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WDEF - ETF AI Analysis

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WDEF

WisdomTree Europe Defense Fund (WDEF)

Rating:57Neutral
Price Target:
WDEF, the WisdomTree Europe Defense Fund, has a solid but not top-tier rating, reflecting a mix of strong underlying businesses and some notable risks. High-weight holdings like Thales, Saab, Rolls-Royce, Airbus, Safran, and HENSOLDT support the fund’s quality through strong financial performance, positive earnings commentary, and healthy order backlogs, though many also show signs of bearish technical trends or potentially rich valuations. The main risk is that several key holdings share similar issues—such as overvaluation signals, bearish momentum, and cash flow or leverage concerns—within the same defense and aerospace-focused region, which can amplify sector-specific and valuation-related volatility.
Positive Factors
Strong AUM Base
The fund manages a solid pool of assets, suggesting it has attracted meaningful investor interest and liquidity.
Leading Defense Names in Top Holdings
Several of the largest positions, such as BAE Systems, Saab, Leonardo, Rolls-Royce, Airbus, and SAFRAN, have shown strong or steady performance, helping support the ETF’s returns.
Broad European Country Diversification
Holdings spread across the UK, France, Germany, Italy, Sweden, Spain, the Netherlands, and some U.S. exposure help reduce the impact of problems in any single European market.
Negative Factors
Recent Weak Overall Performance
The ETF’s returns over the year to date and the last three months have been negative, signaling recent weakness in the strategy.
Heavy Concentration in a Few Defense Stocks
A small group of companies makes up a large share of the portfolio, which increases the risk if any of these key holdings run into trouble.
Moderately 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 instead of going to investors.

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

WDEF Summary

WDEF, the WisdomTree Europe Defense Fund, is an ETF that follows the WisdomTree Europe Defence Index, focusing on European aerospace and defense companies. It holds well-known names like BAE Systems and Airbus, along with other firms that earn at least 10% of their revenue from defense-related activities. Investors might consider WDEF if they want targeted exposure to Europe’s defense industry, which could benefit from rising defense budgets and long-term growth in military technology. However, this fund is concentrated in defense and industrial stocks, so its value can go up and down sharply with changes in geopolitics, government spending, and the broader stock market.
How much will it cost me?The WisdomTree Europe Defense Fund (WDEF) has an expense ratio of 0.45%, meaning you’ll pay $4.50 per year for every $1,000 invested. This is slightly higher than average because the fund is specialized and actively managed to focus on the European defense sector, which requires more research and strategy compared to passively managed funds. However, it provides targeted exposure to a unique and growing industry.
What would affect this ETF?The WisdomTree Europe Defense Fund (WDEF) could benefit from increased defense spending across Europe due to heightened geopolitical tensions and the growing demand for advanced military technology, which aligns with the fund's focus on aerospace and defense companies. However, potential risks include regulatory changes or budget cuts in defense spending, as well as economic slowdowns in Europe that could impact industrial growth and innovation within the sector.

WDEF Top 10 Holdings

WDEF is essentially a bet on Europe’s defense engine, with heavyweight names like BAE Systems and Thales providing steady, rising support at the core. Rolls-Royce and Safran have been climbing as well, giving the fund extra lift from the aerospace side. Saab and HENSOLDT add more punch, reflecting strong demand for advanced defense technology. The main drag comes from Rheinmetall, which has lost momentum recently and is holding back returns. Overall, this is a Europe-focused, industrial-heavy play tightly tied to the region’s defense and aerospace story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
BAE Systems10.47%$8.92M£59.40B1.25%
61
Neutral
Thales9.94%$8.46M€49.51B-6.70%
73
Outperform
Rheinmetall8.25%$7.03M€47.26B-46.92%
63
Neutral
Saab AB5.64%$4.80Mkr322.81B19.32%
70
Outperform
Leonardo Spa5.29%$4.50M€29.00B1.62%
60
Neutral
Rolls-Royce Holdings5.28%$4.50M£119.63B29.08%
71
Outperform
SAFRAN SA5.00%$4.26M€136.04B17.59%
67
Neutral
Airbus Group SE4.97%$4.23M$177.41B1.09%
68
Neutral
4.83%$4.11M
HENSOLDT AG4.38%$3.73M€8.98B-17.05%
68
Neutral

WDEF Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
30.18
Negative
100DMA
29.61
Negative
200DMA
30.73
Negative
Market Momentum
MACD
-0.52
Positive
RSI
38.72
Neutral
STOCH
59.92
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For WDEF, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 29.90, equal to the 50-day MA of 30.18, and equal to the 200-day MA of 30.73, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDEF.

WDEF Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$85.22M0.45%
57
Neutral
$4.81M0.19%
80
Outperform
$4.53M0.19%
68
Neutral
$4.38M0.35%
59
Neutral
$3.88M0.19%
71
Outperform
$3.33M0.19%
78
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WDEF
WisdomTree Europe Defense Fund
29.22
-2.96
-9.20%
ASMH
ASML Holding NV ADRhedged
ARMH
Arm Holdings PLC ADRhedged
XDEF
Xtrackers Europe Defense Technologies ETF
NVOH
Novo Nordisk A/S (B Shares) ADRhedged
HSBH
HSBC Holdings plc ADRhedged
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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