PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan

HANetf Future of Defence UCITS ETF - Accumulating (NATO.L) Sharpe Ratio: 1.02

ETF · Currency in USD · Last updated Jun 4, 2026

The Future of Defence ETF (NATO) aims to provide exposure to companies benefiting from NATO and NATO+ allies' defense and cybersecurity spending. It capitalizes on rising global military expenditures and increased demand for both physical and cyber defense solutions amid geopolitical tensions and record defense spending levels.

NATO.L's Sharpe Ratio of 1.02 indicates that for each unit of volatility, it generates 1.02 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 4, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

NATO.L Sharpe Ratio Rank

NATO.L Sharpe Ratio Rank: 27.728
Below Average

NATO.L ranks above 27.7% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating below-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Returns may not adequately compensate for volatility taken
  • Consider smaller allocation given below-average risk-adjusted profile
  • Explore higher-ranked investments with better consistency
  • Assess whether the volatility profile aligns with your portfolio goals

NATO.L Sharpe Ratio Market Positioning

The chart shows NATO.L's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.88 or lower
  • Yellow zone (middle 50%): 0.88 to 2.43
  • Green zone (top 25%): 2.43 or higher
  • Top 1%: 7.90+
  • Median: 1.71 — half of all investments score higher

How it compares to other similar ETFs

The table compares HANetf Future of Defence UCITS ETF - Accumulating's Sharpe Ratio with other ETFs in the Aerospace & Defense category across multiple time periods, showing how NATO.L's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 4, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
DFNX.LVanEck Defense UCITS ETF3.41
IDFN.LInvesco Defence Innovation UCITS ETF Acc3.15
NATP.LHANetf Future of Defence UCITS ETF Acc GBP1.08
NATO.LHANetf Future of Defence UCITS ETF - Accumulating1.02
DFNG.LVanEck Defense ETF A USD Acc GBP0.68
DFNS.LVanEck Defense UCITS ETF0.63
WDEF.LWisdomTree Europe Defence UCITS ETF - EUR Acc EUR-0.07
DRON.LDrone UCITS ETF Acc—
DFEU.LiShares Europe Defence UCITS ETF EUR Accumulating—

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows NATO.L's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when NATO.L consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

Loading charts...

Sharpe Ratio Calculator

How does NATO.L fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

Analyze Your Portfolio