HWAY vs. NATO

Last updated Jun 4, 2026

HWAY (Themes US Infrastructure ETF) and NATO (Themes Transatlantic Defense ETF) are both exchange-traded funds - HWAY is a Industrials Equities fund tracking the Solactive United States Infrastructure Index, while NATO is a Aerospace & Defense fund tracking the Solactive Transatlantic Aerospace and Defense Index. Both are passively managed. Over the past year, HWAY returned 42.60% vs 13.50% for NATO. A 0.56 correlation means they provide meaningful diversification when combined. HWAY charges 0.29%/yr vs 0.35%/yr for NATO.

Performance

HWAY vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes US Infrastructure ETF (HWAY) 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, HWAY achieves a 22.83% return, which is significantly higher than NATO's 1.39% return.

HWAY

• 1D: 0.93%
• 1M: 3.11%
• YTD: 22.83%
• 6M: 21.62%
• 1Y: 42.60%
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: -1.87%
• 1M: 2.05%
• YTD: 1.39%
• 6M: 7.82%
• 1Y: 13.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HWAY vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
HWAY Themes US Infrastructure ETF	22.83%	19.99%	-4.70%
NATO Themes Transatlantic Defense ETF	1.39%	50.95%	0.35%

Correlation

The correlation between HWAY and NATO is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (All Time) Calculated using the full available price history since Oct 14, 2024	0.56

The correlation between HWAY and NATO has been stable across timeframes, ranging from 0.55 to 0.56 - a consistent structural relationship.

Return for Risk

HWAY vs. NATO — Risk / Return Rank

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

HWAY

HWAY Risk / Return Rank: 66
HWAY Sharpe Ratio Rank: 67
HWAY Sortino Ratio Rank: 67
HWAY Omega Ratio Rank: 61
HWAY Calmar Ratio Rank: 69
HWAY Martin Ratio Rank: 69

NATO

NATO Risk / Return Rank: 19
NATO Sharpe Ratio Rank: 19
NATO Sortino Ratio Rank: 20
NATO Omega Ratio Rank: 19
NATO Calmar Ratio Rank: 20
NATO Martin Ratio Rank: 19

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.

HWAY vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes US Infrastructure ETF (HWAY) 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.

	HWAY	NATO	Difference
Sharpe ratio Return per unit of total volatility	2.17	0.65	+1.52
Sortino ratio Return per unit of downside risk	3.03	1.07	+1.96
Omega ratio Gain probability vs. loss probability	1.37	1.13	+0.24
Calmar ratio Return relative to maximum drawdown	3.39	0.85	+2.54
Martin ratio Return relative to average drawdown	12.51	2.19	+10.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HWAY vs. NATO - Sharpe Ratio Comparison

The current HWAY Sharpe Ratio is 2.17, which is higher than the NATO Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of HWAY 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.

Sharpe Ratios by Period

	HWAY	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	0.65	+1.52
Sharpe Ratio (All Time) Calculated using the full available price history	1.25	1.34	-0.09

Drawdowns

HWAY vs. NATO - Drawdown Comparison

The maximum HWAY drawdown since its inception was -25.96%, which is greater than NATO's maximum drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for HWAY and NATO.

Drawdown Indicators

	HWAY	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-25.96%	-15.99%	-9.97%
Max Drawdown (1Y) Largest decline over 1 year	-12.63%	-15.99%	+3.36%
Current Drawdown Current decline from peak	-1.26%	-12.30%	+11.04%
Average Drawdown Average peak-to-trough decline	-5.38%	-3.71%	-1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.41%	6.17%	-2.76%

Volatility

HWAY vs. NATO - Volatility Comparison

The current volatility for Themes US Infrastructure ETF (HWAY) is 7.31%, while Themes Transatlantic Defense ETF (NATO) has a volatility of 7.97%. This indicates that HWAY 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

	HWAY	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.31%	7.97%	-0.66%
Volatility (6M) Calculated over the trailing 6-month period	16.31%	17.65%	-1.34%
Volatility (1Y) Calculated over the trailing 1-year period	19.75%	20.71%	-0.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.42%	22.61%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.42%	22.61%	-0.19%

HWAY vs. NATO - Expense Ratio Comparison

HWAY has a 0.29% expense ratio, which is lower than NATO's 0.35% expense ratio.

Dividends

HWAY vs. NATO - Dividend Comparison

HWAY's dividend yield for the trailing twelve months is around 1.05%, more than NATO's 0.44% yield.

Position	TTM	2025	2024
HWAY Themes US Infrastructure ETF	1.05%	1.29%	0.22%
NATO Themes Transatlantic Defense ETF	0.44%	0.45%	0.08%

Frequently Asked Questions

Can I hold both HWAY and NATO in my portfolio?

HWAY and NATO have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HWAY or NATO?

NATO has higher volatility (7.97%) compared to HWAY (7.31%). In terms of maximum drawdown, HWAY dropped -25.96% vs NATO's -15.99%.

Which ETF is better, HWAY or NATO?

On 1-year performance, HWAY leads with 42.60% vs 13.50% for NATO. On fees, HWAY is cheaper at 0.29% per year. On volatility, HWAY has been the lower-risk option at 7.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HWAY or NATO?

Over the 1-year period, HWAY has performed better with a 42.60% return vs 13.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HWAY or NATO?

HWAY is cheaper with a 0.29% expense ratio, compared with 0.35% for NATO.

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

HWAY has the higher dividend yield at 1.05%, compared with 0.44% for NATO.

What is the main difference between HWAY and NATO?

HWAY is categorized as Industrials Equities, while NATO is Aerospace & Defense. HWAY tracks Solactive United States Infrastructure Index, while NATO tracks Solactive Transatlantic Aerospace and Defense Index. Their fees differ too: 0.29% for HWAY and 0.35% for NATO.

Which has better risk-adjusted returns?

HWAY currently has the higher Sharpe Ratio (2.17 vs 0.65), 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.