DRGN vs. NATO

Last updated Jun 25, 2026

DRGN (Themes China Generative Artificial Intelligence ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - DRGN is a Technology Equities fund tracking the BITA China Generative AI Select Index, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. At a 0.36 correlation, their price movements are largely independent. DRGN charges 0.39%/yr vs 0.35%/yr for NATO.

Performance

DRGN vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes China Generative Artificial Intelligence ETF (DRGN) 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, DRGN achieves a 11.80% return, which is significantly higher than NATO's 3.67% return.

DRGN

• 1D: -0.83%
• 1M: -2.41%
• YTD: 11.80%
• 6M: 13.27%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: -0.87%
• 1M: 0.84%
• YTD: 3.67%
• 6M: 3.00%
• 1Y: 16.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DRGN vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
DRGN Themes China Generative Artificial Intelligence ETF	11.80%	26.96%
NATO Themes Transatlantic Defense ETF	3.67%	5.28%

Correlation

The correlation between DRGN and NATO is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.36

Return for Risk

DRGN vs. NATO — Risk / Return Rank

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

DRGN

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

NATO

NATO Risk / Return Rank: 23
NATO Sharpe Ratio Rank: 23
NATO Sortino Ratio Rank: 24
NATO Omega Ratio Rank: 22
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.

DRGN vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes China Generative Artificial Intelligence ETF (DRGN) 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.

	DRGN	NATO	Difference
Sharpe ratio: Return per unit of total volatility	—	0.77	—
Sortino ratio: Return per unit of downside risk	—	1.25	—
Omega ratio: Gain probability vs. loss probability	—	1.15	—
Calmar ratio: Return relative to maximum drawdown	—	1.03	—
Martin ratio: Return relative to average drawdown	—	2.50	—

Drawdowns

DRGN vs. NATO - Drawdown Comparison

The maximum DRGN drawdown since its inception was -20.86%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for DRGN and NATO.

Drawdown Indicators

	DRGN	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-20.86%	-15.99%	-4.87%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-10.84%	-10.33%	-0.51%
Average Drawdown Average peak-to-trough decline	-8.07%	-3.91%	-4.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.60%	—

Volatility

Volatility by Period

	DRGN	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	7.55%	—
Volatility (6M) Calculated over the trailing 6-month period	—	18.24%	—
Volatility (1Y) Calculated over the trailing 1-year period	35.15%	21.47%	+13.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.15%	22.70%	+12.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.15%	22.70%	+12.45%

DRGN vs. NATO - Expense Ratio Comparison

DRGN has a 0.39% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

DRGN vs. NATO - Dividend Comparison

DRGN's dividend yield for the trailing twelve months is around 1.09%, more than NATO's 0.44% yield.

Position	TTM	2025	2024
DRGN Themes China Generative Artificial Intelligence ETF	1.09%	1.22%	0.00%
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%

Frequently Asked Questions

Can I hold both DRGN and NATO in my portfolio?

DRGN and NATO have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, DRGN or NATO?

On fees, NATO is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, DRGN or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.39% for DRGN.

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

DRGN has the higher dividend yield at 1.09%, compared with 0.44% for NATO.

What is the main difference between DRGN and NATO?

DRGN is categorized as Technology Equities, while NATO is Aerospace & Defense. DRGN tracks BITA China Generative AI Select Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. Their fees differ too: 0.39% for DRGN and 0.35% for NATO.