Themes Transatlantic Defense ETF (NATO) belongs to the Aerospace & Defense category. Below you'll find alternative ETFs from the same category, ranked by key criteria, plus funds that investors commonly compare with NATO. Use the tables to find lower-cost options, better risk-adjusted returns, or a closer substitute for your current allocation.
Cheapest Alternatives to NATO
NATO charges 0.35% annually. No ETFs in the Aerospace & Defense category have lower expense ratios; the lowest-cost alternatives shown here go as low as 0.35%.
| Symbol | Name | Expense Ratio | AUM | Inception | |
|---|---|---|---|---|---|
| Xtrackers Europe Defense Technologies ETF | 0.35% | 4.28M | Feb 2026 | NATO vs XDEF | |
| SPDR S&P Aerospace & Defense ETF | 0.35% | 7.23B | Sep 2011 | NATO vs XAR | |
| iShares U.S. Aerospace & Defense ETF | 0.38% | 14.21B | May 2006 | NATO vs ITA | |
| WisdomTree Global Defense Fund | 0.45% | 5.54M | Sep 2025 | NATO vs WDGF | |
| WisdomTree Asia Defense Fund | 0.45% | 24.36M | Sep 2025 | NATO vs WDAF |
Best Risk-Adjusted Alternatives to NATO
NATO has a PortfoliosLab risk / return rank of 23. There are 8 ETFs in the Aerospace & Defense category with higher risk-adjusted ranks, going as high as 57.
| Symbol | Name | Risk / Return Rank | AUM | Inception | |
|---|---|---|---|---|---|
| Gabelli Commercial Aerospace & Defense ETF | 57 | 24.90M | Jan 2023 | NATO vs GCAD | |
| Procure Space ETF | 54 | 1.12B | Apr 2019 | NATO vs UFO | |
| ARK Space Exploration & Innovation ETF | 40 | 717.30M | Mar 2021 | NATO vs ARKX | |
| SPDR S&P Aerospace & Defense ETF | 40 | 7.23B | Sep 2011 | NATO vs XAR | |
| Pacer Solactive Whitney Future of Warfare ETF | 39 | 15.15M | Dec 2024 | NATO vs FOWF |
Top Performing NATO Alternatives (YTD)
NATO is at 4.58% YTD. There are 10 ETFs in the Aerospace & Defense category with higher YTD returns, going as high as 24.53%.
| Symbol | Name | YTD Return | AUM | Inception | |
|---|---|---|---|---|---|
| Procure Space ETF | 24.53% | 1.12B | Apr 2019 | NATO vs UFO | |
| Gabelli Commercial Aerospace & Defense ETF | 17.90% | 24.90M | Jan 2023 | NATO vs GCAD | |
| Defiance Drone & Modern Warfare ETF | 16.35% | 173.78M | Sep 2025 | NATO vs JEDI | |
| Direxion Daily Aerospace & Defense Bull 3X Shares | 15.64% | 427.18M | May 2017 | NATO vs DFEN | |
| SPDR S&P Aerospace & Defense ETF | 14.20% | 7.23B | Sep 2011 | NATO vs XAR |
Lowest Volatility Alternatives to NATO
NATO has 21.46% 1-year volatility. There are 3 ETFs in the Aerospace & Defense category with lower 1-year volatility, going as low as 14.45%.
| Symbol | Name | Volatility 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Pacer Solactive Whitney Future of Warfare ETF | 14.45% | 15.15M | Dec 2024 | NATO vs FOWF | |
| Invesco Aerospace & Defense ETF | 20.15% | 8.26B | Oct 2005 | NATO vs PPA | |
| Gabelli Commercial Aerospace & Defense ETF | 20.36% | 24.90M | Jan 2023 | NATO vs GCAD | |
| iShares U.S. Aerospace & Defense ETF | 21.90% | 14.21B | May 2006 | NATO vs ITA | |
| iShares Defense Industrials Active ETF | 22.10% | 4.08B | May 2025 | NATO vs IDEF |
Lowest Drawdown Alternatives to NATO
NATO has a 1-year max drawdown of -15.99%. There are 5 ETFs in the Aerospace & Defense category with shallower 1-year drawdowns, going as shallow as -10.08%.
| Symbol | Name | Max Drawdown 1Y | AUM | Inception | |
|---|---|---|---|---|---|
| Pacer Solactive Whitney Future of Warfare ETF | -10.08% | 15.15M | Dec 2024 | NATO vs FOWF | |
| Invesco Aerospace & Defense ETF | -13.71% | 8.26B | Oct 2005 | NATO vs PPA | |
| iShares Defense Industrials Active ETF | -14.78% | 4.08B | May 2025 | NATO vs IDEF | |
| Gabelli Commercial Aerospace & Defense ETF | -14.96% | 24.90M | Jan 2023 | NATO vs GCAD | |
| iShares U.S. Aerospace & Defense ETF | -15.82% | 14.21B | May 2006 | NATO vs ITA |
Other ETFs from Themes
The 10 most viewed Themes ETFs shown here include GSIB, URAN, BOTT and span 10 categories. AUM among these funds goes as high as $61M.
| Symbol | Name | Category | Risk / Return Rank | YTD Return | AUM | Inception | |
|---|---|---|---|---|---|---|---|
| Themes Global Systemically Important Banks ETF | Financials Equities | 80 | 16.30% | 24.99M | Dec 2023 | NATO vs GSIB | |
| Themes Uranium & Nuclear ETF | Uranium, Alternative Energy Equities | 13 | -3.44% | — | Sep 2024 | NATO vs URAN | |
| Themes Humanoid Robotics ETF | Robotics, Technology Equities | 48 | 14.95% | 61.27M | Apr 2024 | NATO vs BOTT | |
| Themes Gold Miners ETF | Gold, Precious Metals | 25 | -13.29% | 28.41M | Dec 2023 | NATO vs AUMI | |
| Themes Silver Miners ETF | Silver, Precious Metals | 45 | -4.46% | 13.36M | May 2024 | NATO vs AGMI | |
| Themes Generative Artificial Intelligence ETF | Technology Equities | 16 | -2.18% | 34.96M | Dec 2023 | NATO vs WISE | |
| Themes Cybersecurity ETF | Technology Equities | 19 | 24.10% | 4.61M | Dec 2023 | NATO vs SPAM | |
| Themes US Small Cap Cash Flow Champions ETF | Small Cap Value Equities | 72 | 17.06% | 3.04M | Dec 2023 | NATO vs SMCF | |
| Themes Cloud Computing ETF | Technology Equities | 6 | -8.39% | 2.49M | Dec 2023 | NATO vs CLOD | |
| Themes Natural Monopoly ETF | Large Cap Blend Equities | 10 | -3.66% | 1.58M | Dec 2023 | NATO vs CZAR |
Often Compared With NATO
Investors most often compare NATO with EUAD, SHLD, NATO.L. These 20 comparison targets span 9 categories, based on PortfoliosLab usage data.
Compare NATO with Any Fund or Stock
Compare NATO with any ETF, mutual fund, or stock using PortfoliosLab's comparison tool.
Pair NATO with funds that move differently
Themes Transatlantic Defense ETF alternatives help with substitution. Diversifiers are the next step when you want funds with lower historical correlation to NATO.
Explore NATO Diversifiers