XDEF - ETF AI Analysis
Top Page
Xtrackers Europe Defense Technologies ETF (XDEF)
Rating:59Neutral
Price Target:―
Positive Factors
Leading Defense Names in Top Holdings
The fund’s largest positions include well-known European defense and aerospace companies, some of which have shown strong recent performance and help support the ETF’s returns.
Broad European Geographic Spread
Holdings are spread across several major European markets like the UK, France, Germany, and others, which helps reduce reliance on any single country’s economy or politics.
Focused Exposure to Defense and Industrials
Most of the portfolio is concentrated in defense-related industrial companies, giving investors targeted exposure to a specific theme rather than a broad, unfocused mix.
Negative Factors
Recent Weak Overall Performance
The ETF has delivered negative returns so far this year and over the past month, which may concern investors looking for steadier short-term results.
Mixed Results Among Top Holdings
Several of the largest positions have shown weak or negative performance recently, which can drag on the fund even though some other holdings are doing well.
High Concentration in a Single Sector Theme
With most assets tied to European defense and industrial companies, the fund is highly sensitive to changes in defense spending, regulation, and geopolitical events, increasing its risk compared with more diversified ETFs.
XDEF vs. SPDR S&P 500 ETF (SPY)
AUM4.09M
RegionEurope
Expense Ratio0.35%
Beta1.60
IssuerXtrackers
Inception DateFeb 19, 2026
Dividend Yield1.71%
Asset ClassEquity
Index TrackedSTOXX Europe Total Market Defence Space and Cybersecurity Innovation 50-25 Index - USD - Benchmark TR Net
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume608
30 Day Avg. Volume853
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
26.71Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering33
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XDEF Summary
XDEF is the Xtrackers Europe Defense Technologies ETF, which follows the STOXX Europe Total Market Defence Space and Cybersecurity Innovation Index. It invests in European companies linked to defense, aerospace, space, and cybersecurity, including well-known names like Rolls-Royce and Airbus. Someone might consider this ETF if they want targeted exposure to growing defense and security spending in Europe as a complement to a broader stock portfolio. A key risk is that it is heavily focused on one sector and region, so its price can swing with changes in government defense budgets, geopolitics, and overall market conditions.
How much will it cost me?This ETF has an expense ratio of 0.35%, which means you’ll pay about $3.50 per year for every $1,000 invested. That’s a bit higher than the cost of a typical broad, passively managed index ETF because this fund focuses on a specialized sector (European defense, space, and cybersecurity), which usually comes with slightly higher management and index licensing costs.
What would affect this ETF?Future performance of this Europe-focused defense ETF could benefit from higher NATO and government defense budgets, ongoing military modernization, and growing demand for aerospace, space, and cybersecurity services that support companies like Rolls-Royce, Airbus, and BAE Systems. On the other hand, cuts to defense spending, shifts in political attitudes toward arms and security, stricter export or industry regulations, and economic or currency weakness in Europe could hurt these industrial and defense-related holdings.
XDEF Top 10 Holdings
XDEF is essentially a Europe-focused bet on aerospace and defense, with a heavy tilt toward big contractors and engine makers. BAE Systems, Rolls-Royce, and Saab have been the main engines of performance, rising over the past few months as defense spending stays in the spotlight. Airbus and MTU Aero Engines are more mixed, with recent weakness and supply-chain issues acting like headwinds. Rheinmetall and Melrose are clearly lagging, dragging on returns. Overall, the fund is concentrated in European industrials, with little exposure beyond the region or outside the defense theme.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| BAE Systems | 8.12% | $327.89K | £55.09B | -6.47% | 61 Neutral | |
| SAFRAN SA | 8.02% | $323.89K | €132.75B | 4.44% | 67 Neutral | |
| Rolls-Royce Holdings | 7.90% | $319.16K | £115.75B | 20.84% | 71 Outperform | |
| Airbus Group SE | 7.86% | $317.54K | $166.87B | -10.94% | 68 Neutral | |
| Rheinmetall | 7.74% | $312.70K | €44.89B | -48.25% | 63 Neutral | |
| Melrose | 4.87% | $196.66K | £5.60B | -24.50% | 50 Neutral | |
| Saab AB | 4.84% | $195.38K | kr328.68B | 19.92% | 70 Outperform | |
| MTU Aero Engines | 4.79% | $193.44K | €18.89B | -9.46% | 76 Outperform | |
| ― | 4.60% | $185.92K | ― | ― | ― | |
| Thales | 4.55% | $183.89K | €45.75B | -14.08% | 73 Outperform |
XDEF Technical Analysis
Negative
―
Price Trends
22.42
Negative
22.00
Negative
Market Momentum
-0.54
Positive
30.05
Neutral
30.25
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XDEF, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 21.20, equal to the 50-day MA of 22.42, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 30.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XDEF.
XDEF Peer Comparison
Comparison Results
Performance Comparison
XDEF
Xtrackers Europe Defense Technologies ETF
20.35
-4.45
-17.94%
WDEF
WisdomTree Europe Defense Fund
―
―
―
ASMH
ASML Holding NV ADRhedged
―
―
―
HSBH
HSBC Holdings plc ADRhedged
―
―
―
ARMH
Arm Holdings PLC ADRhedged
―
―
―
SHEH
Shell 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: ―
Table of Contents