ARKX vs. NATO

Last updated Aug 4, 2026

ARKX (ARK Space Exploration & Innovation ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds. ARKX is actively managed, while NATO is passively managed. Over the past year, ARKX returned 23.64% vs 19.00% for NATO. Their 0.64 correlation means they have sometimes moved together and sometimes differently. ARKX charges 0.75%/yr vs 0.35%/yr for NATO.

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.

Returns By Period

In the year-to-date period, ARKX achieves a 9.01% return, which is significantly lower than NATO's 11.23% return.

ARKX

• 1D: 3.24%
• 1M: -6.73%
• 6M: -0.25%
• YTD: 9.01%
• 1Y: 23.64%
• 3Y*: 28.12%
• 5Y*: 9.38%
• 10Y*: —
• ALL TIME*: 8.43%

NATO

• 1D: 2.40%
• 1M: 0.81%
• 6M: 1.90%
• YTD: 11.23%
• 1Y: 19.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 33.53%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ARKX ARK Space Exploration & Innovation ETF	$19.59M	$22.68M	$44.98M
NATO Themes Transatlantic Defense ETF	$882.24K	$720.46K	$1.15M

ARKX vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ARKX ARK Space Exploration & Innovation ETF	9.01%	48.46%	19.98%
NATO Themes Transatlantic Defense ETF	11.23%	50.95%	0.51%

Correlation

The correlation between ARKX and NATO is 0.72, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.72
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.64

The correlation between ARKX and NATO has been stable across timeframes, ranging from 0.64 to 0.72 - a consistent structural relationship.

Return for Risk

ARKX vs. NATO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ARKX

ARKX Risk / Return Rank: 30
ARKX Sharpe Ratio Rank: 29
ARKX Sortino Ratio Rank: 31
ARKX Omega Ratio Rank: 28
ARKX Calmar Ratio Rank: 33
ARKX Martin Ratio Rank: 29

NATO

NATO Risk / Return Rank: 33
NATO Sharpe Ratio Rank: 34
NATO Sortino Ratio Rank: 36
NATO Omega Ratio Rank: 33
NATO Calmar Ratio Rank: 34
NATO Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARKX	NATO	Difference
Sharpe ratio: Return per unit of total volatility	0.70	0.86	-0.17
Sortino ratio: Return per unit of downside risk	1.17	1.37	-0.20
Omega ratio: Gain probability vs. loss probability	1.13	1.16	-0.02
Calmar ratio: Return relative to maximum drawdown	1.09	1.19	-0.10
Martin ratio: Return relative to average drawdown	2.50	2.67	-0.17

ARKX vs. NATO - Sharpe Ratio Comparison

The current ARKX Sharpe Ratio is 0.70, which is comparable to the NATO Sharpe Ratio of 0.86. The chart below compares the historical Sharpe Ratios of ARKX and NATO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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	-21.78%	-15.99%	-5.79%
Max Drawdown (3Y) Largest decline over 3 years	-25.47%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-43.61%	—	—
Current Drawdown Current decline from peak	-16.30%	-3.80%	-12.50%
Average Drawdown Average peak-to-trough decline	-19.79%	-4.16%	-15.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.47%	7.13%	+2.34%

Volatility

ARKX vs. NATO - Volatility Comparison

ARK Space Exploration & Innovation ETF (ARKX) has a higher volatility of 9.02% compared to Themes Transatlantic Defense ETF (NATO) at 6.62%. 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	9.02%	6.62%	+2.40%
Volatility (6M) Calculated over the trailing 6-month period	26.02%	18.63%	+7.39%
Volatility (1Y) Calculated over the trailing 1-year period	34.05%	22.11%	+11.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.43%	22.67%	+5.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.78%	22.67%	+5.11%

ARKX vs. NATO - Expense Ratio Comparison

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

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 0.41%.

Position	TTM	2025	2024
ARKX ARK Space Exploration & Innovation ETF	0.00%	0.00%	0.00%
NATO Themes Transatlantic Defense ETF	0.41%	0.45%	0.08%

Frequently Asked Questions

Can I hold both ARKX and NATO in my portfolio?

ARKX and NATO have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARKX or NATO?

ARKX has higher volatility (9.02%) compared to NATO (6.62%). In terms of maximum drawdown, ARKX dropped -43.61% vs NATO's -15.99%.

Which ETF is better, ARKX or NATO?

On 1-year performance, ARKX leads with 23.64% vs 19.00% for NATO. On fees, NATO is cheaper at 0.35% per year. On volatility, NATO has been the lower-risk option at 6.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKX or NATO?

Over the 1-year period, ARKX has performed better with a 23.64% return vs 19.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKX or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.75% for ARKX.

Which ETF pays a higher dividend yield, ARKX or NATO?

NATO has the higher dividend yield at 0.41%, compared with 0.00% for ARKX.

What is the main difference between ARKX and NATO?

They also come from different issuers: ARK and Themes. Their fees differ too: 0.75% for ARKX and 0.35% for NATO.

Which has better risk-adjusted returns?

NATO currently has the higher Sharpe Ratio (0.86 vs 0.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.