowns that could impact the industrial sector globally.
NATO Top 10 Holdings
NATO leans heavily into big transatlantic aerospace and defense names, with U.S. contractors like Lockheed Martin, RTX, and General Dynamics doing much of the heavy lifting as their shares keep rising on strong backlogs and steady government demand. Howmet Aerospace has been a standout, adding extra thrust to returns. On the flip side, Boeing has been dragging the fund, and Airbus has shown more mixed momentum, tempering gains. With most holdings in industrials and a blend of U.S. and European champions, this ETF is a focused bet on the defense and aerospace story across the Atlantic.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| GE Aerospace | 9.16% | $9.40M | $373.60B | 33.56% | 72 Outperform | |
| RTX | 8.43% | $8.66M | $290.06B | 37.66% | 74 Outperform | |
| Rolls-Royce Holdings | 7.22% | $7.42M | £122.32B | 39.31% | 71 Outperform | |
| Boeing | 7.10% | $7.29M | $170.83B | 5.01% | 54 Neutral | |
| Lockheed Martin | 5.80% | $5.96M | $134.49B | 38.37% | 70 Outperform | |
| Airbus Group SE | 5.23% | $5.37M | $183.57B | 21.05% | 68 Neutral | |
| Howmet Aerospace | 4.97% | $5.11M | $112.93B | 58.06% | 67 Neutral | |
| SAFRAN SA | 4.73% | $4.86M | €141.08B | 21.93% | 67 Neutral | |
| General Dynamics | 3.84% | $3.94M | $103.74B | 22.27% | 80 Outperform | |
| BAE Systems | 3.80% | $3.91M | £61.36B | 19.59% | 61 Neutral |
NATO Technical Analysis
Positive
―
Price Trends
40.43
Positive
39.93
Positive
39.83
Positive
Market Momentum
0.69
Negative
68.93
Neutral
95.66
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For NATO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 40.79, equal to the 50-day MA of 40.43, and equal to the 200-day MA of 39.83, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 68.93 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 NATO.
NATO Peer Comparison
Comparison Results
Performance Comparison
NATO
Themes Transatlantic Defense ETF
43.52
7.47
20.72%
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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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