CZAR vs. NATO

Last updated Jun 24, 2026

CZAR (Themes Natural Monopoly ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - CZAR is a Large Cap Blend Equities fund tracking the Solactive Natural Monopoly Index - Benchmark TR Gross, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Over the past year, CZAR returned 0.92% vs 17.37% for NATO. At a 0.47 correlation, their price movements are largely independent. Both charge a 0.35% expense ratio.

Performance

CZAR vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Natural Monopoly ETF (CZAR) 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, CZAR achieves a -3.66% return, which is significantly lower than NATO's 4.58% return.

CZAR

• 1D: -0.36%
• 1M: -3.86%
• YTD: -3.66%
• 6M: -3.68%
• 1Y: 0.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: -0.10%
• 1M: 1.72%
• YTD: 4.58%
• 6M: 4.25%
• 1Y: 17.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CZAR vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CZAR Themes Natural Monopoly ETF	-3.66%	13.32%	-2.02%
NATO Themes Transatlantic Defense ETF	4.58%	50.95%	0.51%

Correlation

The correlation between CZAR and NATO is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.47

Return for Risk

CZAR vs. NATO — Risk / Return Rank

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

CZAR

CZAR Risk / Return Rank: 10
CZAR Sharpe Ratio Rank: 10
CZAR Sortino Ratio Rank: 9
CZAR Omega Ratio Rank: 9
CZAR Calmar Ratio Rank: 10
CZAR Martin Ratio Rank: 10

NATO

NATO Risk / Return Rank: 23
NATO Sharpe Ratio Rank: 24
NATO Sortino Ratio Rank: 25
NATO Omega Ratio Rank: 23
NATO Calmar Ratio Rank: 24
NATO Martin Ratio Rank: 22

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.

CZAR vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Natural Monopoly ETF (CZAR) 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.

	CZAR	NATO	Difference
Sharpe ratio: Return per unit of total volatility	0.08	0.81	-0.74
Sortino ratio: Return per unit of downside risk	0.19	1.31	-1.12
Omega ratio: Gain probability vs. loss probability	1.02	1.15	-0.13
Calmar ratio: Return relative to maximum drawdown	0.10	1.09	-0.99
Martin ratio: Return relative to average drawdown	0.29	2.65	-2.36

CZAR vs. NATO - Sharpe Ratio Comparison

The current CZAR Sharpe Ratio is 0.08, which is lower than the NATO Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of CZAR 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

CZAR vs. NATO - Drawdown Comparison

The maximum CZAR drawdown since its inception was -13.38%, smaller than the maximum NATO drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for CZAR and NATO.

Drawdown Indicators

	CZAR	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-13.38%	-15.99%	+2.61%
Max Drawdown (1Y) Largest decline over 1 year	-9.54%	-15.99%	+6.45%
Current Drawdown Current decline from peak	-6.32%	-9.55%	+3.23%
Average Drawdown Average peak-to-trough decline	-2.23%	-3.89%	+1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.23%	6.57%	-3.34%

Volatility

CZAR vs. NATO - Volatility Comparison

The current volatility for Themes Natural Monopoly ETF (CZAR) is 2.88%, while Themes Transatlantic Defense ETF (NATO) has a volatility of 7.57%. This indicates that CZAR experiences smaller price fluctuations and is considered to be less risky than NATO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CZAR	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.88%	7.57%	-4.69%
Volatility (6M) Calculated over the trailing 6-month period	9.96%	18.35%	-8.39%
Volatility (1Y) Calculated over the trailing 1-year period	12.13%	21.46%	-9.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.98%	22.72%	-7.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.98%	22.72%	-7.74%

CZAR vs. NATO - Expense Ratio Comparison

Both CZAR and NATO have an expense ratio of 0.35%.

Dividends

CZAR vs. NATO - Dividend Comparison

CZAR's dividend yield for the trailing twelve months is around 1.53%, more than NATO's 0.43% yield.

Position	TTM	2025	2024
CZAR Themes Natural Monopoly ETF	1.53%	1.47%	0.94%
NATO Themes Transatlantic Defense ETF	0.43%	0.45%	0.08%

Frequently Asked Questions

Can I hold both CZAR and NATO in my portfolio?

CZAR and NATO have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CZAR or NATO?

NATO has higher volatility (7.57%) compared to CZAR (2.88%). In terms of maximum drawdown, CZAR dropped -13.38% vs NATO's -15.99%.

Which ETF is better, CZAR or NATO?

On 1-year performance, NATO leads with 17.37% vs 0.92% for CZAR. Both ETFs have the same 0.35% expense ratio. On volatility, CZAR has been the lower-risk option at 2.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CZAR or NATO?

Over the 1-year period, NATO has performed better with a 17.37% return vs 0.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CZAR or NATO?

CZAR and NATO have the same expense ratio: 0.35% per year.

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

CZAR has the higher dividend yield at 1.53%, compared with 0.43% for NATO.

What is the main difference between CZAR and NATO?

CZAR is categorized as Large Cap Blend Equities, while NATO is Aerospace & Defense. CZAR tracks Solactive Natural Monopoly Index - Benchmark TR Gross, while NATO tracks Solactive Transatlantic Aerospace and Defense Index.

Which has better risk-adjusted returns?

NATO currently has the higher Sharpe Ratio (0.81 vs 0.08), 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.