DRNZ vs. NATO

Last updated Jun 5, 2026

DRNZ (REX Drone ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds - DRNZ tracks the VettaFi Drone Index while NATO tracks the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. A 0.61 correlation means they provide meaningful diversification when combined. DRNZ charges 0.65%/yr vs 0.35%/yr for NATO.

Performance

DRNZ vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in REX Drone ETF (DRNZ) 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, DRNZ achieves a 27.64% return, which is significantly higher than NATO's 3.53% return.

DRNZ

• 1D: 2.30%
• 1M: 9.00%
• YTD: 27.64%
• 6M: 32.11%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: 2.10%
• 1M: 3.55%
• YTD: 3.53%
• 6M: 8.84%
• 1Y: 15.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DRNZ vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
DRNZ REX Drone ETF	27.64%	-10.89%
NATO Themes Transatlantic Defense ETF	3.53%	-1.10%

Correlation

The correlation between DRNZ and NATO is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 30, 2025	0.61

Return for Risk

DRNZ vs. NATO — Risk / Return Rank

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

NATO

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

DRNZ vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for REX Drone ETF (DRNZ) 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.

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

Sharpe Ratios by Period

	DRNZ	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.75	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	1.41	-0.92

Drawdowns

DRNZ vs. NATO - Drawdown Comparison

The maximum DRNZ drawdown since its inception was -24.52%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for DRNZ and NATO.

Drawdown Indicators

	DRNZ	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-24.52%	-15.99%	-8.53%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-5.32%	-10.46%	+5.14%
Average Drawdown Average peak-to-trough decline	-11.08%	-3.73%	-7.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	6.20%	—

Volatility

Volatility by Period

	DRNZ	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	8.20%	—
Volatility (6M) Calculated over the trailing 6-month period	—	17.74%	—
Volatility (1Y) Calculated over the trailing 1-year period	50.73%	20.80%	+29.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	50.73%	22.64%	+28.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	50.73%	22.64%	+28.09%

DRNZ vs. NATO - Expense Ratio Comparison

DRNZ has a 0.65% expense ratio, which is higher than NATO's 0.35% expense ratio.

Dividends

DRNZ vs. NATO - Dividend Comparison

DRNZ has not paid dividends to shareholders, while NATO's dividend yield for the trailing twelve months is around 0.44%.

Position	TTM	2025	2024
DRNZ REX Drone ETF	0.00%	0.00%	0.00%
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%

Frequently Asked Questions

Can I hold both DRNZ and NATO in my portfolio?

DRNZ and NATO have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, DRNZ 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, DRNZ or NATO?

NATO is cheaper with a 0.35% expense ratio, compared with 0.65% for DRNZ.

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

NATO has the higher dividend yield at 0.44%, compared with 0.00% for DRNZ.

What is the main difference between DRNZ and NATO?

DRNZ tracks VettaFi Drone Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. They also come from different issuers: REX and Themes. Their fees differ too: 0.65% for DRNZ and 0.35% for NATO.