ARKX vs. NATO

Last updated Apr 2, 2026

Compare and contrast key facts about ARK Space Exploration & Innovation ETF (ARKX) and Themes Transatlantic Defense ETF (NATO).

ARKX and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ARKX is an actively managed fund by ARK. It was launched on Mar 30, 2021. NATO is a passively managed fund by Themes that tracks the performance of the Solactive Transatlantic Aerospace and Defense Index. It was launched on Oct 10, 2024.

Performance

ARKX vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Space Exploration & Innovation ETF (ARKX) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

ARKX vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ARKX ARK Space Exploration & Innovation ETF	3.21%	48.46%	17.73%
NATO Themes Transatlantic Defense ETF	4.74%	50.95%	0.35%

Returns By Period

In the year-to-date period, ARKX achieves a 3.21% return, which is significantly lower than NATO's 4.74% return.

ARKX

• 1D: 1.91%
• 1M: -7.49%
• YTD: 3.21%
• 6M: 3.53%
• 1Y: 68.32%
• 3Y*: 28.79%
• 5Y*: 7.42%
• 10Y*: —

NATO

• 1D: 3.93%
• 1M: -9.41%
• YTD: 4.74%
• 6M: 2.91%
• 1Y: 38.60%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARKX vs. NATO - Expense Ratio Comparison

ARKX has a 0.75% expense ratio, which is higher than NATO's 0.35% expense ratio.

ARKX

ARK Space Exploration & Innovation ETF

NATO

Themes Transatlantic Defense ETF

Return for Risk

ARKX vs. NATO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARKX

ARKX Risk / Return Rank: 86
ARKX Sharpe Ratio Rank: 89
ARKX Sortino Ratio Rank: 90
ARKX Omega Ratio Rank: 80
ARKX Calmar Ratio Rank: 92
ARKX Martin Ratio Rank: 82

NATO

NATO Risk / Return Rank: 83
NATO Sharpe Ratio Rank: 83
NATO Sortino Ratio Rank: 85
NATO Omega Ratio Rank: 81
NATO Calmar Ratio Rank: 83
NATO Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARKX vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Space Exploration & Innovation ETF (ARKX) and Themes Transatlantic Defense ETF (NATO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ARKX	NATO	Difference
Sharpe ratio Return per unit of total volatility	1.98	1.69	+0.29
Sortino ratio Return per unit of downside risk	2.60	2.34	+0.26
Omega ratio Gain probability vs. loss probability	1.32	1.33	-0.01
Calmar ratio Return relative to maximum drawdown	3.36	2.49	+0.87
Martin ratio Return relative to average drawdown	9.46	9.26	+0.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARKX vs. NATO - Sharpe Ratio Comparison

The current ARKX Sharpe Ratio is 1.98, which is comparable to the NATO Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of ARKX and NATO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ARKX	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	1.69	+0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	1.70	-1.40

Correlation

The correlation between ARKX and NATO is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

ARKX vs. NATO - Dividend Comparison

ARKX has not paid dividends to shareholders, while NATO's dividend yield for the trailing twelve months is around 0.43%.

	TTM	2025	2024
ARKX ARK Space Exploration & Innovation ETF	0.00%	0.00%	0.00%
NATO Themes Transatlantic Defense ETF	0.43%	0.45%	0.08%

Drawdowns

ARKX vs. NATO - Drawdown Comparison

The maximum ARKX drawdown since its inception was -43.61%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for ARKX and NATO.

Drawdown Indicators

	ARKX	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-43.61%	-15.99%	-27.62%
Max Drawdown (1Y) Largest decline over 1 year	-20.42%	-15.99%	-4.43%
Max Drawdown (5Y) Largest decline over 5 years	-43.61%	—	—
Current Drawdown Current decline from peak	-14.96%	-9.41%	-5.55%
Average Drawdown Average peak-to-trough decline	-20.49%	-2.88%	-17.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.25%	4.30%	+2.95%

Volatility

ARKX vs. NATO - Volatility Comparison

ARK Space Exploration & Innovation ETF (ARKX) has a higher volatility of 11.25% compared to Themes Transatlantic Defense ETF (NATO) at 9.42%. This indicates that ARKX's price experiences larger fluctuations and is considered to be riskier than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKX	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.25%	9.42%	+1.83%
Volatility (6M) Calculated over the trailing 6-month period	25.62%	15.43%	+10.19%
Volatility (1Y) Calculated over the trailing 1-year period	34.73%	22.94%	+11.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.20%	21.95%	+5.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.20%	21.95%	+5.25%