GCAD vs. NATO

Last updated Jun 23, 2026

GCAD (Gabelli Commercial Aerospace & Defense ETF) and NATO (Themes Transatlantic Defense ETF) are both Aerospace & Defense funds. GCAD is actively managed, while NATO is passively managed. Over the past year, GCAD returned 39.72% vs 18.50% for NATO. Their correlation of 0.82 suggests significant overlap in exposure. GCAD charges 0.00%/yr vs 0.35%/yr for NATO.

Performance

GCAD vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Gabelli Commercial Aerospace & Defense ETF (GCAD) 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, GCAD achieves a 18.85% return, which is significantly higher than NATO's 4.69% return.

GCAD

• 1D: -1.15%
• 1M: 5.27%
• YTD: 18.85%
• 6M: 16.83%
• 1Y: 39.72%
• 3Y*: 34.53%
• 5Y*: —
• 10Y*: —

NATO

• 1D: -1.18%
• 1M: 1.83%
• YTD: 4.69%
• 6M: 4.49%
• 1Y: 18.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

GCAD vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
GCAD Gabelli Commercial Aerospace & Defense ETF	18.85%	39.28%	3.87%
NATO Themes Transatlantic Defense ETF	4.69%	50.95%	0.51%

Correlation

The correlation between GCAD and NATO is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.82

The correlation between GCAD and NATO has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

Return for Risk

GCAD vs. NATO — Risk / Return Rank

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

GCAD

GCAD Risk / Return Rank: 59
GCAD Sharpe Ratio Rank: 61
GCAD Sortino Ratio Rank: 66
GCAD Omega Ratio Rank: 58
GCAD Calmar Ratio Rank: 56
GCAD Martin Ratio Rank: 54

NATO

NATO Risk / Return Rank: 24
NATO Sharpe Ratio Rank: 25
NATO Sortino Ratio Rank: 26
NATO Omega Ratio Rank: 24
NATO Calmar Ratio Rank: 25
NATO Martin Ratio Rank: 23

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.

GCAD vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Gabelli Commercial Aerospace & Defense ETF (GCAD) 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.

	GCAD	NATO	Difference
Sharpe ratio: Return per unit of total volatility	1.96	0.87	+1.10
Sortino ratio: Return per unit of downside risk	2.92	1.38	+1.54
Omega ratio: Gain probability vs. loss probability	1.35	1.16	+0.18
Calmar ratio: Return relative to maximum drawdown	2.67	1.16	+1.50
Martin ratio: Return relative to average drawdown	9.12	2.83	+6.29

GCAD vs. NATO - Sharpe Ratio Comparison

The current GCAD Sharpe Ratio is 1.96, which is higher than the NATO Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of GCAD 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

GCAD vs. NATO - Drawdown Comparison

The maximum GCAD drawdown since its inception was -16.14%, roughly equal to the maximum NATO drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for GCAD and NATO.

Drawdown Indicators

	GCAD	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-16.14%	-15.99%	-0.15%
Max Drawdown (1Y) Largest decline over 1 year	-14.96%	-15.99%	+1.03%
Max Drawdown (3Y) Largest decline over 3 years	-16.14%	—	—
Current Drawdown Current decline from peak	-2.01%	-9.45%	+7.44%
Average Drawdown Average peak-to-trough decline	-3.01%	-3.88%	+0.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	6.55%	-2.18%

Volatility

GCAD vs. NATO - Volatility Comparison

Gabelli Commercial Aerospace & Defense ETF (GCAD) has a higher volatility of 8.43% compared to Themes Transatlantic Defense ETF (NATO) at 7.56%. This indicates that GCAD'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

	GCAD	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.43%	7.56%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	17.60%	18.40%	-0.80%
Volatility (1Y) Calculated over the trailing 1-year period	20.38%	21.51%	-1.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	22.74%	-3.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.76%	22.74%	-3.98%

GCAD vs. NATO - Expense Ratio Comparison

GCAD has a 0.00% expense ratio, which is lower than NATO's 0.35% expense ratio.

Dividends

GCAD vs. NATO - Dividend Comparison

GCAD's dividend yield for the trailing twelve months is around 1.73%, more than NATO's 0.43% yield.

Position	TTM	2025	2024	2023
GCAD Gabelli Commercial Aerospace & Defense ETF	1.73%	2.06%	4.94%	3.62%
NATO Themes Transatlantic Defense ETF	0.43%	0.45%	0.08%	0.00%

Frequently Asked Questions

Can I hold both GCAD and NATO in my portfolio?

GCAD and NATO have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GCAD or NATO?

GCAD has higher volatility (8.43%) compared to NATO (7.56%). In terms of maximum drawdown, GCAD dropped -16.14% vs NATO's -15.99%.

Which ETF is better, GCAD or NATO?

On 1-year performance, GCAD leads with 39.72% vs 18.50% for NATO. On fees, GCAD is cheaper at 0.00% per year. On volatility, NATO has been the lower-risk option at 7.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GCAD or NATO?

Over the 1-year period, GCAD has performed better with a 39.72% return vs 18.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GCAD or NATO?

GCAD is cheaper with a 0.00% expense ratio, compared with 0.35% for NATO.

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

GCAD has the higher dividend yield at 1.73%, compared with 0.43% for NATO.

What is the main difference between GCAD and NATO?

They also come from different issuers: Gabelli and Themes. Their fees differ too: 0.00% for GCAD and 0.35% for NATO.

Which has better risk-adjusted returns?

GCAD currently has the higher Sharpe Ratio (1.96 vs 0.87), 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.