DFNS.L vs. AIAG.L

Last updated Jun 4, 2026

DFNS.L (VanEck Defense UCITS ETF) and AIAG.L (L&G Artificial Intelligence UCITS ETF) are both exchange-traded funds - DFNS.L is a Aerospace & Defense fund tracking the MarketVector™ Global Defense Industry Index, while AIAG.L is a Technology Equities fund tracking the MSCI World/Information Tech NR USD. Both are passively managed. Over the past 3 years, DFNS.L returned 42.95%/yr vs 38.26%/yr for AIAG.L. A 0.50 correlation means they provide meaningful diversification when combined. DFNS.L charges 0.55%/yr vs 0.49%/yr for AIAG.L.

Performance

DFNS.L vs. AIAG.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Defense UCITS ETF (DFNS.L) and L&G Artificial Intelligence UCITS ETF (AIAG.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

DFNS.L is traded in USD, while AIAG.L is traded in GBp. To make them comparable, the AIAG.L values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, DFNS.L achieves a 2.88% return, which is significantly lower than AIAG.L's 42.24% return.

DFNS.L

• 1D: -1.80%
• 1M: -5.10%
• YTD: 2.88%
• 6M: 8.71%
• 1Y: 15.78%
• 3Y*: 42.95%
• 5Y*: —
• 10Y*: —

AIAG.L

• 1D: -1.84%
• 1M: 25.25%
• YTD: 42.24%
• 6M: 41.30%
• 1Y: 79.66%
• 3Y*: 38.26%
• 5Y*: 18.10%
• 10Y*: —

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

DFNS.L vs. AIAG.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFNS.L VanEck Defense UCITS ETF	2.88%	68.21%	43.74%	25.73%
AIAG.L L&G Artificial Intelligence UCITS ETF	42.24%	30.60%	18.56%	34.28%

Correlation

The correlation between DFNS.L and AIAG.L is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (All Time) Calculated using the full available price history since Apr 6, 2023	0.50

The correlation between DFNS.L and AIAG.L has been stable across timeframes, ranging from 0.41 to 0.50 - a consistent structural relationship.

Return for Risk

DFNS.L vs. AIAG.L — Risk / Return Rank

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

DFNS.L

DFNS.L Risk / Return Rank: 19
DFNS.L Sharpe Ratio Rank: 19
DFNS.L Sortino Ratio Rank: 20
DFNS.L Omega Ratio Rank: 18
DFNS.L Calmar Ratio Rank: 19
DFNS.L Martin Ratio Rank: 19

AIAG.L

AIAG.L Risk / Return Rank: 82
AIAG.L Sharpe Ratio Rank: 91
AIAG.L Sortino Ratio Rank: 84
AIAG.L Omega Ratio Rank: 82
AIAG.L Calmar Ratio Rank: 86
AIAG.L Martin Ratio Rank: 69

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.

DFNS.L vs. AIAG.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Defense UCITS ETF (DFNS.L) and L&G Artificial Intelligence UCITS ETF (AIAG.L). 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.

	DFNS.L	AIAG.L	Difference
Sharpe ratio: Return per unit of total volatility	0.63	3.05	-2.42
Sortino ratio: Return per unit of downside risk	1.06	3.73	-2.66
Omega ratio: Gain probability vs. loss probability	1.12	1.48	-0.36
Calmar ratio: Return relative to maximum drawdown	0.84	4.74	-3.90
Martin ratio: Return relative to average drawdown	2.09	14.64	-12.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFNS.L vs. AIAG.L - Sharpe Ratio Comparison

The current DFNS.L Sharpe Ratio is 0.63, which is lower than the AIAG.L Sharpe Ratio of 3.05. The chart below compares the historical Sharpe Ratios of DFNS.L and AIAG.L, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFNS.L	AIAG.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.63	3.05	-2.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.01	0.78	+1.23

Drawdowns

DFNS.L vs. AIAG.L - Drawdown Comparison

The maximum DFNS.L drawdown since its inception was -18.72%, smaller than the maximum AIAG.L drawdown of -49.83%. Use the drawdown chart below to compare losses from any high point for DFNS.L and AIAG.L.

Drawdown Indicators

	DFNS.L	AIAG.L	Difference
Max Drawdown Largest peak-to-trough decline	-18.72%	-49.83%	+31.11%
Max Drawdown (1Y) Largest decline over 1 year	-18.72%	-16.72%	-2.00%
Max Drawdown (3Y) Largest decline over 3 years	-18.72%	-30.03%	+11.31%
Max Drawdown (5Y) Largest decline over 5 years	—	-49.83%	—
Current Drawdown Current decline from peak	-15.86%	-1.84%	-14.02%
Average Drawdown Average peak-to-trough decline	-3.39%	-14.44%	+11.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.50%	5.42%	+2.08%

Volatility

DFNS.L vs. AIAG.L - Volatility Comparison

The current volatility for VanEck Defense UCITS ETF (DFNS.L) is 8.07%, while L&G Artificial Intelligence UCITS ETF (AIAG.L) has a volatility of 10.02%. This indicates that DFNS.L experiences smaller price fluctuations and is considered to be less risky than AIAG.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNS.L	AIAG.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.07%	10.02%	-1.95%
Volatility (6M) Calculated over the trailing 6-month period	19.53%	19.87%	-0.34%
Volatility (1Y) Calculated over the trailing 1-year period	24.88%	26.03%	-1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.56%	28.21%	-6.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.56%	29.37%	-7.81%

DFNS.L vs. AIAG.L - Expense Ratio Comparison

DFNS.L has a 0.55% expense ratio, which is higher than AIAG.L's 0.49% expense ratio.

Dividends

DFNS.L vs. AIAG.L - Dividend Comparison

Neither DFNS.L nor AIAG.L has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both DFNS.L and AIAG.L in my portfolio?

DFNS.L and AIAG.L have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, DFNS.L or AIAG.L?

On fees, AIAG.L is cheaper at 0.49% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, DFNS.L or AIAG.L?

AIAG.L is cheaper with a 0.49% expense ratio, compared with 0.55% for DFNS.L.

What is the main difference between DFNS.L and AIAG.L?

DFNS.L is categorized as Aerospace & Defense, while AIAG.L is Technology Equities. DFNS.L tracks MarketVector™ Global Defense Industry Index, while AIAG.L tracks MSCI World/Information Tech NR USD. They also come from different issuers: VanEck and Legal & General. Their fees differ too: 0.55% for DFNS.L and 0.49% for AIAG.L.