IDEF vs. NATO

Last updated Apr 1, 2026

Compare and contrast key facts about iShares Defense Industrials Active ETF (IDEF) and Themes Transatlantic Defense ETF (NATO).

IDEF and NATO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IDEF is an actively managed fund by iShares. It was launched on May 19, 2025. NATO is a passively managed fund by Themes that tracks the performance of the Solactive Transatlantic Aerospace and Defense Index. It was launched on Oct 10, 2024.

Performance

IDEF vs. NATO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Defense Industrials Active ETF (IDEF) and Themes Transatlantic Defense ETF (NATO). The values are adjusted to include any dividend payments, if applicable.

IDEF vs. NATO - Yearly Performance Comparison

	2026 (YTD)	2025
IDEF iShares Defense Industrials Active ETF	6.20%	23.05%
NATO Themes Transatlantic Defense ETF	0.78%	17.30%

Returns By Period

In the year-to-date period, IDEF achieves a 6.20% return, which is significantly higher than NATO's 0.78% return.

IDEF

• 1D: 4.15%
• 1M: -8.78%
• YTD: 6.20%
• 6M: 3.09%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

NATO

• 1D: 3.75%
• 1M: -11.24%
• YTD: 0.78%
• 6M: -1.05%
• 1Y: 34.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IDEF vs. NATO - Expense Ratio Comparison

IDEF has a 0.55% expense ratio, which is higher than NATO's 0.35% expense ratio.

IDEF

iShares Defense Industrials Active ETF

NATO

Themes Transatlantic Defense ETF

Return for Risk

IDEF 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: 81
NATO Sharpe Ratio Rank: 82
NATO Sortino Ratio Rank: 84
NATO Omega Ratio Rank: 80
NATO Calmar Ratio Rank: 81
NATO Martin Ratio Rank: 79

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.

IDEF vs. NATO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Defense Industrials Active ETF (IDEF) 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

	IDEF	NATO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.53	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.85	1.56	+0.29

Correlation

The correlation between IDEF and NATO is 0.88, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

IDEF vs. NATO - Dividend Comparison

IDEF's dividend yield for the trailing twelve months is around 0.16%, less than NATO's 0.45% yield.

	TTM	2025	2024
IDEF iShares Defense Industrials Active ETF	0.16%	0.17%	0.00%
NATO Themes Transatlantic Defense ETF	0.45%	0.45%	0.08%

Drawdowns

IDEF vs. NATO - Drawdown Comparison

The maximum IDEF drawdown since its inception was -14.63%, smaller than the maximum NATO drawdown of -15.99%. Use the drawdown chart below to compare losses from any high point for IDEF and NATO.

Drawdown Indicators

	IDEF	NATO	Difference
Max Drawdown Largest peak-to-trough decline	-14.63%	-15.99%	+1.36%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.99%	—
Current Drawdown Current decline from peak	-11.08%	-12.83%	+1.75%
Average Drawdown Average peak-to-trough decline	-2.88%	-2.86%	-0.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.26%	—

Volatility

Volatility by Period

	IDEF	NATO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	8.45%	—
Volatility (6M) Calculated over the trailing 6-month period	—	15.04%	—
Volatility (1Y) Calculated over the trailing 1-year period	20.00%	22.63%	-2.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.00%	21.75%	-1.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.00%	21.75%	-1.75%